Data is a valuable commodity in today’s digital business landscape. When it comes to marketing and generating leads, data that can be individually identified is particularly useful. There is no doubt that data gathered from behavioral analytics can be invaluable for lead generation.
But leveraging personal data throws up a set of challenges: How do you utilize this vital information whilst ensuring that you protect the privacy of the individual or business concerned?
Safeguarding personal data, while using it to build brand awareness and engage with potential new clients is not simply an ethical concern, it’s also a legal obligation.
Globally, there is robust legislation in place to protect data privacy. Any business engaged in using personal data for lead generation must be familiar with, and adhere to these legal constraints, or face serious consequences, including taking a big financial hit in the form of fines.
Let’s find out more about this in our comprehensive guide here.
What is data privacy in B2B lead generation?
The drive to boost leads and create great lead magnets means that businesses collect and analyze data in order to extend their marketing reach and impact.
For a B2B business, client data is extremely important, and forms the basis for large-scale lead generation drives. This sensitive data is governed by legislation to ensure it is safely handled.
In fact, B2B data can be even more sensitive and require greater protection than an individual’s data. B2B clients are, after all, whole companies and organizations, rather than isolated people. The data can therefore, if misused or exposed, represent a huge risk to a company.
There are key pieces of regulation that any business with access to personal data must adhere to. Let’s look at the main ones.
GDPR
GDPR stands for General Data Protection Regulation. It’s a set of EU regulations that govern the data protection standards for businesses trading within the European Union. Crucially, this also extends to businesses located anywhere in the world that handle the data of EU citizens.
CCPA
CCPA stands for California Consumer Privacy Act. It’s a US regulation that protects the personal information of California residents.
PDPA
PDPA stands for Personal Data Protection Act. It’s a regulation that covers multiple countries. Many individual countries such as Singapore or Thailand have their own version of this law which protects their citizens.
DPA
DPA stands for the Data Protection Act, and it protects the personal data of British citizens.
Depending on the reach and location of your business, it is essential to familiarize yourself with the details and powers of each of these regulations in order to protect your business as well as your clients and customers.
The chart below demonstrates how consumers feel about the data that companies gather on them, and gives an insight into why data privacy protection matters both from a legal and a consumer relations point of view.
Why promoting data privacy matters for B2B businesses
Effectively managing all types of information and communication is essential in any business – from sharing data and code via API examples, which allow apps to ‘speak to each other,’ to streamlining how marketing teams reach out to and communicate with clients and leads through AI.
Businesses are now dealing with vast amounts of interactions, which represent huge numbers of opportunities to gather and use data. The image below shows the variety of ways in which B2B companies, in particular, use the personal data they gather.
Protecting that data, as well as complying with regulations, matters to businesses because it demonstrates that they can be trusted. Businesses that care about their customers’ privacy demonstrate good management, organizational responsibility, and best practice.
Having a good track record on data protection is an essential barometer of a healthy and well run business. So much so that it is one of the factors that you should look at when conducting an operational audit. In asking what is an operational audit? it’s important to know that data protection is a key component of your businesses security and IT systems.
For a business that trades mainly with other businesses, this is particularly vital. A B2B business can showcase its strong privacy policies and safeguards as a selling point for potential new business partners. Establishing a positive reputation in your sector or market is beneficial in attracting and nurturing quality leads and growing the business.
Balancing data privacy and lead generation
There is no doubt that data is valuable for businesses, and that using that data effectively through data activation is essential. What is data activation? In essence, it means making sure that business decisions and strategies are informed and led by quality data.
Especially when it comes to marketing and driving lead generation, data can be used to better personalize and target campaigns that have a higher chance of resulting in deals done and sales completed.
However, as we have already discussed, data privacy protection must form part of lead generation, and this balance between what a business can gain from harvesting and using data and its responsibilities to protect an individual’s personal data is an important one.
Looking at the chart below, it’s clear that the kind of information marketers can gather about customers is very broad. It’s obvious, depending on the sector, that this breadth of data can be extremely useful. It’s invaluable for example in revealing information such as purchase intent. But from a customer’s point of view, it’s equally clear that they would want this level of information protected and kept private.
Companies have a responsibility to reassure customers and contacts that their data is being handled securely, and must offer evidence of safeguarding and complying with regulations that protect an individual’s or organization’s data.
Businesses must be transparent about data protection, and make policies and practices available to customers to view and access at any time.
This, in essence, is how a business strikes a balance: they must utilize data effectively, but at the same time protect it and be open about how they handle and store it.
Best practices for data privacy protection
Following best practices for every business area within your company is essential. From IT cost optimization strategies that can streamline and boost your company’s use of technology, to optimizing your customer relations management procedures. Likewise, following best practices when it comes to compliance with data privacy protection regulations, and how your business handles private data in general, is vital.
In addition to data privacy measures, financial institutions should also prioritize compliance with the EU DORA (Digital Operational Resilience Act). While its primary focus is on strengthening ICT risk management and operational resilience, DORA is essential in ensuring that financial businesses can withstand and recover from digital disruptions—an essential aspect of maintaining trust and operational continuity.
Let’s look in detail, and on a practical level, at what a business can do to follow best practices regarding data protection.
Set up adequate security measures
Firstly, you need to make sure the security measures your company has in place are up to the task. Look at the latest industry standards on data security for comparable businesses, and if necessary invest in an upgrade. It may even be worth engaging a consultant to look at your security measures and suggest an overhaul.
Anonymize data where possible
Personal data doesn’t necessarily need to be tagged to a named individual or organization to be useful. Consider making data anonymous so that it can be used more safely and without concern for misuse.
Don’t collect more data than necessary
Only ever collect the data that is useful and necessary for the purpose it is intended for. The less personal information you have, the lower the risk of loss or misuse. Equally, make sure that only authorized individuals have access to information. These measures will significantly reduce any risk.
Be transparent and open
When it comes to keeping clients and customers informed about how you handle data, be as open and transparent as possible. This will give individuals and business partners confidence in your safeguarding strategies.
Secure client permission
Always get an individual or business’s permission. This is generally a legal obligation, but is also ethically important. Make agreements that clients enter into with you explicit and detailed, so that individuals and businesses know exactly what they are giving permission for, and what that means. Explain how you will handle and store their data and how you will protect it.
Invest in staff training
It’s vital to make sure your staff are up to speed on all relevant legislation and obligations. It’s so important to keep them updated on best practices and strategies, and instill in them the value of good data protection practice and why it’s beneficial to the business. Educate them about how to balance these concerns with lead generation and marketing drives.
If you look at the image below, you will see that data privacy protection legislation is widespread globally, and why it’s important that your staff are aware of its extent and power.
Conclusion
When it comes to B2B lead generation and how this is impacted by data privacy responsibilities, it’s important not to see the two as being at odds with each other. Data protection is an ethical as well as a legal obligation, and having high ethical standards is, to a degree, a selling point when it comes to building a reputation and making business partnerships.
It’s a case of making sure you and your staff are across the legislation, and are aware of the risks and responsibilities. As well as this, you are prepared to employ best practices and adhere to important rules. With these strategies in place, your business will be on a robust and secure footing when it comes to protecting your client’s valuable data, and leveraging it to boost lead generation.