Maintaining data privacy and data governance is a critical cornerstone for companies today. Consumers demand more control over their data and expect companies to provide them with the ability to manage their consent. Add in new and evolving privacy regulations, and it’s clear that companies have work to do to ensure personal data is properly managed and used across the organization.
Understanding Data Privacy Regulations
If you thought dealing with the European Union’s General Data Protection Regulation (GDPR) was challenging, it was only the start. Privacy regulations are growing across the globe, including multiple new regulations in Virginia (VCPDA) and Colorado (ColoPA). Even the California privacy law, CCPA, is changing and is expected to be replaced by the California Privacy Right Act (CPRA).
While many of these regulations are similar, companies need to ensure each regulation is understood and accounted for in how they do business.
Regulations are only part of the challenge companies face related to privacy. Google’s decision to phase out cross-site tracking (via third-party cookies) will make it harder to track consumers across the Web. Apple and Android enable consumers to choose not to be tracked across mobile apps or in email. Facebook also provides users with options to restrict access to their information and activity.
Earning Consumer Trust
Although giving consumers more control over how their information is used makes sense, it presents challenges for companies that want to provide the personalized experiences that many consumers demand. It doesn’t mean personalization can’t happen, but it does require companies to rethink their approach to data privacy and governance.
Data governance must be top-of-mind for every company today, and understanding how to manage it from an operational level is critical. The risk of losing consumer trust is the most important to understand because, without that trust, consumers will not want to buy or engage with you. Ensuring you not only understand data privacy and compliance but have the process, tools, and infrastructure in place to manage it will determine your ultimate success.
Best Practices for Data Privacy and Governance
Transparency and choice builds trust with consumers. And with that trust comes a willingness to share information that ensures more personalized, contextual experiences. So how can companies do that, taking into account a fragmented, complicated global privacy landscape?
1. Give Consumers Choice Over Managing Data Privacy
Consumers want control over their information and how it’s used. Companies that respect that right must be transparent and open with consumers on what data they need and how it will be used to deliver products and services. Companies also need to provide consent options for consumers to manage their personal data.
Consent management is a set of processes to track permissions, properly store personal data, and provide tools to receive and complete data requests such as knowing what data is stored, changing consent, and deleting personal data.
2. Unify Customer Data to Ease Compliance and Governance
Consent can vary across regions, platforms, and experiences, so it’s critical to unify customer profiles across all channels and experiences to manage data privacy properly. By unifying the customer profile, you will more easily and quickly be able to apply the right restrictions at the right time without slowing down campaigns.
3. Think Globally
If your company works globally, you have to think about data privacy and compliance globally. Dealing with multiple geographic regulations requires a unique set of tools and infrastructure that can handle the different requirements in each region.
How to Use a Customer Data Platform to Improve Governance, Privacy, and Compliance
Managing data privacy and compliance is no easy task, but you can ensure you do it effectively with the right tools and technologies. A customer data platform (CDP) can help in a few ways.
1. Managing Consent
When consent is captured through forms on websites, mobile apps, call center apps, and other places, a CDP can store that consent and ensure it is applied across all downstream applications. The CDP can also include automated workflows to help consent management, privacy requests and segment consumers based on these consent settings. CDPs also integrates with consent management applications that give consumers the ability to manage or remove consent.
2. Managing Personal Data
A CDP provides capabilities such as identity resolution and data masking to ensure personal data is managed across platforms appropriately and securely. Identity resolution compiles customer data points from multiple applications and datasets, pulling them into a single customer profile. This profile includes all consent and privacy requirements across applications and regions. Data masking or data obfuscation modifies selected personal data so that only those people and applications with the proper authorization can see and use it.
3. Managing Global Governance
The customer data platform provides a unified approach to data collection, protection, governance, security, and data privacy. A CDP can help you manage your customer data, and governance policies on a global scale, ensuring customers from all regions receive the best experiences based on their unique expectations.