Customers desire to be in control over their data because they do not trust how companies handle it.
According to Pew Research Center research, 79% of customers are concerned about their data security and privacy. It has been identified as the top source of worry for customers in many surveys and polls, especially with the rise in the frequency and severity of data breaches.
This concern implies that data security and privacy should be top of mind for businesses, and they should re-evaluate and update their data privacy policies and procedures regularly.
There are regulations that may prompt to secure customer data, such as;
- The General Data Protection Regulation (GDPR)
- The Health Insurance Portability and Accountability (HIPAA)
- The Payment Card Industry Data Security Standard (PCI-DSS)
- the California Consumer Privacy Act (CCPA).
Companies that gather data on European Union (EU) citizens and residents are required under GDPR to implement a reasonable level of data protection. The GDPR and the CCPA are the two most well-known legislations, however, data protection from cyberattacks laws exist in at least 25 states, affecting both privately and publicly held businesses.
In the previous 12 months, 35% of American families have had a data privacy issue, such as identity theft, data theft, or computer infection. Customers believe that businesses are vulnerable to cyberattacks in 69% of cases. When determining which organizations to trust, almost 70% of co look for honesty and openness when it comes to their personal data.
Companies clearly bear a significant amount of responsibility for not only protecting their customers' data but also for sharing their strategy. The ability of a corporation to safeguard customer data is critical to building trust and maintaining customers.
What is defined as customer data?