Businesses must first help customers understand how broad the data spectrum is.
Most times, advertisers and marketers deal with data that is not sensitive, like the type of car the customer drives. On the other hand, information on ethnicity and political leanings is classified as sensitive data. To avoid data conflation between different types, businesses must classify three different categories of companies.
“Responsible” companies that abide by data laws when handling user data. These brands use such data to improve UX and offer effective loyalty programs. “Revolutionary” companies use data to focus on rapid innovation, solve problems and offer exciting new services. Given that they represent the cutting edge, revolutionary companies are likely to outpace regulation.
“Repentant” brands may have fallen short of plugging data security loopholes and ended up with data breaches. They do own up to the mistake, take immediate action and eventually work towards regaining lost consumer trust.
[5 minute read]