5 Ways to Show Prospects You Take Data Privacy Seriously

December 7, 2022
Contributor: Amita Jain

With increased public awareness around data breaches, use these guidelines to communicate your commitment to protecting customer data.

If you are a tech marketer, you are likely to collect massive amounts of user information. While this data may be useful for improving customer experience and marketing strategies, it comes with a great responsibility to protect that data from misuse. 

Data privacy has become an important differentiator for buyers. In a recent Gartner Digital Markets survey[*], 84% of businesses said data privacy is the most valuable factor for them when buying software. 

Marketers and sales representatives who successfully demonstrate their commitment to data privacy are likely to have a leg up on the competition. By being transparent about the steps you take to secure customer data, you build their trust in your solutions and ensure your business is operating in an honest and helpful way. 

This article lists five ways to convey your privacy policies and to show prospects that you take data privacy and security seriously. 

What is the importance of data privacy for businesses?

As a B2B software provider, you’re responsible for the sensitive data of multiple parties—your clients and their customers and employees. Any data leak would have devastating consequences for everyone. It will make individuals vulnerable to identity theft, fraud and other nefarious activities and cost clients’ businesses a fortune in public image, cyberattacks, data loss, fines and consumer trust.  

For this reason, organizations of all sizes are demanding a greater commitment to data privacy from the software companies they do business with.

Five actions to communicate your focus on data privacy to software buyers


1. Develop your company’s privacy policy page

Create a data privacy policy that gives buyers all information they need to know about how your business collects, uses and protects data.

Once you have developed a privacy policy, make sure buyers can easily find your policy on your website or in your product documentation. Make it available to all employees, customers and other relevant parties. Include a link to the policy in any marketing communications, such as lead generation forms you display on your website, newsletters or marketing emails. Provide prospects with clear and crisp privacy disclosure notices from time to time that explain to them the types of customer data you collect and how you use it.
Three questions to answer in your data privacy and security policy:
 
  1. Which customer data do you collect and why?
  2. What security measures do you take to prevent unauthorized access? 
  3. What steps would you take in the event of a data breach?

2. Outline your compliance with data privacy laws

Many jurisdictions have enacted data privacy regulations to protect individuals’ information online. Gartner predicts that by 2024, over 75% of the world’s population will have its personal information covered under modern privacy regulations[1].

Noncompliance with these rules when collecting data can lead to huge business costs. In the European Union, for example, companies can be fined up to 4% of their global annual revenue for violating the General Data Protection Regulation (GDPR)[2].

Show businesses that your software is compliant with data protection laws, and an association with you will also help them adhere to government regulations. Mention all data protection laws and standards that you abide by in your security policies. Getting certified by third-party evaluators authoritative in the region of your prospective buyers’ operations is another way to show them your commitment to meeting regulatory standards for data security.
Important data privacy regulations you should know:
 

General Data Protection Regulation (GDPR) is the European Union’s privacy regulation that came into effect in 2018. Among other things, it requires websites to get explicit user consent before collecting their information and gives users the right to access a copy of their personal information that companies store. Many laws, for instance, Australia’s Privacy Amendment (Notifiable Data Breaches) Act 2017, which mandates organizations with over AU$3 million turnover to disclose data breaches, are incorporating GDPR-like compliances into their blueprints.

Circulating bans on third-party cookies by behemoths such as Google, Apple, Safari and Firefox are leading marketers to adopt higher standards of user privacy and direct their focus on the practices of gathering first-party data directly from customers. 

California Consumer Privacy Act (CCPA) is a regulation focused on data transparency that gives consumers in California certain privacy rights, such as the right to know the information companies have saved on them, order the deletion of that data and opt out of the sale of that information.

Several other US states, including Colorado, Connecticut, Utah and Virginia, have passed their separate privacy laws, and a dozen others are in the process of doing the same.[3]

3. Describe the privacy features you use to protect data

Users want more control over their data. Be transparent about how you manage their information and what tools, processes and features you provide in your software that are involved with this process. Demystify the black box that is data privacy and help buyers feel confident about your business practices. 

Build your data privacy features around the four key pillars below.

4. Provide advice and training around data protection

As part of your services, educate software buyers on how to use your solutions with data privacy best practices. Employees are the first line of defense when it comes to protecting customer data so they need to be educated. Ensure they're up to date on security policies and procedures and train them to identify and prevent potential threats.

Providing training and support services goes a long way in attracting and retaining software buyers, according to the Gartner Digital Markets survey. It’ll reflect your solution’s readiness for a privacy-first world and build buyers’ confidence in the future-proof nature of your products and services.
Pro tips for training your software buyers on privacy:
 
  • Guide buyers on identifying trusted third-party service providers, such as payment processors, who also adhere to data privacy regulations.
  • Use a mix of self-guided modules and live training to teach personnel how to handle personal data in a responsible and compliant manner.

5. Collect only essential data points

Limit the amount of data you collect to reduce the risk of data breaches and improve buyers’ trust. Strike a balance between collecting data to improve your products and services and ensuring users’ privacy by collecting only the most relevant data points. 

Measure the relevance of data in two ways. One way is by collecting only data that doesn’t count as personally identifiable information (PII) which doesn’t reveal an individual's identity. For example, you may collect users’ interests, demographics and activities but leave out credit card information or home addresses. Another way is to allow users to opt in or out of certain data collection practices. This will allow users to share only the information they are comfortable with. 
 

Also read: What Is Web 3.0, and How Does It Impact Digital Marketers?

Continue to make data privacy the priority

In today’s age of big data, buyers have little control over their data, whether it comes to using search engines, social media, credit cards, or just about anything. Integrate these privacy practices that gradually give users more control over their data and build greater buyer trust.  

Ensuring data privacy is not a one-time event. It’s a continuous cycle. Audit your data privacy policies and practices regularly to ensure your standards are effective and remain up to date with the latest regulatory developments.

Amita Jain

Amita Jain covers B2B content creation and strategy to help businesses reach their marketing goals. She received her master’s degree from King’s College London, U.K. Exploring the world of art and reading fiction are some of her usual happy distractions outside of work. Connect with Amita on LinkedIn.

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Methodology

*Gartner Digital Markets 2022 Global Software Buyer Trends Survey was conducted to understand business challenges and approaches to technology and software investments. The primary research was conducted in October 2021 among a total of 2,501 respondents in the following countries: United States, Canada, Mexico, United Kingdom, India, Japan, Australia, New Zealand, Italy, Portugal, Brazil, Colombia, Belgium, Poland, Netherlands, Sweden, Denmark, Finland, Norway, Ireland, Singapore, South Africa, Spain, Germany and France. Respondents were screened for having recently purchased technology and having decision-making authority. Respondents were required to be responsible for making decisions on technology purchases for their organizations.

Sources

  1. New Privacy Laws Outside Europe and California: A Global Cheat Sheet, Gartner
  2. What are the GDPR Fines? Complete Guide to GDPR Compliance
  3. US State Privacy Legislation Tracker, IAPP Global Privacy Summit 2023
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