Guest Post: Privacy-First Positioning For Business Owners

Tips for earning the trust of consumers and customers by embedding data privacy and security in your business culture

The use of consumer data by companies is now widespread – whether it is part and parcel of a core services offering, or as an element of a general marketing strategy.  But, as the use of data has increased, so have regulations intended to protect consumer data privacy.  Since 2018, a patchwork of privacy regulations has emerged at home and abroad.  In addition to the EU’s General Data Protection Regulation (GDPR) and  California Consumer Privacy Act (CCPA); Colorado, Virginia, and Utah have all recently passed general consumer privacy statutes.  

As regulators struggle to play catch-up with innovation, consumer expectations have evolved.  More educated than ever about their rights with respect to the use of data privacy and security, consumers now have both the will and the skill to challenge companies about their privacy practices.  Companies that misuse consumer data – whether because of ignorance or negligence – will be judged harshly by the court of public opinion.

Why is data privacy important? Positioning for privacy is key to establishing and maintaining strong relationships with consumers and clients.  For B2C companies, it is critical to establish a transparent social contract with consumers that governs the use of data.  B2B companies need to feel confident that their counterpart is credible and trustworthy – that their corporate culture is strong enough to fend off an above-the-fold privacy mishap.  

With these actions, companies can take steps to ensure that privacy and security considerations are firmly embedded in the company’s DNA and culture:

1. Rally the Troops.  A top-down, centralized approach to privacy will not be successful.  Privacy positioning is a cross-functional effort that requires the buy-in of employees across an organization.  Create a “privacy all-stars” team. Encourage your employees to identify client and customer privacy concerns and provide a framework to resolve these concerns expeditiously.  Front line employees are often critical to identifying market weakness.  Many Chief Revenue Officers, for example, become the unlikely champions of privacy positioning, as they are uniquely equipped to understand changing market pressures.

2. Train Employees.   Train employees in the basics of consumer privacy and security.  Many employees do not realize that the scope of “personal data” has changed significantly in recent years to include online identifiers (i.e., IDFA and AAID) and IP address.  Operating under the mistaken belief that “personal data” refers only to attributes like name, email, and SSN, these employees confidently tell clients and customers that the company does not collect or use any personal data, when in reality, it engages in marketing practices that make use of personal data.  The Future of Privacy Forum offers a variety of resources to help teams understand and implement best practices for data privacy training in a complex technological environment.

3. Verify Vendors.  Every day, our employees rely on a variety of business tools that enhance productivity, while simultaneously gaining access to vast pools of personal data belonging to employees, customers, and clients.  Vendor relationships are weak links in a company’s privacy strategy and are often the source of data leaks.  Establish a system for tracking vendor contracts and identify an individual to perform basic due diligence on each vendor relationship.  At a bare minimum, ask each vendor:
   
   What personal data of the company (and/or its clients) will they have access to?

   For what purposes will they use this data?

   What are their data deletion and opt-out policies?

4. Post a Privacy Policy.  Have a public-facing privacy policy on your website that describes the company’s use of personal data for marketing purposes, and as applicable, the use of personal data in the company’s core service offerings.  Be clear and coherent in describing your business practices.  Minimize the use of acronyms and include a glossary if you use industry-specific jargon.  Include a designated email address for consumer questions (e.g., privacy@company.com).

5. Create “ELI5” One-Sheets.  Work with your marketing team to create simple, clean one-sheets that describe your approach to consumer privacy.  If you run a business that relies heavily on the use of consumer data to power its products or services, describe how you collect and use that data.  If you are a B2B company, add a one-sheet as a cover sheet to your MSA.  “Explain it to me like I’m 5” – transparency wins the day in gaining and maintaining consumer trust. 
   
   

By building strong internal and external privacy foundations, companies establish trust with clients, consumers, and regulators.  This creates a firm position from which companies can weather the mounting storm of consumer advocacy, increasing regulation, and technological innovation.  Ultimately, positioning for privacy is a strategic exercise designed to help companies keep pace in a rapidly changing environment.

Tiffany Morris Palazzo is the CEO and Founder of Pragnetic Partners, a firm that provides fractional GC’s and COO’s for rapid change environments. Tiffany has 15+ years of experience working with emerging and established technology companies, entrepreneurs and venture capitalists.  Prior to founding Pragnetic Partners, Tiffany counseled leaders and boards at MDC Partners (now Stagwell), Vox Media, the New England Patriots, the Kraft Group, and Lotame.

Tiffany received a BA, magna cum laude, from Wellesley College and a JD from Boston College Law School. A Midwest transplant, Tiffany lives in the greater Washington D.C. area with her husband and two daughters. Outside of work, Tiffany is an amateur architecture and design enthusiast with a penchant for Haribo gummies.