piwik pro the real cost of data privacy
TRANSCRIPT
The Real Cost of Data Privacy......and how to balance the risks and benefits to
your business in the age of customer centricity
Ewa Agata Bałazińska, Piwik PRO
INference, 9th of December 2016
The Real Cost of Data Privacy
Ewa Agata Bałazińska Content & Communications Manager
Piwik.pro
The Real Cost of Data Privacy
Aurélie Pols
Whitepaper on data protection best practices written by a renowned privacy expert
The Real Cost of Data Privacy
Agenda
1. Data Breaches: The New Norm?
2. The Promise of the Brave New Digital World
3. When There Is One Cookie Too Many
4. Businesses and Customers: Friends or Foes?
5. Why Should My Business Care?
6. Regulators Looking for a Third Way
7. Some Transcontinental Stories to Consider
8. What Does the Future Hold For Us
The Real Cost of Data Privacy
Data Breaches: The New Norm?
• A day doesn’t go by without another big data breach hitting the headlines.
• Hacks, leaks, poor security, configuration error, etc.
• Both large companies and start-ups
• Can your business afford to suffer from a breach? There’s more at risk than just losing data.
Data Biggest Data Breaches by Information Is Beautiful
The Real Cost of Data Privacy
$4 million the average total cost of a data breach incident
Ponemon Institute & IBM Study: 2016 Cost of Data Breach Study. Impact of Business Continuity Management
The Real Cost of Data Privacy
But there’s even more to lose.
The Real Cost of Data Privacy
The Promise of the Brave New Digital World
• The Customer Journey is a concept used in sales & marketing, but also with usability and design.
• The emergence of tools for better understanding the customer journey: from initial contact, through the engagement process, towards a long-term relationship.
• The promise of new opportunities for both businesses (more insights and sales) and users (usability, customization of content and offers).
• Referrers & Campaigns reports: where does the journey begin?
• Entry pages & Visitor log: where are the first touch points with the brand?
• Tracking touch points in the middle of the sales funnel, also for individual users.
• Tracking non-standard touch points
• Tracking customers in the final stages of the conversion funnel
• Touch points beyond the funnel
• Reports on length of the customer journey
• Intranet analytics
• App Store analytics
• Custom dashboards
• Custom variables & dimensions
Awareness Consideration Conversion Retention
The Real Cost of Data Privacy
The Promise of the BraveNew Digital World
American customers say they might provide personal information, depending on the deal being offered and how much risk they face.
Pew Research Center
The Real Cost of Data Privacy
The Promise of the BraveNew Digital World
American customers say they might provide personal information, depending on the deal being offered and how much risk they face.
Pew Research Center
The Real Cost of Data Privacy
When There Is One Cookie Too Many
• Tension between what really needs to be tracked and unrestricted data collection ‘just-in-case we need it one day’.
• First-party vs. third-party cookies: The majority of breaches occur as a result of third parties.
• “Stitching” the customer journey on multiple devices with a variety of techniques, including probabilistic or deterministic re-identification matching.
• Shift in power balance: the customer and citizen’s identity is increasingly commercialized, leading to discrimination and general discontent.
Source: Michelle O'Connell’s collection/ Flickr
The Real Cost of Data Privacy
When There Is One Cookie Too Many
• Many companies attempt to match personally identifiable information (PII), such as a name and address, with consumer profiles they have at their disposal.
• Even if based on a cookie usage, such collection can still include sensitive data.
• The Creepy Factor Stories
The Real Cost of Data Privacy
Businesses and Customers: Friends or Foes?
If your customers trust you, they love you
and they will be passionate about your love…
…but if you breach their trust, you will not just create Dislike
You will create hate. People don’t go from Love to Dislike
TRUSTPRIVACY
$+$-LikeDislike
Inspired by The International Association of Privacy Professionals
The Real Cost of Data Privacy
Businesses and Customers: Friends or Foes?
The rise of adblocking software, with an estimated cost to publishers in 2015as high as
$22 billion
Growth of third-party cookie rejection - some reports point to numbers as high as
40% of users. Source: The PageFair & Adobe Report
The Real Cost of Data Privacy
The Real Cost of Data Privacy
Why Should My Business Care?
• Privacy awareness is on the rise: among clients and citizens alike
• Users are concerned with how online service providers collect and protect their personal information.
The Real Cost of Data Privacy
Why Should My Business Care?
• Data privacy can no longer be an afterthought according to reports by
• More and more research confirms that data privacy can be a differentiator and game-changer if you want to win and retain customers.
The Real Cost of Data Privacy
You want to have TRUST throughout the entire ecosystem
The Real Cost of Data Privacy
Regulators Looking for a Third Way
DIRECTIVE 2009/136/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 November 2009, amending Directive 2002/22/EC on universal service and users’ rights relating to electronic communications networks and services,
Directive 2002/58/EC concerning the processing of personal data and the protection of privacy in the electronic communications sector, and Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws.
The Real Cost of Data Privacy
Guidelines by
1. Collection Limitation
2. Data Quality
3. Individual Participation
4. Purpose Specification
5. Use Limitation
6. Openness
7. Security Safeguards
8. Accountability
The Real Cost of Data Privacy
The Real Cost of Data Privacy
Compliance refers to everyone, both corporate players and start-ups alike
• Data protection laws apply to individuals and all businesses, regardless of their size or development stage.
• Need to keep an eye on what software is used in your organization, how it is licensed and whether the licences are up to date. The same concerns apply equally to data security.
• A breach can lead to a fine with sums that might be small change for a big company but could be crippling for a start-up.
The Real Cost of Data Privacy
Need to be grown-up about data security.
The Real Cost of Data Privacy
Beware the small print!
• FREE SOFTWARE IS GREAT. Except it’s not free.
• Software provider profits from your data and your users’ data. You are the product here and you compromise your visitors’
• Would you give away your CRM and other sensitive data to ad agencies serving your competitors?
Excerpt from the Google Analytics’ Terms of Service
The Real Cost of Data Privacy
Some Transcontinental Storiesto Consider
Obliterating the internal data processing framework known as SafeHarbor:
The European Court of Justice in Luxembourg declares SafeHarbor illegal in October 2015. Data of EU citizens can’t be processed by US entities on the basis of SF, more guarantees are needed.
February 2016: Announcement of PrivacyShield, new framework for transatlantic data flows between US and UE.
Source: European Commission
Edward Snowden
2013
Max Schrems
2015
The Real Cost of Data Privacy
Not just the European Union...
According to Russian law from 2014, companies must store user data on Russian soil, something U.S. technology firms currently don't do.
Until now, Russia has not enforced this law and LinkedIn seems to be the first company that has been actively pursued.
The Real Cost of Data Privacy
What Does The Future Hold For Us?
• General Data Protection Regulation to come into force in 2018
• Stems from the need to focus on the rights of the customers and citizens in the European Union.
• Much heftier fines for lack of compliance than before: up to €20m or 4 % of global turnover, whichever is the higher.
EU Commission Vice-President, Viviane Reding
Citizens do not always feel in full control of their personal data
Source: WFA Marketers
The Real Cost of Data Privacy
5 top changes that GDPR will bring about...
Data-driven consent: An individual user must be provided with accurate information on the kind of data to be collected or processed, and for what purpose. ”Explicit” consent is needed in the case of processing particularly sensitive data.
Comprehensible policy: a request for user’s consent for data processing must be performed in an easy, accessible form and written in clear and plain language.
“Right to be forgotten”: All subjects have the right to have their data removed from a database upon demand.
Compliance of all subjects: All vendors who deliver cloud service to businesses in the EU or process data in any other way must meet the requirements of the new ruling. GDPR comes into force in the spring of 2018, so businesses are to use this transitional period to apply its provisions.
Data protection officer: If a company manages a great amount of sensitive data, it is obliged to appoint a data protection officer.
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The Real Cost of Data Privacy
Final Takeaways
• Don’t risk your revenue, insights, reputation or your customers’ trust.
• Just because technology lets you spy on your users doesn’t mean you should do so.
• Be grown-up about your data security, no matter how big or small your business is.
• Use suggested frameworks, such as OECD guidelines, to inspire your internal data protection policies.
• Make sure your setup is ready for the forthcoming European regulations.
The Real Cost of Data Privacy
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