Shifting consumer attitudes and new regulations have raised the stakes on personal data protection. Today, privacy is more than a compliance concern—it’s a key opportunity for differentiation. This is particularly true for emerging tech platforms and applications that rely on users’ trust to grow.
Companies need to have a clear privacy strategy in place to establish trust and win consumers’ business. That’s true for any business built on customer data—both tech companies as well as industries in the midst of digital transformation. Our recent report, “Privacy as a Competitive Advantage,” featured four case studies on how tech firms are building privacy into their product strategy. Here are some highlighted best practices that all companies can follow to differentiate on privacy:
Give users agency and control. Concerns over consumer privacy have evolved away from exposure and data collection and toward autonomy, choice, and control, especially as emerging technologies increasingly make assumptions about user intent. Consumers need mechanisms for stating their preferences and intent.
Reveal default settings. Ambient interfaces for emerging technologies like smart speakers and augmented reality (AR) make it harder to dig into settings. Companies should make default settings privacy-protecting from the start. Make defaults clear to users and provide opportunities to change settings from the outset.
Be honest about the business model. Consumers increasingly understand the value exchange for their data—whether it’s improving the service, better targeting personalized recommendations, or subsidizing a free service with advertising. Companies that are honest and upfront about the business model will earn more trust and respect from consumers.
Value changes require culture shifts. Putting privacy first doesn’t happen overnight. Dedicate cross-functional teams to overseeing privacy-centric thinking across the organization. Establish processes and performance metrics that prioritize and value consumer privacy.