Companies also dig deep into their customer service records to see how customers have interacted with sales and support departments in the past. Here, they are incorporating direct feedback about what worked and what didn’t, what a customer liked and disliked, on a grand scale.
Besides collecting information for business purposes, companies that sell personal information and other data to third-party sources have become commonplace. Once captured, this information regularly changes hands in a data marketplace of its own.
Turning data into knowledge
Capturing large amounts of data creates the problem of how to sort through and analyze all that information. No human can reasonably sit down and read through line after line of customer data all day long, and even if they could, they probably wouldn’t make much of a dent. Computers, however, sift through this data more quickly and efficiently than humans, and they can operate 24/7/365 without taking a break.
As machine learning algorithms and other forms of AI proliferate and improve, data analytics becomes an even more powerful field for breaking down the sea of data into manageable tidbits of actionable insights. Some AI programs will flag anomalies or offer recommendations to decision-makers within an organization based on the contextualized data. Without programs like these, all the data captured in the world would be utterly useless.
Privacy regulations.
European Consumer Privacy Act
The European Union’s General Data Protection Requirements (GDPR) lays out the rules of data capture, storage, usage and sharing for companies. GDPR regulation and compliance doesn’t just matter for European countries – it’s a law applicable to any business that targets or collects the personal data of EU citizens.
California Consumer Privacy Act
Data privacy has made it to the U.S. in the form of the California Consumer Privacy Act (CCPA). The CCPA is similar to GDPR regulation but differs in that it requires consumers to opt out of data collection rather than putting the onus on service providers. It also names the state as the entity to develop applicable data law, rather than a company’s internal decision-makers.
Virginia Consumer Data Protection Act
On January 1, 2023, the Virginia Consumer Data Protection Act (VC DPA) will go into effect. As with the CCPA, the VC DPA will put the onus on consumers to opt out of companies processing or selling their data. The VC DPA will also require companies to store only data relevant to their goals and then delete that data once the goal has been achieved. Any companies to which the VC DPA applies must inform consumers of their rights under the law and how to exercise them.
Colorado Privacy Act
On July 1, 2023, the Colorado Privacy Act (CPA) will go into effect. As with the CCPA and the VC DPA, the CPA requires consumer opt-out. The CPA covers targeted advertising and certain types of data-based profiling as well. Data-holding entities will be required to address consumer requests within 45 days and display privacy notices on their websites.
The same may be true for any free app. That’s a reason to avoid free apps or limit your free app usage to solely those from reputable companies. For example, the free Slack mobile app is probably fine since you can pay for Slack. But some random free gaming app with no paid option might be selling your data.
Sign up for unimportant memberships with fake information. Nobody would tell you to use a fake name, phone number or address for, say, your health insurance plan. But that’s a trusted and necessary service with a revenue stream independent of your personal data. On the other hand, non-essential services – say, a streaming subscription – might sell your name, phone number and address data. Using fake information can protect your data in this case.
Avoid linking your apps. Connecting your personal apps can make them more convenient to use, but these apps will also share your data with one another. See if you can go without connecting apps so that you don’t build more bridges from your data to businesses.
The future of business data use
Data privacy regulations are changing the way businesses capture, store, share and analyze consumer data. Businesses that are so far untouched by data privacy regulations can expect a greater legal obligation to protect consumers’ data as more consumers demand privacy rights. Data collection by private companies, though, is unlikely to go away; it will merely change in form as businesses adapt to new laws and regulations.
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