Data privacy has evolved from a mandatory legal requirement into a critical business advantage as more consumers are switching to brands that demonstrate exceptional data handling. According to a recent study that examined 280 brands over four years, brands with strong privacy practices saw 12.31 percent higher purchase intent than brands with weaker practices. The research team also found that privacy stewardship can influence customers’ purchasing behavior and the way they engage with the company, and it’s why businesses should actively treat data privacy as a way to earn customer trust.

One of the researchers, University of Nebraska-Chisolm professor Natalie Chisam, said that privacy stewardship isn’t just about remediation and recovery, which are typical activities that take place after a breach. “It’s about actively showing customers that their data is handled with care, restraint, and accountability,” she explains. Here’s why data guardianship should be embedded in every part of business processes, and how strengthening data protection builds long-term customer loyalty.

Trust as Competitive Advantage

These days, it seems like people can’t use apps, buy from online shops, or even access certain content without providing their personal data. While some individuals may have no qualms filling out online forms, about 30 percent of Internet users will abandon forms due to privacy issues and security concerns. App developers have become increasingly aware that requesting personal data requires user trust, and they know that breaches and perceived over-collection can result in uninstalls and severe reputational damage. This is why more privacy-focused, low data collection apps are being designed, such as the Sincerely mental wellness app co-founded by Zibo Gao, which allows users to write and share letters anonymously. Such applications only require basic data to manage accounts, which decreases the risks associated with data storage.

In an era of widespread breaches and data misuse, companies should treat privacy as a core value. Since 88 percent of users will willingly provide their personal data if they trust a business, organizations should go beyond compliance to earn customer trust. Practicing privacy stewardship to protect even the most basic data can help companies to get the information that they’ll need later if they decide to provide Artificial Intelligence, improved services, and personalized experiences to their customers.

Privacy by Design

Most people believe in the saying that ‘an ounce of prevention is better than a pound of cure,’ and this is applicable in data protection too. Customers are more likely to be loyal to businesses that take proactive measures to protect their data instead of just taking action when a problem occurs. By integrating data protection into IT systems, business processes, and tech products from the very start, companies can anticipate risks to earn customer loyalty.

Some of the most successful brands in the world, such as Apple, Adobe, and Under Armour, have high customer loyalty since not only do they offer exceptional products, but they’ve also implemented privacy by design. Apple, for instance, is known for embedding privacy into iPads and iPhones, collecting only the minimum information necessary for their services, and implementing strict control over app tracking. Under Armour uses firewalls and cookie consent banners to secure sensitive data in their fitness platforms, while Adobe uses high-security access restrictions to protect user information. These companies also use clear, easy-to-understand language to let users know how their data is handled and used, which enables their customers to feel at ease as they continue to trust them with their personal information.

Best Practices to Embed Privacy Into Processes

All companies, from major corporations to smaller startups, can implement various data privacy strategies to earn customer loyalty and trust. First, be transparent and replace legalese and jargon with clear and accessible language to explain what type of data is collected, why it’s needed, and all the ways it will be kept from being accessed by unauthorized persons. Keep data collection to a minimum, and only require users to provide the data that’s essential to operations. Also, give users a chance to opt-in or disable geolocation, marketing, or tracking data, and make it easy to unsubscribe from a loyalty program or service to strengthen trust. Lastly, train all staff on the ethical use of data and best privacy practices, and implement access controls so that only certain employees who need to access personal data for their job can see it.

Handling data responsibly requires a proactive approach to increase customer trust and loyalty. Prioritize privacy stewardship to boost customer satisfaction and enhance your business reputation.