Why Privacy Is Not Dead For Your Customers
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Transcript of Why Privacy Is Not Dead For Your Customers
Why Privacy Is Not Dead For
Your Customers
Fatemeh Khatibloo, Senior Analyst
March 6, 2014
© 2014 Forrester Research, Inc. Reproduction Prohibited 2
Agenda
› Privacy’s Not Dead, No Matter What You’ve Heard
› The New Privacy Is All About Context
› Getting Started With Contextual Privacy
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 3
Agenda
› Privacy’s Not Dead, No Matter What You’ve Heard
›The New Privacy Is All About Context
›Getting Started With Contextual Privacy
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 4
Companies routinely collect more data than they need
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 5
Voluntary “data stewardship” is unreliable
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 6
And they look for ways to protect themselves
#ForrBigData
Source: September 20, 2012, “Understand The State Of Data Security And Privacy: 2012 To 2013” Forrester report
Companies’ privacy approach today is wrong
© 2014 Forrester Research, Inc. Reproduction Prohibited 7
#ForrBigData
What if we changed the paradigm?
Source: September 20, 2012, “Understand The State Of Data Security And Privacy: 2012 To 2013” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 8
#ForrBigData
There are two reasons to
change how we do privacy.
© 2014 Forrester Research, Inc. Reproduction Prohibited 9
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 10
› Regulation is coming, and it’s largely about transparency,
which most firms aren’t set up to do.
› It causes public relations headaches — globally, nationally,
and locally.
› Developers are breaking the advertising ecosystem.
The first is fear: Poor privacy carries risk
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 11
The other is opportunity: Privacy is a differentiator
#ForrBigData
The Body Shop created a
new market category in
sustainable personal health
products.
Milk industry builds trust by
eliminating the use of bovine
growth hormone.
© 2014 Forrester Research, Inc. Reproduction Prohibited 12
Agenda
›Privacy’s Not Dead, No Matter What You’ve Heard
› The New Privacy Is All About Context
›Getting Started With Contextual Privacy
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 13
› Privacy (and its product, trust) is context-dependent:
• People trust banks to “hold” their life savings but may
not trust banks to keep their financial identities secure.
• People trust Amazon.com with home address and credit
card details and to provide targeted recommendations,
but they may not trust it with sensitive health data.
› Privacy must balance consumer desire and
organizational need.
The “new” privacy is all about context
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 14
› Privacy must be redefined to accommodate
smartphones, biometric sensors, geolocation, big data,
and “persistent recognition.”
› Context enables control, choice, and respect by putting
guardrails around:
• Data access and collection.
• Data use.
• Data sharing.
The “new” privacy is all about context (cont.)
#ForrBigData
•On the day of travel
•90 minutes before my flight
Temporal: When can I collect and use data about you?
•I’m in the airport.
•I’m NOT in the airport.
Spatial: Where can I collect and use data about you?
•For marketing (offers) purposes about this airline
•For marketing (offers) purposes about a partner of this airline
•For informational purposes about my flight, the terminal, and the airport
Functional: How can I collect and use data about you?
•I’m a frequent flyer traveling for work.
•I’m on vacation traveling with my family.
•I’m not the traveler, but I bought travel for someone else.
Identity: What persona are you when I interact with you?
•Let my car service know I’ve landed.
•Tell my personal assistant my flight is delayed, and let him make itinerary changes.
Social: With whom can I share information about you?
Contextual privacy addresses five questions
© 2014 Forrester Research, Inc. Reproduction Prohibited 15
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 16
› Consumers get value in exchange for their data — value they can
control.
• The value exchange will lead to greater trust, more loyalty, and more
willingness to recommend businesses to others.
› Businesses assume less risk and recognize new business
opportunities.
• Better privacy practices reduce data storage risk.
• Businesses can be on the leading edge of privacy-friendly markets.
• The services they offer will be the right ones to the right customers.
The calculus for contextual privacy is simple
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 17
Agenda
›Privacy’s Not Dead, No Matter What You’ve Heard
›The New Privacy Is All About Context
› Getting Started With Contextual Privacy
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 18
› Practice a doctrine of “no surprises.”
• Based on what you’ve written in your privacy policy, would your customers be
surprised at how you use certain data?
• Do you explain what happens when customers opt out?
› Provide a choice for participating.
• Do you provide real options, or is it “my way or the highway”?
• Do you respect DNT headers? Do you make it easy to opt out/down?
› Treat more data as “personally identifiable.”
• Do you define PII? Is your definition too narrow for 2014?
• Do you address “new” types of data like social, device ID, etc.?
Adopt the rules of contextual privacy
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 19
› Unify treatment of customers’ profile data and settings.
• Do their privacy and communications preferences across
different touchpoints and web property silos match or clash?
• Can you implement single sign-on (SSO) to consolidate profiles?
› Consider which pieces of login data expose them and you.
› If you use SSO, consider letting users “uncheck” options.
• Do you really need the blanket right to all data or to post on
timelines?
Leverage identity management
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 20
Begin implementing a four-step road map
› Build a cross-functional privacy task force.
› Create an internal data privacy standard.
› Undertake an enterprisewide data audit.
› Draft a simpler two-tier privacy policy.
#ForrBigData
© 2014 Forrester Research, Inc. Reproduction Prohibited 21
Next Steps
› Follow Fatemeh Khatibloo's blog
› Read a complimentary Executive Overview to see how our playbook framework helps you work step by step through your tough initiatives. Start by viewing all of our playbooks.