Search
Close this search box.
Search
Close this search box.

How Your Business Growth is Affected by the Privacy Paradox?

Business Growth Affected

Modern online marketing methods use a solid consumer image, and an information network consisting of data brokers and aggregators, websites, trackers, and advertisement networks that collects and stores information about consumers online to enable targeted marketing. However, popular and academic research shows that strategies that are essential for online marketing, such as consumer tracking and data collection are raising consumer concerns.

Predictive technologies and artificial intelligence are becoming common across all industries, allowing us to predict trends, variations in consumer conduct, and the impact of new technologies on strategies for business development. At the heart of this customer growth strategy is data from customers. Being able to interact personally with your customers, sharing information only with those who are interested in them, being able to answer their questions before they are even asked, and offering real value long before the first promotional presentation is made is every marketer’s dream. This requires using a strong internet connection that does not create any lags, or disruptions thereby ensuring accurate and timely collection. Cox internet plans are a good option to consider as they offer a wide range and are economical. Cox is a leading Internet Service Provider (ISP) that takes pride in offering strong internet connections with high bandwidths. A good connection will go a long way for your business.

Managers and customers alike expect a value-creating growth plan to contain only relevant and real-time information, shared exactly the way your customers would like to receive it. However, to do this, customers must give the company access to some chunks of their personal information. This is where the privacy paradox comes in.

What is a Privacy Paradox?

This term was made by Barry Brown in 2001, based on a study conducted on the experiences of those using the internet. Barry discovered that there was a paradox between customers’ concerns about their confidentiality and their wish to continue using the loyalty cards given by supermarkets that could also track their behaviour. This paradox simply states that customers do not trust companies with their data, but they still expect to benefit from a customized experience while shopping.

The biggest problem your customers face is that while they know how valuable their personal information is, they do not completely comprehend its worth. They benefit from doing business with your company; however, there is no palpable experience of sharing their data. Therefore, customers do not feel the impact of the transaction in the same way that they do with a product-related data transfer.

Companies have been gathering and keeping customer data for decades and using it to forecast performance, sometimes to the benefit of consumers but also may be an inconvenience. To protect human privacy rights, many governments and regulators around the world have enacted and implemented data protection regulations and laws that govern how companies must assemble, analyze, store, transfer and terminate personal data to restore the privacy of the consumer.

How does this affect businesses?

Ten years after the technological revolution created by the “digital trinity” of mobility, social media, and advanced analytics, many of us are struggling to remember life before we were constantly connected. These three technologies come together to generate a social upheaval where everything we do is observed, analyzed, and quickly translated into usable information.

The rise of this Trinity is quickening as technologies such as machine learning, artificial intelligence, and so on are amplifying the already enormous power of big data. This undoubtedly produces exhilarating prospects for today’s organizations. However, it also generates risks for those who do not consider the ethical insinuations and the mismatched expectations of intimacy and privacy.

How can businesses work around the paradox?

To address this conflicting viewpoint, some steps can be taken by businesses:

1. Establish guidelines

Even if their use of data is considered legal, enterprises that make use of the data in a way that does not align with their norms or values and customer expectations, run the risk of losing their customer base and damaging the company image.

Customers may assume organizations use their data to meet their needs, but they also expect them to not disclose that information.

This is particularly true for businesses whose business plans depend on the readiness of their customers to voluntarily provide information.

People may be reluctant to share their details with companies that use them in ways that seem manipulative or intrusive. Creating a structure that ensures the ethical use of data can be a key differentiator and competitive advantage for today’s data-driven businesses.

2. Transparency

Establish an audit committee, aligned with the company’s mission and brand, and comprised of relevant company stakeholders, to support projected data projects. Depending on the company, the data sources, and the particulars of the projected project, the board may also include third-party stakeholders, such as customer representatives.

3. Information governance

Information management or governance must evolve from being the responsibility of a few log managers to an essential part of all processes supported by a company. These efforts should include usage policies, security, risk management, and executive oversight.

4. Give control

It is essential to give your customers some degree of control over how their data is collected and used. This should contain an easy and clear way to opt-out if the user chooses to do so. This also means that they will be compensated if the data collected is incorrect.

Conclusion

 

Organizations must manage their data usage just as they would any other business-critical asset. The objective of this is to protect the company’s brand, prevent disruption to consumers, and optimize their relationships.


Subscribe to Our Newsletter

Related Articles

Top Trending

Transition Your Business to Web3
How to Transition Your Business to Web3 Successfully
Decentralized Jobs with DAOs
The Future of Work: How DAOs Are Creating Decentralized Jobs
Cosmic Values
Cosmic Values: Value List for Pet Simulator X in 2025
Jada Pinkett Smith net worth
How Jada Pinkett Smith Built a Net Worth of Over $50 Million [Detail Guide]
cicely yasin bernhard
Cicely Yasin Bernhard: An American Actress, Singer, and Voice Artist

LIFESTYLE

summer birthday party ideas
Creative Summer Birthday Party Ideas for Kids in 2025
May 6 Zodiac
May 6 Zodiac: Positive Traits, Compatibility and More about Taurus
self storage solutions for life transitions
How Self Storage Can Help During Major Life Changes (Divorce, Moving, etc.)?
why is my poinsettia dying
Why Is My Poinsettia Dying? Tips To Revive Your Wilting Poinsettia Plant
crypto retirement plan strategies
7 Ways Crypto Can Reshape Your Retirement Plan for the Future

Entertainment

Cosmic Values
Cosmic Values: Value List for Pet Simulator X in 2025
Jada Pinkett Smith net worth
How Jada Pinkett Smith Built a Net Worth of Over $50 Million [Detail Guide]
cicely yasin bernhard
Cicely Yasin Bernhard: An American Actress, Singer, and Voice Artist
benny blanco net worth
Benny Blanco Net Worth: A Closer Look at His Wealth and Assets
Trump Tariff on Foreign Films
Trump’s 100% Movie Tariff Plan Shakes Hollywood in 2025

GAMING

Cosmic Values
Cosmic Values: Value List for Pet Simulator X in 2025
GTA 6 Release Date
GTA 6 Release Date Confirmed: Rockstar Sets May 2026 Launch
Common Mistakes New Streamers Should Avoid
10 Mistakes New Streamers Make (And How To Avoid Them)
Now.ggroblox
Play Roblox Online With Now.ggroblox Browser For An Ultimate Gaming Experience
Digital Ownership Lesson Gamers
The Digital Ownership Lesson Gamers Already Learned

BUSINESS

Transition Your Business to Web3
How to Transition Your Business to Web3 Successfully
How to Calculate Quarterly Tax Payments
How to Calculate Quarterly Tax Payments in 5 Easy Steps
credit suisse tax evasion
Credit Suisse Fined $511M for U.S. Offshore Tax Evasion Scheme
Trump Tariff on Foreign Films
Trump’s 100% Movie Tariff Plan Shakes Hollywood in 2025
executive finance education lbs cfo course
How London Business School’s CFO Course is Redefining Executive Finance Education?

TECHNOLOGY

How Web3 Is Enabling Decentralized AI Networks
How Web3 Is Enabling Decentralized AI Networks
OpenAI Windsurf Acquisition
OpenAI Acquires Windsurf for $3B to Boost AI Coding Capabilities
How to Spot and Avoid Web3 Ponzi Schemes
How to Spot and Avoid Web3 Ponzi Schemes
Acer Predator Helios 500 17 AMD Laptop Review
Acer Predator Helios 500 17 AMD Laptop Review, Specs, Tests, and Prices
NFC Technology
What is NFC Technology?

HEALTH

Connection Between Hydration and Urinary Health
The Connection Between Hydration and Urinary Health
Neuralink Brain Implant Patient Regains Speech
Neuralink Brain Implant Helps ALS Patient Regain Speech with AI Support
Wegovy for Weight Loss
Wegovy for Weight Loss: Is It Worth Buying Online?
Role of Sperm DNA Fragmentation Testing in IVF
The Role of Sperm DNA Fragmentation Testing in IVF with ICSI Success
Online Yoga Certificate Course
Why an Online Yoga Certificate Course is the Key to Advancing Your Practice