What’s more valuable, Coke’s factories or the brand itself? If you chose the latter, you’d be correct.
Brand image is the most important aspect of any business. However, recent data regulations and laws mean brands must tread lightly or risk damaging it.
Businesses must reflect on the imperatives they should have in place in the age of data regulation. These will be vital in protecting not only the data of their clients – but their reputations too.
The Privacy Priority Companies who fail to prioritise data privacy and protection for their business assets—including customer data— could fall into a financial mire.
This will cause severe damage to not just bottom line profits, but their brand reputation.
There is an expectation for businesses to take responsibility for protecting the data of their customers.
Loss of credibility
However, if this expectation is not met, the brand will lose credibility. Public perception, coupled with tighter regulations, are two things businesses need to pay particular attention to.
Even the most iconic brands make mistakes in the data regulation age.
For example, Google’s recent breach of the EU’s General Data Protection Regulation (GDPR) may have set it back $80 million. But what’s worse is the negative impact on public sentiment towards the brand.
These events will become more common in the UK as regulations around data tighten, akin to that of Europe’s GDPR.
Businesses are right to be concerned on a financial level, but they should be more concerned about the loss of trust in the brand.
This will continue to be a key differentiator as consumers become more aware of how their data is being used. This makes it crucial for business leaders sat in every seat around the corporate boardroom table to get involved with this.
The data management imperative
While the fear of breaching new regulations sets in, it’s critical that businesses are set up with the proper systems in place to mitigate the risks like theft and permanent loss of data. Perimeter security will always be a standard method of defence. But, without a backup and recovery system in place, businesses cannot ensure their clients’ data is safe.
Strong data management
This is also integral to the operation of any business. Especially with the proliferation of digital platforms and technologies that utilise personal customer data to provide personalised experiences. Ultimately, it comes down to how well a business can manage the security and privacy of their customer’s data. Without a backup plan, they risk losing both their customer’s data as well as their reputation.
The nexus between data privacy and security
The age of global data regulation is upon us. Businesses have found themselves at the nexus between data privacy and security as they navigate their way through the UK’s evolving regulatory landscape.
Data privacy, whether driven by GDPR or other regulations, should be the cornerstone of a business’s data management strategy.
Businesses that factor in regulatory compliance into their data management strategy will avoid financial and reputational ramifications.
They will also find themselves in almost a data nirvana where they can more effectively and quickly use the data assets they own to gain a key competitive advantage over their rivals.
Looking to the future
In 2019 and beyond, it is the responsibility of all businesses to play the role of the data custodian.
A brand that can be trusted with the data of its clients will always be able to maintain a good reputation.
I believe that you could say with confidence that good data management is, in fact, the key to maintaining brand reputation in the digital age.