With the advent of big data, organizations utilize vast quantities of data about customers’ activities. Some businesses are open about their data practices, while others still prefer to keep their end-users in the dark. These companies have received bad publicity due to the lack of transparency about user data. So, why is transparency essential? In this article at DZone, Shannon Flynn explains how to ensure data transparency.
Data Transparency is Crucial
A growing number of people distrust businesses and do not feel comfortable surrendering their personal data. Companies must, therefore, think of responsible ways to collect data. One such approach is maintaining data transparency. This means organizations must communicate what data they need from consumers and why. Consumers, in turn, will find it easier to trust the company and be more willing to share some data.
Data Transparency Best Practices to Follow
Communicate How You Use Data
“Communicating and collaborating with clients on data transparency helps establish practices that work for the client’s audience as well as developers,” says Flynn. Adhering to transparency practices can lead to greater trust and further engagement. In addition, organizations can offer valuable services in return. Taking a transparent approach will undoubtedly yield better results.
Collect Only the Necessary Data
Software developers are often responsible for ensuring information security. Collecting unnecessary data takes up valuable storage space in servers and adds complexity to the tasks. Therefore, companies must reduce reliance on personally identifiable information. Also, they must avoid using device-tracking cookies.
Create Internal Standards and Policies
Some business leaders are creating new internal standards for data collection and usage. Establishing internal policies will ensure that data is used respectfully across the business. Organizations must comply with laws such as the California Consumer Privacy Act (CCPA) or the European Union’s General Data Protection Regulation (GDPR).
Building trust through transparency takes time and effort. However, it allows enterprises to create a more valuable relationship with customers. Furthermore, you can stay ahead of your competitors regarding marketing return on investment, sales, and revenue. To read the original article, click on https://dzone.com/articles/how-to-ensure-data-transparency-and-why-its-import.