Consumer product executives should consider viewing data privacy and security not just as a risk management issue, but as a potential source of competitive advantage that may be a central component of brand-building and corporate reputation. For more information - Visit Deloitte University Press - http://dupress.com/articles/consumer-data-privacy-strategies/

1. of consumers are aware
of security breaches of
personal data stored
with retailers
of consumers state that
a single data breach
would negatively impact
their likelihood of
buying brands
Data privacy and security as a competitive advantage
83% 59%
of consumers agreed that easy-to-
understand privacy policies would
increase their trust in CP companies
73%
of consumers
more likely to buy
from a consumer
product company
that was verified
by a third party
for data privacy
and security
70%of consumers
surveyed more
likely to purchase
from consumer
product companies
that protect their
information
80% of consumers
believe most
consumer product
companies are
adequately
protecting their
information
37%
Five considerations toward stronger
data privacy and security practices
1.Take on the consumer mindset in setting the vision and
strategy for what data is collected, how data is analyzed
and used, and how breaches are handled.
2.Develop privacy policies as if they were a marketing tool
rather than only a legal disclosure.
3.Elevate the seniority of the executive with ultimate
responsibility for data privacy and security.
4.Deploy supporting processes and systems consistently
across the enterprise to reduce exposure and mitigate threats.
5.Expand risk management around data privacy and security
to guard against not just external malicious breaches, but
also inadvertent internal breaches and third-party
partner breaches.
“Consumer product companies should not
assume that adequate privacy and security
precautions are in place with digital marketing
vendors. They should be verifying with
third-party audits.”
— Consumer product information technology executive
“Provide clear and frequent updates on what personal
information is held and how and when the information
is provided to others.”
— Consumer survey respondent
50%37%
47%
47%
18%
Consumers
Executives
Consumers believe the risks of
sharing personal information are
worth the personalized promotions,
advertising, or coupons
Consumers believe that the risks of
sharing personal information are
worth product recommendations
Disconnects —
consumers vs. executives
Most consumer products companies
are adequately protecting consumers’
personal data
25%
Note: Figures represent the proportion of respondents who agreed or somewhat agreed with the statement.
Source: Consumer product consumer and executive survey on data privacy and security, Deloitte LLP, August 2014.
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Building consumer trust
Protecting personal data in the
consumer product industry
For more information go to: www.dupress.com/consumer-data-privacy-strategies