Click here to get this post in PDF
Today, customer data is one of a firm’s most valuable assets. Why? Because it allows companies to gain a deeper understanding of their customers’ wants and needs. However, before collecting, using, or generating revenue from this type of data, businesses must first ensure compliance with all data regulations. This is because cybercriminals who get ahold of customer data can use it to infiltrate customers’ accounts or steal customers’ identities. Here are a few tips for effective data collection practices to help you stay on the right side of the law.
Upgrade cybersecurity systems
As per the IBM Cost of a Data Breach Report, the average cost of a data breach was $4.35 million in 2022, which is up by 2% from $4.24 million in 2021. To keep from incurring such expenses and maintain the security of client information, you must upgrade your cybersecurity systems as needed. In addition, keep existing solutions up to date and regularly perform IT security audits to spot and address IT vulnerabilities as soon as possible.
Invest in cybersecurity training programs
Staff members are often the weakest link in an organization’s IT security chain because they tend to lack awareness of cybercriminals’ latest tricks. However, by educating your personnel in data privacy, you’ll turn them into your first line of defense against data breaches. In addition, they’ll understand the regulations and know how to enforce the protocols for safeguarding customer information.
Be transparent about data collection
You must be forthcoming with your customers about how you obtain their data and what you do with it. This entails creating clear privacy policies, letting customers choose the information they provide, and explaining how their information will be utilized.
Temper your data collection efforts
Did you know that out of all the data companies collect from customers, around 60-73% of that isn’t actually used once it’s time to analyze data? It’s simply information overload — analysts drown in data while managers become too overwhelmed to make proper decisions. To avoid being deluged with data, organizations would do well to ascertain the following:
- Customer data they really must obtain
- How the data supports the organization’s goals
- How the data will be analyzed and synthesized
- How data such as customer feedback can make the organization do better
Hedge against data erasure and corruption by backing your data up
If you lose your data due to cyberattacks, natural catastrophes, or IT failures, among other events, all of your customer data gathering efforts will be for naught. This is why it’s critical to have a solid backup and recovery strategy in place for your company.
Encrypt or redact customer data as needed
As soon as you collect customer data, you’ll want to encrypt or redact it so that even if it falls into the wrong hands, such sensitive data will remain unreadable or unusable.
Customer data collection and analysis play significant roles in your organization’s overall marketing efforts. Ensure secure data collection by availing of managed IT services Orange County.
You may also like: 6 Clever Things You Could Be Doing With a Customer Data Platform
Image source: Shutterstock.com