Collecting customer data: 5 Ways to do it securely

Collecting customer data: 5 Ways to do it securely

Meeting peoples’ wants is a central tenet of business in every industry. To do this, you must collect and analyze customer data. But the means by which you obtain this data cannot be in breach of privacy laws, as that would risk legal, financial, and reputational consequences. By adhering to these five tips, you can collect customer data while still respecting the law and customers’ privacy.

How do you collect customer data securely?

There are five key points to consider when collecting customer data in a way that balances effectiveness with regulation compliance. Adhering to these enables you to obtain the information you need while still respecting customer privacy.

1. Prioritize security

Investing in robust security systems and providing your employees with training in data privacy best practices is a nonnegotiable step. Modernizing your security measures is also essential to protecting customer data effectively. Establish rigorous protocols for handling and disclosing customer data, and enforce strict consequences for any policy infringements.

2. Exercise ethical data collection

According to the Cisco 2022 Consumer Privacy Survey, 81% of consumers believe a company’s approach to personal data is a reflection of their approach to customers. Seventy-six percent said they would not buy from a company they did not trust with their data. Such statistics emphasize the importance of honesty and transparency in regard to collecting customer data. This necessitates creating clear and comprehensive privacy policies that allow customers to decide what information they want to share, and clearly stating how their data will be used.

3. Collect only the data you need

There is a vast ocean of data out in the digital world. Most of the data a business collects serves no purpose, wasting resources to obtain and taking up storage. Sorting through all that data can overwhelm analysts and delay informed decisions. Therefore, it's vital to establish guidelines before data collection, including:

  • Identifying the information of utmost importance
  • Ensuring alignment with your business objectives
  • Planning how the data will be analyzed
  • Determining how this data can enhance your business

4. Back up all data

Your efforts in collecting customer data would be in vain if it's lost due to cyberattacks, natural disasters, or IT failures. Thus, a solid backup and data recovery plan is a necessity to safeguard this valuable information.

5. Update customer data regularly

Outdated or incorrect data, such as phone numbers, emails, and addresses, can hinder your ability to nurture customer relationships. To avoid this issue, regularly review and remove unnecessary data, duplicates, and inactive contacts.

If you're seeking reliable IT solutions to optimize your data collection efforts, don't hesitate to reach out to us today.

Published with permission from TechAdvisory.org. Source.


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