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4 Reasons Why Protecting Customer’s Personal Data is Vital

by Maria Berg

Data is one of the most valuable resources for companies. Businesses and their clients want to know how their personal information is handled, hence, the need for data protection and privacy. Data protection refers to the measures a company takes to prevent loss, theft, mismanagement, and corruption of customer data.

4 Reasons Why Protecting Customers Personal Data is Vital

Back in the day, data breaches were not a cause for concern as it is today because there were few ways one could use data against a person. However, with technological advancements and the number of online hackers rapidly increasing, data protection has become a topic of concern. Therefore, businesses have to ensure the information provided by their customers is well protected and used only for its intended purpose.

1. Secure Customer and Public Trust

Clients quickly lose trust in an organization that has experienced these data breaches. Such customers are quick to take their business somewhere else where their data is more protected and needs to be met easily. It also becomes difficult to gain the trust of other potential customers if an organization lacks proper implementation methods for data protection.

Loss of trust by the customer subsequently results in lower profit margins and slow growth for a business. Choosing to do business means developing trust between a company and its clients. Data protection is a priority that all businesses should undertake to build long-term relationships with their clients.

2. Gain Competitive Edge

An organization willing to take the necessary measures to protect its customers’ personal data gain a competitive advantage over its competitors. Today’s world is more digitally connected than ever, and more households tend to have an online presence. However, these households express concern over online privacy and security and the actions undertaken on the internet.

Surfing the net always leaves a footprint on sites visited when online. Leaving a digital footprint is unavoidable.

Organizations that reassure their clients of the privacy of their information have a competitive difference over those that do not make data protection a priority.

3. Protects Against Identity Theft

The lack of a firm privacy policy and data protection measures makes it easy for cybercriminals to steal customer information and use it as they please. Such cybercriminals also have the potential to use such information to engage in illegal acts that diminish and risk the reputation of the customers and that of the business. Consequently, most companies opt for cyber security staff augmentation. Doing so helps connect them with someone who better understands potential cybersecurity risks, establish necessary sustainable protocols, update company policy, and set up relevant security tools.

Customers lose confidence in the business and may switch to other providers to avoid future risks. In the past, many small and big firms have not implemented comprehensive security control measures for personal data. This has resulted in numerous data breaches that have affected data subjects and associated businesses that have spent time and money counteracting identity fraud claims. Implementation of security controls and firewalls should be prioritized to avoid unnecessary data breaches with negative impacts on customers and businesses.

4. Save Unnecessary Costs

If inadequately prepared when hit by a data breach, an organization is likely to suffer considerable loss in finances and resources, affecting the operations of a business. Cybercriminals may hack a business’s financial information, resulting in substantial financial losses. It would also require spending an unbudgeted amount of money to salvage the situation and restore normal business operations.

Small companies suffer the most from data breaches because they are unprepared for such hits or lack the necessary finances and resources to resolve the violation. Customers are also unwilling to stick with a company that experiences occasional data breaches that are not solved quickly. Customer data is a business asset; therefore, time and the initial cost of implementing security data controls should be considered.


Individuals value privacy. Companies of the 21st century have failed their customers more than ever when it comes to data protection. Customers are reluctant to share personal data with companies that sell such information and cause them harm. Customers’ privacy should be prioritized since the customer’s needs always come first. Protecting customer personal data also protects the company’s information. Big or small companies should be prepared for data emergencies and disasters. Implementing proper data protection measures will keep customer data safe from cyber-attacks and thieves.

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