Three Actionable Tips on Data Privacy and Security

Quick and easy things you can put in play to protect your business and your customers.

Data privacy is increasingly crucial for small businesses due to evolving regulations. It helps protect customer information, maintain trust, avoid legal repercussions from data breaches, and ultimately enhance a company's reputation -- especially as consumer awareness around privacy concerns grows significantly. 

According to recent news reports, AT&T, a major company based in Dallas, experienced a significant data breach in April 2024, affecting millions of customer accounts and leading to multiple class-action lawsuits due to the scale of compromised personal information.  The impact affected millions of current and former AT&T customers which had their personal data leaked, resulting in multiple class-action lawsuits filed against AT&T.

AT&T is anything but small, but if a company this size can be breached, smaller companies are even more vulnerable. It matters more than ever to think seriously about how to protect your business and your customers.

Data Privacy and Security is Essential

• Regulatory Compliance: New and stricter data privacy laws like GDPR and CCPA are being implemented globally, making it mandatory for businesses of all sizes to handle customer data responsibly, or face potential fines and legal issues.
• Customer Trust: Customers are increasingly prioritizing privacy and are less likely to do business with companies that don't demonstrate a commitment to protecting their data, potentially leading to lost sales and brand damage.
• Reputation Management: A data breach can severely damage a small business's reputation, especially if sensitive customer information is compromised, leading to negative publicity and loss of credibility. 
• Competitive Advantage: By prioritizing data privacy, small businesses can differentiate themselves from competitors and attract customers who value data protection. 
• Financial Implications: Costs associated with data breaches, including legal fees, customer compensation, and damage control, can be significant for small businesses, making proactive data protection crucial.
• Cybersecurity Concerns: Small businesses are often attractive targets for cyberattacks due to potentially weaker security measures, making data privacy practices essential to mitigate risks. 

When you prioritize data security, you will also build trust with your customers. That translates to loyalty and sales. Here are 3 actionable tips to start working on today.

Tip 1: Lock Down Your Data Like It’s Cash

Actionable Recommendations

• Password Hygiene 101. Strong, unique passwords for EVERYTHING, plus two-factor authentication wherever possible. Consider a password manager to help.
• Software Updates. Don't ignore those pesky update notifications! They often include crucial security patches.
• Secure Wi-Fi. Change the default router password, use strong encryption (WPA3 if possible), and consider a separate guest network.

Controversial Thought: "But I'm too small to be a target!" Nope. Small businesses are prime targets because they often lack the resources to defend themselves.

Tip 2: Be Transparent, Not Creepy 

Actionable Recommendations

• Privacy Policy. Have one, make it easy to understand, and actually follow it!
• Data Collection. Only collect what you need and be upfront about why you're collecting it.
• Opt-Ins. Don't assume consent. Get explicit permission for marketing emails, etc.

Controversial Thought: "Data is the new oil" is a dangerous mindset for small businesses. Focus on building trust, not stockpiling data you may not even use.

Tip 3: It Takes a Village (and Maybe a Pro)

Actionable Recommendations:

• Employee Training. Everyone needs to understand basic data security practices. Make it part of onboarding and have regular refreshers.
• Third-Party Vendors. Do your due diligence before sharing customer data with any third-party service.
• Consider a Consultant. If it's overwhelming, a few hours with a data privacy expert can save you major headaches down the road.

Controversial Thought: "I can't afford a data breach, but I also can't afford a consultant." That's like saying you can't afford car insurance until you get in an accident. Prevention is always cheaper than the cure.

Conclusion 

Even if you cannot make a major investment in data security, at least take as many small steps as possible. Your data is as valuable as cash, so lock it down and be mindful of what’s at stake. And remember, data security isn’t just about compliance; it’s about respecting your customers and building a sustainable business.

For more insightful data privacy and security tips to help grow your business, catch up on all the live stream podcasts, Ready. Set. Action., hosted by Kristina Witmer and Debra Horowitz. Fuel your marketing and sales engine with actionable insights and expert advice! We're passionate about empowering businesses like yours to thrive in today's dynamic landscape. This podcast is targeted to small and mid-sized businesses looking to elevate marketing and sales. Whether you're a seasoned marketer or just starting out, you'll find valuable content tailored to your needs.

Contact us for a chat, no sales pitch. With more than 14 years in digital marketing, Witmer Group can help you with all of your digital marketing efforts. Give us a call to discuss what we can do for you.