5 Reasons Why Data Privacy Is Important
Data privacy is one of the most significant issues that customers face when they’re online.
When you look at data privacy through a customer lens, you’ll see how crucial it is for them to control their personal information—and how much work companies need to do to safeguard that information.
The internet has created new possibilities for people to conduct business and transact. These days, online companies and transactions have become a norm. However, the emergence of these new forms of business also entails surrendering sensitive information to the internet, making data privacy of utmost importance.
This article will share with you what data privacy is and what makes it so important.
What is Data Privacy?
Data privacy is the concept that personal data should be kept safe and secure. In a world where data is constantly given, it’s important to have laws in place to protect it.
Data privacy laws are designed to prevent unauthorized access to information. They also help prevent companies from selling your personal information without your consent or knowledge.
What Data is Shared Online
There are several kinds of data passing by numerous online platforms. Personal information involves details about a person’s identity, which when put together can identify such a person. So, what are these? Examples of data being shared online include:
- Name
- Age
- Contact information
- Email address
- Home address
- Country of origin
- Language
- Computer IP address
Data Privacy in the Philippines
Republic Act No. 10173, also known as the Data Privacy Act of 2012, aims to protect all forms of information, from private to sensitive ones. It covers natural and juridical people involved in the personal processing of information.
5 Reasons Why Data Privacy is Important
Understanding the definition of data privacy isn’t enough to fully grasp the concept’s importance. The fact that people’s information is available online makes them susceptible to hacks and breaches. In this section, you’ll learn five reasons that make data privacy paramount.
1. To comply with privacy requirements
Regarding business requirements, privacy requirements are at the top of the list of must-have compliances. Several enterprises have clients that include their personal information in their database.
Having privacy requirements ensures client safety and attracts them to the business. Each company may have its own unique privacy policies. But regardless of distinctions, the aim to protect data is still the same.
2. To improve brand value
One aspect several customers look for in a business these days is the value they get. Aside from the products or services the company offers, policies like data privacy improve brand value because implementing it guarantees the consumer’s safety.
Once you establish that trust between you and the customer, you must maintain it. Any data privacy issue can immediately impact your business and diminish your value.
3. To avoid breaching privacy rights
Arguably, one of the worst things that can happen to any company is a data breach or violation of privacy rights. If a breach occurs or when privacy rights are violated, legal actions follow, which you want to avoid.
Aside from legal issues, there are consequences you want to be aware of. Examples include:
- Loss of loyalty with consumers
- Diminished reputation
- Revenue loss
4. To improve customer trust
The consumer base is an important aspect of successful businesses. The customers are the people that support a brand and can continue growing depending on how well the company treats them.
A brand that has data privacy issues or has had data breaches in the past can lose the trust of its customers. When the customers’ personal data is secured, customer trust is more likely to improve.
5. To aid in the secured free flow of information for innovation and growth
The Implementing Rules and Regulations of the Data Privacy Act of 2012 provide more context on safeguarding each individual’s privacy while ensuring the free flow of information for growth.
The provisions recognize the key role of information and communication technology but emphasize a strong security network for every person’s information.
Having an Impenetrable Defense
You need a robust security system to protect your customer’s information, regardless of your business size. Technology has advanced to a point in which anyone has the power to access almost any information they want, and that’s precisely why you need to combat this by prioritizing your data privacy measures.
Not only is this for your customers’ safety, but it is also for your business because there are company data and financial information that should never be breached. The stronger your data privacy is, the more trust consumers will have, which can lead to success.
If your business has an existing database that needs assistance, Inquiro has you covered. We offer solutions that will help you make smarter, data-driven decisions. Request a demo to learn more information about data protection.
