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Data Privacy Can Be a Competitive Advantage - Commentary on the European Data Privacy DayBONN, Germany, January 28, 2016 /PRNewswire/ -- On 28th January at the initiative of the Council of Europe, the European Data Privacy Day will take place for the 9th time. The goal of the Data Privacy Day is to strengthen the data privacy awareness with consumers in the EU. For companies, data privacy is not only a legal requirement but also an opportunity for a competitive advantage. In a digitalised economy which increasingly focusses on data-driven business models, user trust is an essential precondition for success. To gain the consumer's trust, two thing are important: 1. Transparency: In their data privacy/data privacy declaration, companies should describe clearly and in detail which data is to be collected, for which purpose it will be used, for how long it will be saved and how exactly it will be distributed, as well as which rights to information and deletion the respective consumer has. The clearer and the more transparent data privacy is, the better. Furthermore, it is recommended to create trust already at the point of collecting the data by using clear statements such as "Your data will not be shared with third parties.". Further trust-building measures which should be clearly communicated to the user are e.g., privacy seal, certifications, geographic server locations, contacts for data privacy queries, compliance regulations or specific organisational and technical measures to guarantee data privacy and data privacy. A good example is set by companies who enable consumers to adapt their data and their opt-ins themselves. 2. Creating an Understanding of the Added Value: Trustworthy or not, why should a consumer provide his data to a company if there is no benefit to himself? The consumer should be offered a real added value, e.g., personalised offers which are adjusted to his interests, a user-friendly experience because a company which knows its consumers can relieve them from certain process steps ("If we know your location and your preferences, we can inform you about the best restaurants in your vicinity.") etc. It is important to make the consumer aware that his data is necessary for the service provided. Companies asking for a large number of details which are not necessary for the service provided, tend to deter the consumer. An explanation why data is part of the agreement can also be helpful. Users understand that some fee offers must be web-based and therefore tend to be willing to give a consideration according to the principle of reciprocity, if they are explicitly asked for their collaboration. Research has shown an increase of consent by 26% when a statement like "We need your support! Our offers are free for you - with targeted advertising we can finance them better!" is used in contrast to an argumentation about the customer benefit of better advertising. Free Checklist on Legal Queries in the Big Data Environment You will find more information on the legal use of data in marketing in our checklist 23 Questions on Big Data and Law by artegic and Bird&Bird. This checklist will help companies to avoid legal pitfalls when handling Big Data. To the free download: https://www.artegic.de/big-data-and-law Downloads Portrait Stefan von Lieven (JPG) artegic AG - Know-how and Technology for Online CRM With the online CRM technology ELAINE FIVE, artegic offers a unique high-performance solution for the comprehensive realisation of campaigns, as well as marketing automation based on self-sharpening analytical customer profiles. artegic received the eco Internet Award for its trend-setting implementation of data privacy requirements. Internationally, each month, approximately 2.7 billion emails, SMS and social media messages are sent via ELAINE FIVE. As an associated company of the Fraunhofer Gesellschaft, artegic draws on the know-how of the latter, as well as the expertise from long-standing best practice with renowned clients, such as BMW, PAYBACK, ASUS, CANYON, HYUNDAI and Ticketmaster.
SOURCE artegic AG |