We’ve progressed a lot in terms of data privacy in the past decade. This was mainly because people were becoming increasingly worried about how their data was being handled by companies large and small.
Some corporations suffered major data breaches that led to widespread distrust in these companies. Eventually, regulatory bodies started adopting laws and regulations that would protect users and their data.
While many of these regulations were designed to make corporations stop exploiting their users, startups and medium-sized enterprises should adhere to them as well. There have been many concepts and practices to ensure that user data is handled adequately.
Regulatory Compliance
Before we delve into the topic of consent management, it’s important to understand why we need it at all. While there are many advocates for total anarchy on the internet, regulations that protect customers from companies have been shown to be quite important and helpful.
Regulatory compliance is a process that refers to adhering to laws and regulations. Internet-wise, this is a concept that’s applied to restricting companies from exploiting user data directly or indirectly.
An important breakthrough in regulatory compliance has been made by the adoption of GDPR in 2018. This document regulated the circumstances in which companies are allowed to gather user data and how they should do this. Personally identifiable data has become valuable and protected.
Many countries were soon to follow. Pipeda, CCPA, and DPA are some of the other important regulations. However, GDPR is certainly the most impactful. Of course, if you’re not operating in the European Union, you don’t have to worry about GDPR, but you need to ensure that this is certainly not the case beforehand.
In the past, companies were able to use third-party cookies to track you over the course of minutes and days, allowing them to get better insights. This practice was unethical and gave some companies an unfair advantage over others.
Nowadays, data collection isn’t completely forbidden, but the process should adhere to the regulations that apply to your business. To ensure trustworthy data practices, the concept of consent management emerged.
Consent Management Explained
The whole process of users choosing and customizing what consent they are giving falls under the umbrella of consent management. Choosing which cookies users want to leave is one example of proper consent management.
Consent management has been introduced to help businesses do a more transparent and better job of processing user data. Just like some methods that we will talk about later, consent management platforms are a perfect balance of gathering data that’s used to improve operations while maintaining a privacy-first approach.
With a platform that allows you to manage consent, you’re improving compliance while ensuring smooth operations on both the company’s and employee’s side. Data that’s been collected consensually can be later used for personalized marketing campaigns like retargeting and email marketing.
Consent Management Platforms
Consent management as a concept is likely already implemented at your business in some way or another. However, a platform that allows you to have a centralized approach to user data and how is collected significantly improves internal processes.
The advantage of a CMP is that you don’t have to follow and implement regulations manually. Of course, as a business owner, it’s advised that you’re up-to-date with the latest trends, but such software streamlines the process of adapting your data policies based on the latest updates to regulations.
Important advantages can be especially seen in companies that handle confidential and private data, such as healthcare documents. A huge advantage of this type of software is that it automates various compliance-related protocols.
All the unauthorized cookies or third-party scripts that might be running in the background are disabled by CMP, ensuring that your customers are protected even from sources you’re not aware of.
Consent management platforms help you build better relations with your customers. A transparent approach will always be valued by customers, as well as signs that their privacy is being respected. In the long term, the data that’s been gathered can be used to make a better user experience, but you will also be able to boast how you’ve done it ethically.
3 Ways to Implement Consent Management
There are endless ways in which you can make your business and internal practices better. The same rule can be applied to consent management as well.
We’ve already talked about the importance of a consent management platform, but here are more ways to ensure high levels of compliance.
1. Google Consent Mode
As one of the largest IT corporations in the world, Google has a large responsibility to adhere to user privacy. More importantly, their tools are used by tens of thousands of online businesses. Google Analytics and Ads are the most important examples.
Analytics are essential in using your customers’ data to make better business decisions and marketing strategies. This was often based on unethical data practices. However, with the Google Consent Mode, you can now make the most out of both worlds.
This feature is used to protect user privacy on one side, make the most out of implementing marketing practices, and gain insight into customer behavior. Consent mode ensures that the data you’re collecting is based on the consent choice of the individual user.
The consent mode adheres to regulations by default, so you don’t have to worry about having to manually customize the process. To get more into the technical aspects, Google consent mode is an API that’s integrated with your website.
2. UI/UX Practices
An integral part of data practices is the UI/UX design of your website. The way in which your website is designed and how is the consent of the user given is done by a UI/UX expert. The essential rule in multiple regulations is a user-friendly and understandable layout.
Furthermore, if the website wants to gather cookies, then it should explicitly ask users what information they are allowed to collect and in which manner. This is usually done by a pop-up notification that should be written in simple English, and that is easy to understand.
This pop-up notification should give users check-boxes that will allow them to customize which data are they comfortable with sharing and the ability to reject cookies if they consider them intrusive. Overall, this is a good way to build trust between you and your users.
3. Better Cybersecurity Practices
According to GDPR, you’re responsible for storing user data. In case of a data breach, then you will face consequences. There are many factors that impact how much you’re going to be fined. Most importantly, the quantity of information that gets leaked, as well as their nature, plays a significant role.
Even though this data breach isn’t directly your fault, it was up to your company to ensure secure cybersecurity protocols.
Cybersecurity is an important aspect of every business. Without strong security practices, your internal processes and profits can be endangered. Whether you become a victim of ransomware, trojan, or some other malware, they can all lead to lowered operational efficiency.
Implementing better security practices can be costly, but it’s much more affordable than having to suffer consequences from a data breach. An important first step to better cybersecurity protocols is training your employees to recognize phishing attempts and scam attempts.
Eventually, you can go for implementing better security practices via password managers or through an anti-virus. Internal networks can be further secured y firewalls.
Establishing Credible Data Practices is Essential
There is no excuse for not following regulations regarding user data. Implementing the right practices will help you prevent catastrophic situations that breaking regulations might lead to. Fines, blow to personal and company’s reputation, as well as loss of customers, are all risks you’re exposed to when not following regulations
Consent management doesn’t only help with mitigating risks, but it also helps you establish better connections with your customers. Through transparency and communication, you will be able to increase your sales and build better relationships.
Remember, there are many more practices than we’ve mentioned here, but you will do much better if you implement at least one of them. Some of them might cost you, but in the long run, it will be much more affordable than what breaking the regulations brings you.
Find the consent management platform that suits your business the best, and ensure you’re using user data in a transparent and consensual manner.