The Balance between Transparency and Data Privacy

Your company collects and uses data all the time from everyone you deal with. But with so many identity theft and privacy issues going on in the realm of the public’s data nowadays, institutions like governments demand more transparency, while the public clamor for more privacy. Such a balance is becoming a necessity for many companies that do not want to get into trouble with authorities as governments implement policies like the UBO register. Your organization needs to be able to balance data transparency and privacy in an age where the ironic need for both is what can make or break your business.

A second layer that needs to be addressed in this issue is that as much as people value their privacy, the demand for personalized content has also risen. Which means that people want their data to be shared to relevant parties, while still keeping their anonymity. And this is where everything gets tricky for organizations. They must succeed in this balancing act or risk losing trust like Facebook, whose trust rating has dropped by 51% as the company shared too much information and violated public trust.

On the other hand, organizations that put too much premium in privacy have faced dire consequences. First, companies lose out on not being able to maximize the monetization potential of these data, thereby losing out on potential gains. Secondly, and more importantly, failure to be transparent can result in a wider-encompassing shockwave. One such event is the terrorist attacks in Paris where, the lack of cooperation from private tech companies have disabled the government from unraveling pertinent encrypted data that could have saved many lives.

There are many horror stories of trusted brands that fell from grace, all because their lack of balance. Achieving this balance is not easy, but for those who have successfully juggled their responsibility to be transparent while being respectful of public insistence in privacy can reap huge rewards including:

1. Optimal Data Monetization – With consumer data in your hands, your company will be able to create more personalized offers that consumers want and may even need–and when done at the right time, could compel your audience to make a purchase decision from your company immediately. This is only possible when you have the right data and when it is well-utilized. The insights you gain, when used in responsible ways, serves both your and your customers’ needs.
2. Better Engagement – One thing that the public needs is to have a semblance of control over everything that happens in their lives. And in this age where people get swept up in the schemes of too many big players, empowering them is a right move by any organization. This gives them a choice about the information they share and when they want to share it to improve their experiences. Because of this, consumers are more able to engage with your brand in a manner they prefer because they have given you what they want, how they want, where they want and when.
3. Increased Loyalty – Whether we like it or not, we live in an age of transparency. Where secrets are rarely kept secrets anymore, especially where institutions and businesses are concerned. And because of this, people now highly value authenticity. So when you respect people by being transparent about your data practices, it helps your company connect with people and build brand loyalty. Moreover, when the public knows you have nothing to hide, the behavioral data they give also becomes more authentic improving both your organization’s and your consumers’ experience, translating to higher revenues for your organization.

In practice, responsible use of data that is balanced by both privacy and transparency is the new path to business success. As the public becomes more informed and as multiple threats loom over the emergence of big data, your company needs to be able to walk the fine line between two opposing ideals to increase your profits gained from consumer trust and the savvy use of data that ensures both their safety and the delivery of the right content at the right time.