Big data is an exciting opportunity for businesses looking for the information they need to use targeted messaging and personalized experiences to boost profits, but the thought of a company having access to all of their online information has many consumers worried. With information about the National Security Agency’s monitoring of email and phone calls, and social networks like Facebook constantly pushing that privacy boundary, it’s only natural that people are concerned about the privacy and security of their data.
A recent survey found that 88 percent of people consider one industry a threat to their online privacy, but there is also very little understanding of who is collecting data and for what purpose. Even among millennials, a group that conventional wisdom deems willing to give up private information, 71 percent feel they need to be careful about what information they share online. While it can be tempting to ignore privacy concerns, after all giants like Google seem to be able to collect it without any real consequences, without developing trust with the consumer the majority of potential value promised by big data will not be realized.
Be Aware of Your Responsibility
Ultimately, the reason businesses collect and use big data is a worthy goal. Businesses seek to provide a win win situation in which they provide the products that are most important to the consumer in a convenient manner, and in the process avoid wasted dollars on ineffective marketing and boost profits. However, keeping the process mutually beneficial requires companies to recognize their responsibility to protect the privacy of their customers’ information. Consumers are much more willing to share information if they know the purpose it is being used for and that there are proper security measures in place.
The level of responsibility organizations have also varies by industry as does the level of trust certain sectors have with consumers. Consumers are much more trusting of sharing data with e-commerce sites than Web 2.0 companies. They are also much more concerned about the privacy of financial and health data than other personal information. Thus, companies that collect highly sensitive information will have to use much more care in protecting that information in order to gain trust.
Transparency is Key
If an organization wants consumers to continue to share data with them, they have to be transparent about how that data is going to be used and how it will be protected. Start internally by creating a privacy policy that outlines what data will be collected and what it will be used for. Be sure to address security as well. Just because you don’t sell consumer data or use it for negative purposes doesn’t mean a hacker won’t. If you use a cloud database, check the privacy and security policies for the provider as well. Once the policies are in place, communicate them openly to your customers.
Give Options
The survey mentioned above found that consumers are 52 percent more willing to share information if they are able to manage their privacy. This means that giving consumers options of whether to have their activity monitored can go a long way to showing your commitment to privacy and gaining consumer trust. Grocery stores have been collecting consumer data for years, but they do it by asking the consumer to sign up for it with rewards programs. Online sites that do the same thing will get their customers to sign up just as easily.
Give and Communicate Benefits
A customer’s digital information is highly valuable. Thus customers want to receive something in return for a company’s use of that valuable information. Exclusive deals, discounts, free shipping or even extra services are all easy benefits to offer, and by mentioning that the big data initiative made a particular benefit possible, the consumer will recognize the value of the exchange for themselves as well.
Privacy is important, but that doesn’t mean businesses can’t use big data. Big data is a tool that has to be used wisely just like any other piece of technology. There will be those that abuse it, but the businesses that truly want to be successful with big data will be those that recognize the true value of what their customers are giving them and protect the privacy and security of the data they collect.