Gary Davis, Vice President, Global Field & Consumer Marketing, Intel Corporation, explored the cost of privacy in a hyper-connected world in his keynote presentation to Argyle's CMO membership at the 2016 Chief Marketing Officer Leadership Forum: Spring Event in Chicago on March 8. In his presentation, Davis examined the importance of data today for both marketers, and unfortunately, hackers.
Data breaches have become commonplace across the globe, and these incidents are costly for organizations, their employees and their customers. Meanwhile, customer data remains exceedingly valuable for organizations of all sizes, and many leading companies will pay significant amounts to collect and retain user data.
To illustrate his point, Davis described Facebook's acquisition of WhatsApp. Although Facebook closed a $19 billion deal to acquire WhatsApp in October, the social network did not buy WhatsApp for its technology. Instead, Davis noted, Facebook bought WhatsApp for the user information it had collected over an extended period of time.
Today's consumers are willing to give up their information to organizations, which can make it easier for these organizations to learn about these consumers and discover new ways to connect with them.
"We, as consumers, are willing forego certain information about ourselves so that we get things for either free or pay a greatly reduced amount so we can enjoy the benefit of that service and continue on," Davis said.
On the other hand, consumer information that falls into the wrong hands can cause long-lasting problems. If a cybercriminal accesses this information, a consumer's identity becomes at risk.
"We, as marketers, need to be able to crisply articulate what it is when we talk about privacy with our consumers, what it means to us as a business and what it means to them as a consumer."
Now, hackers are searching for consumer data because it offers the most value. This information remains intact, and as such, will provide cybercriminals with long-lasting value.
"Your private information is worth 10 times that of a breached credit card," Davis added.
A data breach today costs an organization roughly about $217 for every record a cybercriminal gets, Davis said. This cost incorporates data breach remediation and other factors.
Meanwhile, the data breach recovery time is roughly one year for an average organization, and there is no guarantee an organization will fully recover from this incident. An organization should expect to pay for the traditional recovery costs associated with a data breach, along with the hidden costs relative to brand damage and loss of customers.
"If you're wasting away a year trying to get over the cost of a breach, it's an expensive time for [your organization]," Davis said. "While you're doing that, your competitors are probably advancing their brand and taking away market share from you."
Many of today's consumers don't fully understand the meaning of "privacy." However, the majority of consumers recognize the value of privacy, and it is important for organizations to help them protect their personal information at all times.
"We, as marketers, need to be able to crisply articulate what it is when we talk about privacy with our consumers, what it means to us as a business and what it means to them as a consumer," Davis said.
Trust remains a major concern for many consumers as well. Recent data indicated that the majority of consumers do not fully trust leading brands. Marketers, meanwhile, must find ways to build trust with customers and ensure they feel their data is in good hands.
"If you're wasting away a year trying to get over the cost of a breach, it's an expensive time for [your organization]."
If consumers do not trust how an organization may use their personal data, they are unlikely to visit or return to an organization's website. In addition, these consumers may become less likely to download this organization's mobile app or stop using the organization's app altogether.
Privacy concerns may limit the amount of time a consumer spends interacting with an organization. But an organization that commits the necessary time and resources to build trust with its customers can improve its customer interactions and boost its chances of developing long-lasting partnerships with customers.
So what can organizations do to alleviate customers' privacy and trust concerns? Davis recommended incorporating a trustmark onto a website, as this shows that an organization is committed to keeping its customers' personal information safe.
In addition, organizations that are committed to providing safe, reliable support via multiple devices can protect their customers against myriad cyber threats.
With the evolution of the Internet of Things (IoT), many organizations may explore ways to connect various devices consistently. And with the ability to minimize the risk of cyber dangers, organizations can ensure their customers can make the most of their IoT experiences -- without having to worry about various privacy and trust concerns. Instead, organizations can take the guesswork out of data protection for their customers and secure their sensitive information day after day.
Gary Davis is the worldwide marketing lead for Intel Security’s Consumer, Mobile and Small Business (CMSB) organization. In this role he oversees the strategies and plans that drive brand/product consideration, preference, and demand globally. Gary is primarily responsible for optimizing the CMSB business for success and ensuring marketing superiority for the Company’s portfolio of products around the world. He closely follows technology and marketing topics to understand how they intersect and influence the behaviors of consumers. Gary is also considered an online security expert frequently discussing security threats and trends.
Gary has appeared on multiple business and consumer lifestyle broadcast outlets, including CBS News, CNBC, FOX News, Bloomberg, WSJ MoneyBeat and several Bay Area television stations; and quoted in the New York Times, the Wall Street Journal, USA Today, Money Magazine, CNN, Forbes, TIME Magazine, LA Times, Huffington Post, MSNBC, PC Magazine, CNET, and PC World. He is a sought-after speaker discussing contemporary marketing techniques and activities. Prior to joining McAfee, he held senior leadership positions for more than 15 years in technology companies. Gary serves on the board of directors of the National Cyber Security Alliance (NCSA).