Consumer data should be sacrosanct. And in this age of digital marketing, there is a balance to be maintained in communicating effectively with customers while protecting their privacy and, at the same time, complying with privacy regulations. In today\u2019s data-driven world, a goal for marketers should be to choose tools that help them to prioritize privacy. Hashing algorithms are one way to do that. <\/p>\n
Hashing is the process of generating a value from a text input using a one-way cryptographic algorithm that enables the security of consumer information and data. That one-way function means that personally identifiable information (PII) \u2013 any data that could potentially identify a specific individual \u2013 is not visible based on the hash code. As a result, the raw data or PII associated with a consumer remains private, as it should be. The consequences of not ensuring consumer privacy are not only an erosion of trust in the brand, there is a quantifiable impact to a business\u2019 bottom line. According to one study, 48% of consumers<\/a> stopped buying from a company over privacy concerns. <\/p>\n Building trust through technology<\/strong><\/p>\n Brands that take consumer privacy seriously have more satisfied customers and deeper loyalty. With that in mind, here are some practical steps a company can take to honor the privacy of their customers and their partners. <\/p>\n Provide clear guidelines on PII. The next step is applying an effective layer of security. In addition to increasing consumer trust by being 100% transparent about data usage, companies that deploy hashing technology can ensure optimal levels of security. The hash code that results from a hashing algorithm is like a message fingerprint of the text input. It has a fixed length and will vary widely with small variations in input. Because these algorithms are one-way functions, it becomes nearly impossible to determine the original input based only on the hash code. Hashing algorithms power the security behind such services as internet banking, enabling the providers to receive data in a way that protects consumer privacy.<\/p>\n Honoring consumer privacy and understanding consumer preferences are the most critical parts of providing an exceptional customer experience. When a business chooses tools that protect customer privacy, they are also securing the trust that their customers have put in them. Alternately, ignoring the privacy concerns of customers has been shown to be costly, with 87% of consumers<\/a> taking their business elsewhere if they don\u2019t trust a company is handling their data responsibly<\/p>\n Honoring consumer privacy with data vigilance<\/strong><\/p>\n Responsible companies view consumer privacy and data security from both sides of the equation: as a business and a customer. If the customer wins, the company wins.. And that is no easy feat for a company trying to stay ahead of regulations and navigate today\u2019s increasingly stringent standards. As we wrote in Customer Think<\/a> earlier this year, not only can there be significant penalties for not complying with privacy regulations, but studies have shown that consumers are becoming more concerned about how their data is being used. <\/p>\n
\nProvide consumers with more control over their data. Request permission to use consumer data for a specific purpose and only use it for that purpose.
\nAllow consumers to remove themselves from your database (stipulated in the CCPA for CA residents, but a good practice in every state).
\nInvest in data and security solutions that will protect your brand and your customers.
\nApply \u201cThe Golden Rule of Data\u201d in every case. In other words, use customer data only as you would want your own data to be used.<\/p>\n