Gaining Consumer Confidence with Transparency

By Enterprise Security Magazine | Tuesday, February 05, 2019

Information Security

Research proves that there is a close link between negative emotions and illness. The science behind negative emotions is what companies seem to take advantage of. But, in the future where customer data will become an increasing source of competitive advantage, it will be essential to gain consumer confidence. Companies which are transparent in their ways of collecting and controlling information offer fair value in return, as a result, they are trusted and gain continuous and even expanded access of their clients. Those companies that disguise how they use personal data and do not value it are losing the goodwill of their customers and their business. For instance, Facebook and Cambridge Analytica incident is the recent example.

In the digital age, a hacker who retains data is parallel to the course. One-quarter of the American adults report that they were in an uncomfortable position to learn their information was a breach of data. However, it doesn’t seem necessary—only 11 percent of consumers said they stopped doing business with the hacked company after their information was compromised. The Survey is first to evaluate consumers experiences with that data breaches and how data breach impacts customer relationship with the company that lost their data.

Companies have become proactive and are now increasingly seem to ask for forgiveness only after the GDPR was introduced in Europe.  The survey found that customer identity and access management found that nearly half of a total 1,000 consumers were willing to forgive data breach if that company was transparent in the event and response. Although, 71 percent of respondents believe the U.S. government should enact legislation that is similar to the EU's GDPR.  But, the survey also highlights that forgiveness doesn't necessarily translate into open data sharing.

Check out: Top Information Security Solution Providers (DeloitteLight Point Security).

The survey can help companies formulate their policies regarding the breach. Companies should be proactive and upfront in their marketing campaign. For instance, Google marketing campaign also reflects the changing trend and privacy legislation. The voluntary identification and adoption of the most stringent data protection policies will inoculate a company against legal challenges and send an important message to consumers that contribute to their competitive advantage. After all, access to data is critical in the information economy, and consumer confidence is the key to unlocking it.