Why Data Privacy Should Be Part of Every Business Growth Strategy
Want to build a successful business that customers will trust? Every business does. More traffic, more sales, brand awareness and authority. Buuut…
It won't matter if you don't protect customer data.
Data privacy issues and exposure claims are becoming increasingly common. Customers today care about how their information is collected, stored, used, and shared. When businesses fail to protect their data privacy, consumers notice. Big time.
It happens every day in class action lawsuits. Data breaches. Facebook explanations. Needless to say, the damage to a business is severe. Lost customers. Negative press. Legal bills.
If you've made it this far, you're probably wondering "what does this have to do with growing my business?"
Here's the thing. Data privacy isn't just another cost of doing business. It's one of the best investments you can make to fuel growth. Privacy focused businesses win big rewards in terms of customer loyalty and trust.
But how do you do it? What can you do TODAY to start protecting your customer data?
Let's dive in.
You'll learn:
Why data privacy should be part of your business growth strategy.
The harsh financial realities when you don't protect customer data.
Why customers will trust you with their data (and money).
Actionable steps you can take to protect your customers.
Why You Should Care About Data Privacy
Wondering why you should care about privacy? Let's start with why you shouldn't. Most businesses view privacy as a legal obligation. Something they have to deal with because lawyers say they have to.
Wrong answer.
Privacy should be at the forefront of your business. Here's why. Customers notice when a business doesn't protect their privacy. Whether it's mishandling personal information exposure claims or failing to secure customer data from a breach.
The second you lose their trust, they take their business elsewhere. Never to return.
Businesses that care about privacy and take action by working with experienced cybersecurity lawyers to get their policies right are rewarded with glowing reputations and customer loyalty.
Let's say you're a customer looking for a new place to shop online. You have two options.
Business A: Has clear privacy policies. Encryption. A proven track record of protecting customer data.
Business B: Recently made the news because of a data leak.
What's your decision?
Pretty simple when you look at it that way. Customers will trust you with their data AND money when you've proven you're privacy focused.
Data privacy is the new competitive advantage.
Cost of Data Breaches
This is where things can get ugly. According to IBM's 2025 report, the average cost of a data breach will be $4.44 million. Yikes.
In fact, for businesses located in the United States, that number rises to $10.22 million. That's an all-time high.
$10 million. Can you imagine?
That covers legal fees, penalties, lost business, recovery efforts and more. But here's the kicker. $10 million won't come close to fixing the reputation a business suffers after failing to protect customer data.
Businesses have suffered brand destroying class action lawsuits for years over privacy exposure claims. Some you've probably heard about. Others that flew so far under the radar you didn't know your info was collected in the first place.
2024 was no different. Over 2,500 privacy lawsuits were filed in the US that year. And that number is expected to grow.
Here's the scary part.
Most businesses believe that "it won't happen to me." They think their nice little business is too small to be targeted. False.
Cybercriminals target businesses of all sizes everyday. Small businesses often become targets because they lack the security of larger corporations. Fixing a preventable problem won't save your business money. It'll create a disaster waiting to happen.
Privacy Builds Customer Trust
Trust is everything in business. If you don't have trust, you'll burn through ad budgets with little to show for it. Customers need to trust you.
So how does that tie into privacy?
Customers trust your business when you're transparent about three things.
The information you're collecting.
How you store that information.
What you plan to do with that information.
Once you can answer those questions, your customers will reward you with their trust. Not only that, customers that trust your business are more likely to:
Per Cisco's 2024 Data Privacy Benchmark Study:
Recommend your business to friends. 96%
Continue to do business with you. 95%
Your privacy policies can actually drive revenue. Customers have tons of choices. So when a business makes it easy to understand their privacy policies and protects their data, they earn customer loyalty.
6 Steps to Protect Customer Data
Protecting customer data is easier than you think. Prioritization is key. Focus on these key aspects of your business and you'll set yourself up for success.
Conduct a Privacy Audit
Know where you stand before you start. A privacy audit will assess how your business collects, shares, and stores customer data.
Write Privacy Policies
Privacy policies should be written in plain English. Educate your customers on how you collect their data and why.
Invest in Security Measures
Encrypt your data. Limit access. Test your security protocols. These are your digital locks and keys. Protecting your customer's data should be viewed as protecting your own.
Train Employees
Employees are often the weakest link in data security. Make sure any team member that handles customer data is trained to spot and properly react to threats.
Applicable Laws
Stay on top of privacy laws and regulations as they expand. Expect to see privacy laws introduced in states that don't currently cover them. In 2025 alone, 144 countries have data privacy laws covering over 6 billion people.
Monitor Your Business
Data privacy doesn't stop with a few policy updates. Ongoing monitoring is required to ensure your business is compliant and secure.
Think of these tips as the foundations to building a privacy focused business. You can take it a step further by implementing a Privacy by Design framework. Which means considering privacy at every stage of your business. Learn more about Privacy by Design and why you should care.
Wrap Up
Your customers entrust you with their data. And for good reason. Your business would be lost without them.
When you protect that data, they take notice. Privacy focused businesses enjoy heightened customer loyalty and brand reputation. But when you fail at protecting your customers privacy, they'll make you pay. With their wallets and legal action.
Here's your takeaway:
Privacy should be part of your business growth strategy. It's not just a legal box to check.
Data breaches are insanely expensive. Not only monetarily but also reputationally.
Privacy builds customer trust. If you lose their trust, they'll spend their money elsewhere.
There are steps you can take TODAY to start protecting your customers' privacy.
Data is the new currency. If you want your business to thrive, protect it.