Connecting With Customers Requires Protecting Their Data

ustomer data never used to be a priority for technology firms. While companies collected basic customer data, there was no input after the products, devices, or software were sold. The cloud and the internet of things has changed that. Now technology firms and customers are constantly connected. Devices have access to people’s homes and their intimate moments. Protecting the information technology firms now hold is critical to retaining customer trust.

While the public is becoming more aware of data collection and potential privacy risks, that doesn’t mean they’re becoming comfortable with it. In fact, it’s the opposite; new regulations like the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act give individuals specific rights regarding how their data is used. Major data breaches like the Equifax incident a few years ago have led to Congressional investigations into how firms handle customer data.

Be Smart About User Data Management

To get ahead of the bad press and changing expectations, technology industry businesses need to have strong processes in place to protect customer data. To a large extent, the first step is being upfront about the data you collect and what you do about it. Build pages that clearly explain the data collected and allow users to opt in or opt out explicitly. Don’t request more access than your software or device needs to perform its basic functions. Even when the law allows it, don’t sell data to third parties without your users’ permission.

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