In a data-driven era, requesting personal information from anyone is a big ask. Consumers want to know that the data they give a business will be properly protected and handled with care.
When a business can deliver on that expectation, it encourages customer trust and cultivates a sense of loyalty and respect. Patrons come to see a brand as an entity that they can confidently interact with without risking their own personal safety.
If your company handles sensitive data on a regular basis, it’s important to set up the right procedures and infrastructure to keep things safe and secure. Here are a few ways you can improve your data management practices to build consumer trust.
1. Reduce the Number of Touchpoints for Data Management
If consumers need to submit various forms of data through multiple portals, platforms, and applications, it can undermine their trust. When it comes to collecting sensitive customer information, using fewer touchpoints is always better.
According to income and employment verification platform Truework, a recent partnership between Transunion and Truework will demonstrate an example of this concept in action. “Traditionally, when consumers apply for a loan, lenders need to gather separate information regarding an applicant’s credit history, income, and employment. Our partnership creates a single touchpoint where lenders can gather data with an applicant’s permission,” Truework says.
Whenever you can keep data collection centralized like this, it avoids bombarding consumers with too many requests for sensitive information. This keeps the transfer of data streamlined, simple, and trustworthy.
2. Only Gather Essential Data
Data has become a valuable commodity for businesses of all kinds. This makes it tempting to gather data of all kinds, regardless of its immediate value or utility.
However, CMSwire points out that hoovering up as much data as possible isn’t a great strategy. Not only does this mean you have more information to protect and a greater chance of exposure. Many states and regions are also creating laws surrounding data.
California, Virginia, Colorado, New York, and Illinois, for instance, have all passed privacy and information laws of some sort or another. These are making data management more restrictive. The more data you choose to collect, the easier it is to cross a line.
Instead, assess your data needs. Then collect only the data you require to run your business. To be clear, the amount of data you request from customers can increase at times. Just make sure every kilobyte that you collect has a purpose.
3. Keep Your Data Organized
Disorganized or uncategorized data is an invitation for chaos. It turns invaluable information into dark data lakes with limited value and plenty of unnecessary risks.
UpGuard lists the organization and classification of data as its number one best method for protecting sensitive data. The cybersecurity company points out the benefits that come from organized data.
For instance, that makes it easier to know what data you have, where to access it, and how protected it is. Proper organization also allows you to flag certain data as extra sensitive and in need of greater security.
Don’t ask consumers to dump their data into a chaotic mess. If you are going to handle customer data as a business, make sure you’re keeping everything organized and categorized.
4. Train Your Staff to Handle Data Properly
You can invest in a clean, organized data management process. If your team can’t maintain that process, though, it’s going to become disorganized over time.
That’s why ongoing staff training is essential. You need to keep everyone up to date on your data management best practices, especially as it pertains to each role that they fill.
The Privacy Technical Assistance Center makes the important point that this doesn’t start with the training itself, but with awareness. You must make sure that your employees grasp the importance of quality data management and how that impacts consumer trust.
From there, you must train your employees to handle data based on your business’s activities. Some of this is general information for everyone, such as encouraging digital hygiene and posting data security reminders.
Other aspects are role-specific. For example, equip remote workers with the tools and knowledge to stay safe while working away from the office. Also, train those actively handling customer data to use data management tools correctly — and keep them up to date with upgrades and changes over time.
Building Consumer Trust Through Data Management
These are a few of the larger concepts that you should keep in mind when considering data management best practices. Of course, there are many other practical ways to keep data clean and secure, as well, from encryption to firewalls to strong passwords and multi-factor authentication.
The important thing is that, as you implement various data management measures, you only collect essential data using a minimal number of touchpoints. Keep this data clean and organized, and make sure your staff understands how to handle it.
If you can do that, you can create a data-driven business with a confident, trusting customer base that knows you will handle their information with care.
