With the rising publicity of data breaches and the sophistication of these attacks, it’s no wonder consumers are increasingly concerned about the safety of their data. New laws in Europe and the United States have taken steps to address the public’s concerns, and technology leaders can use this growing trend of data security to gain an edge over the competition.
A recent study by Deloitte examined how US households have adjusted their technology use following the pandemic’s waning. Consumers are intentional about activities they chose to do virtually or in person and report that tech-enabled work, school, fitness, and healthcare—in the right dosage—are making life better, healthier, and more fulfilling.
However, many consumers are wary about the misuse of their data, including location tracking, and data security. Research done by McKinsey reports that consumers are more likely to restrict the type of data shared with organizations or walk away from a transaction if they feel their information is not secure. For certain services, like healthcare or finance, consumers are willing to put aside their privacy concerns.
Despite the emphasis consumers put on data security, many do not know how to protect themselves online. While some people have implemented at least one security measure, most leave themselves vulnerable to breaches by not changing passwords frequently or not encrypting online communications. Deloitte reported one-third of respondents experienced some security breach in the past year including a social media account hack and identity theft.
To earn the trust of consumers, organizations must be smart when collecting data. The same McKinsey report recommends evaluating if the data collected is necessary for analytics in the future and scaling back to meet consumer-privacy requirements. Being transparent about the data collected and why it is collected is a way to gain consumer trust.
By giving consumers greater transparency and control over data security and privacy, companies may gain an edge over the competition. Disclosing data breaches, limiting the information collected, and overall demonstrating a thoughtful approach to data management allow consumers to feel secure.
