Data plays a crucial role in today’s business landscape. Still, with the increasing threat of data leakage and customer concerns about data privacy, it’s more important than ever for companies to prioritize their data strategy. Businesses must take a proactive approach to data ownership and management, with a clear understanding of how their data is collected, stored, and used. In the new year, make it your resolution to focus on your data strategy and protect your customers’ privacy. In this article, we’ll explore why data strategy should be a top priority for businesses and how to start creating a solid data strategy.
Advancements in technology and consumer preferences are transforming how companies collect and use data. Businesses use data to understand consumer behaviour, improve engagement, and personalize campaigns on a scale never seen before. Businesses need to be agile in collecting customers’ data and securely storing and using it, with customers spending more and more time on their mobile devices. Many businesses have used digital data collected from clients to transform their business practices, none more transformative than Amazon. Amazon has used data collected from its customers to personalize recommendations, improve search results, and optimize pricing. The company also uses data to understand customer behaviour and preferences, which has helped it to develop new products and services.
Data Depreciation and First-party Data
Privacy concerns are causing consumers and regulators to restrict the collection and use of third-party data, e.g., Cookie Apocalypse and Google’s Universal Analytics abandonment in 2023. Apple’s ‘Ask App Not to Track’ feature also impacted this. Users’ digital footprints are more fragmented across devices and channels. Businesses need help getting more explicit pictures of customers; this is where first-party data becomes so poignant for companies. Caldere can implement often-used CRM systems or referral programs that comprehensively view the customer journey. These solutions effectively identify customers and prospects at different touchpoints along their journeys beyond what third-party data offers.
We can use data to understand consumer behaviour in real-time, and it helps businesses make more informed decisions about targeting customers based on their digital behaviour over time. Businesses must develop and implement a data strategy to gain the trust and understanding of consumers who do not want to avoid tracking and want more customer data transparency.
Data Leakage and Its Consequences: Why Businesses Need to Develop a Solid Data Strategy
Data leakage happens when confidential data is released outside a business’s security perimeter, making it public. This could cause financial losses, damage to reputation, and potential legal liabilities. This could result in financial losses, damage to reputation, and possible legal liabilities. Customer engagement can be improved by personalization and targeted messaging, and you can achieve this by analyzing what customers have purchased, subscribed to or commented on.
The eruption of data has bought increased complexity and security issues, especially regarding data ownership. It’s a problem that can lead to brand reputation damage, legal issues, financial loss and more. Businesses must maintain control over their data while getting the best possible insights from their customers. That’s where developing a solid data strategy comes in, and this is the best way to build consumer trust. Use a data strategy to align business goals with data management objectives and achieve them. Review this strategy regularly, making January the perfect time to consider why data strategy should be your New Year resolution!
How to Reduce Data Leakage
Reiterating, businesses must have a data strategy to gain trust and understanding with consumers who dislike being tracked but want more transparency. Malicious insiders or third-party vendors may leak data outside a business’s security perimeter, giving anyone access to it. This could result in financial loss, damage to reputation, and potential legal liability.
Data leakages, like Yahoo and American Airlines, leave a negative impression on consumers, reminding them that they want more control over their data. Marketers and advertisers must reassure consumers that they are using their personal information correctly and that data leakages will not occur.
To prevent data leakages from happening, businesses need a comprehensive data strategy.
Manage their digital footprint across all channels to protect against external threats. Mitigate internal risks such as insider threats and accidental disclosure by employees. This can occur when employees aren’t aware of sanctioned security protocols when handling sensitive information.
It’s time to get serious about data strategy, and here at Caldere, we can get you on the right track. Ready to put it at the top of your agenda for 2023?
The future is here; let’s embrace it together, and if you’re ready to consider why data strategy should be your New Year’s resolution, let’s start a conversation here.
