Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. From Big Data to IoT to Cloud Computing, Newman makes the connections between business, people and tech that are required for companies to benefit most from their technology projects, which leads to his ideas regularly being cited in CIO.Com, CIO Review and hundreds of other sites across the world. A 5x Best Selling Author including his most recent “Building Dragons: Digital Transformation in the Experience Economy,” Daniel is also a Forbes, Entrepreneur and Huffington Post Contributor. MBA and Graduate Adjunct Professor, Daniel Newman is a Chicago Native and his speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
- Bose was sued in 2016 for selling metadata on audio files its users listened to without informing them. The suit claimed the information could reveal personal details about the listeners, for instance, their political leanings, culture, or personal interests. Damages are expected to exceed $5 million.
- In an ironic case, me—a company that supposedly helps protect users from spam overload by automatically cleaning up their inbox—was found to have screened user inboxes and sold information on competitors to Uber in 2017. Apparently, once they had the license to enter the inbox, they couldn’t help but take a peek at what other valuable data was in there. The company was hit with a privacy suit over selling user data.
- The maker of a “smart” sex toy paid $3.75 million in a lawsuit after it was found to have been pulling data from its user apps about how and how often users were using the device.
Survey Says: Honesty is the Best [Transparency] Policy
There’s even data to prove it. Research from Harvard Business Review found that customers who were offered full transparency (how and why their data was used)—and control (the ability to decide if or how much they were will to share)—did not punish companies if their data was breached. On the other hand, if a breach occurred and the customers didn’t know that their data had been mined and hacked—the damage was far-reaching. In fact, even rival companies associated with the breached company averaged $8 million in losses. Turns out privacy—like data—is also big business. Yet, research shows just 10 percent of Fortune 500 companies are offering both transparency and control to their customers when it comes to “data brokerage.” Why?
Explain and incentivize: Smart automobiles have been jumping onto cellular networks this past year even more often than cell phones—and with them, a whole lot of driver data. But as one smart car driver said—it makes no sense for a driver to pay extra to connect to a cellular data service if the car company itself is going to be making money from the data pulled from it. To avoid a customer backlash, take proactive steps to reward them for the information they share. After all—you’re the one gaining from it.
Don’t be sneaky. Yes, many companies technically reveal the fact that they collect and sell customer data—in small print at the bottom of a log-in page. But in many cases, customers are opting-in to sharing without even realizing it, subjecting themselves to a well of personal data being mined from their phone, search history, driving schedule, etc. If you do wish to mine incredibly personal information, shout it from the rooftops. Make it known! Your customers will respect you more for it.
Think big picture. Remember: all the information you gain is fair-game for hacking. It’s your responsibility to protect it. If you fail to, not only will you lose your data mine, you’ll lose your customers, as well.
This article was first published on Futurum Research.