Chances are, your business collects personal information about customers, employees and/or partners. This means you have an obligation to protect that information. Failure to do so could lead to legal issues or even bankruptcy. Unfortunately, many businesses have found themselves in these situations over the past several years. Jane Hils Shea, technology and data privacy attorney for Frost Brown Todd said in an email interview with Small Business Trends, “The frequency and extent of data breaches is at an all-time high in terms of both number of breaches and number of individual records compromised, and the expenses associated with data breach response is increasing.” Here’s what your small business needs to know about personal information and how to protect it. What Is Personal Information? Personally identifiable information or sensitive personal data can be anything that is used to identify an individual’s personal identity. For instance:
There’s a good chance that your business collects some of this information about your customers already. Any time someone pays with a credit card or signs up for your email list using their name and contact info, you gain access to personal information. This means you need to have policies in place to protect this information and let customers know exactly how you intend on using this data. Here’s what you need to know. Why Is Personal Information Important to Your Small Business? There are laws and regulations that require businesses to meet certain standards when it comes to storing and protecting personal information. In most cases, you’re bound by the actual language that you use in your own privacy policies. So it’s important that you outline exactly how you plan on using any personal information you collect and have customers agree to that policy when they do business with you. However, there are other standards that apply to specific industries as well. Shea says, “An online business that collects personal data about persons located in the U.S. is primarily bound by the promises made in its website privacy policy. IF a business is a part of the financial services or healthcare industries, it could be subject to the requirements of the Gramm-Leach-Bliley Act (GLBA) or the Health Information Protection and Portability Act (HIPAA). If it collects data about children under 13 it could be liable under the Children’s Online Privacy and Protection Act (COPPA).” Payments are another major area where businesses need to focus their security efforts. Shea explains, “Businesses that accept credit cards should be certain they comply with the Payment Card Industry Data Security Standards (PCI-DSS). All businesses that take payment by credit card are required by their card processing agreement to have implemented and to maintain the PCI-DSS.” Online businesses also need to be aware of international laws or those that focus on personal information from customers outside the U.S., like the GDPR laws that went into effect for the EU earlier this year. When it comes to protecting personal information, the Fair Credit Reporting Act’s Identity Theft Rules require certain businesses to have written identity theft protection programs. And many vendor service agreements also require businesses to implement industry standard security procedures as part of their contract agreements. How Can Your Business Protect Personal Information? There are many steps you can and should take to protect the sensitive data and personally identifiable information you collect about customers, employees, and vendors. Your exact plan will depend on what data you actually collect. But there’s one essential principle that applies to basically every business. Shea says, “The cardinal rule and the first step for a business to take to protect against data breaches is to “know thy data.” A strong information security program begins with a data inventory and a data map. This exercise tells a business what personal data it collects and processes about its customers and employees, and identifies where in its system it is located so it can best protect that data. Further, it should understand how personal data is processed and transmitted, how long it is retained, and what its data destruction obligations are.” She also offered a handful of concrete steps you can employ. For example:
Cybersecurity Best Practices for Small Businesses In today’s digital landscape, the importance of cybersecurity cannot be overstated. Small businesses, just like large corporations, are prime targets for cyberattacks. The consequences of a data breach can be devastating, leading to financial losses, reputational damage, and legal troubles. Therefore, it’s crucial for small businesses to implement robust cybersecurity measures to protect their operations and customer data. In this section, we will explore some cybersecurity best practices tailored to the unique needs and constraints of small businesses. Regularly Update Software and Systems Outdated software and operating systems are vulnerable to known security flaws that cybercriminals can exploit. Small businesses should establish a routine for updating all software and systems promptly. This includes operating systems, antivirus programs, firewalls, and applications. Consider enabling automatic updates whenever possible to ensure your systems are always equipped with the latest security patches. Implement Strong Password Policies Weak passwords are a common entry point for cyberattacks. Encourage your employees to create strong, complex passwords that include a combination of upper- and lower-case letters, numbers, and special characters. Passwords should be unique for each account and changed regularly. Consider implementing two-factor authentication (2FA) to add an extra layer of security to your accounts. Educate Your Team on Cybersecurity Human error is a significant contributor to cybersecurity breaches. Ensure that your employees are well-informed about cybersecurity best practices. Conduct training sessions or workshops to educate them on recognizing phishing attempts, social engineering tactics, and other common threats. Encourage a culture of vigilance and responsible online behavior within your organization. Secure Your Wi-Fi Network Your Wi-Fi network is a potential entry point for cybercriminals. Secure it with a strong password, and consider using Wi-Fi encryption protocols like WPA3 for enhanced protection. Regularly update your router’s firmware to patch security vulnerabilities. Create a separate guest network for visitors and customers to prevent them from accessing your internal network. Backup Your Data Regularly Data loss can occur due to cyberattacks, hardware failures, or other unforeseen events. Implement regular data backup procedures to ensure that critical business information is safe and recoverable. Store backups in secure, off-site locations or use cloud-based backup solutions. Test your backup and recovery processes to verify their effectiveness. Install and Maintain Antivirus Software Antivirus and anti-malware software are essential components of your cybersecurity strategy. Install reputable antivirus software on all devices connected to your network. Keep it updated to detect and mitigate the latest threats. Configure your antivirus software to perform regular scans of your systems. Establish a Cybersecurity Incident Response Plan Despite your best efforts, security incidents can still occur. Having a well-defined incident response plan is crucial. Outline the steps your organization should take in the event of a cybersecurity breach. Assign responsibilities to specific team members, and establish clear communication channels. The goal is to minimize damage and downtime while swiftly addressing the issue. Limit Access to Sensitive Data Not all employees require access to all data and systems. Implement the principle of least privilege (PoLP) by restricting access to sensitive information only to employees who need it for their roles. Regularly review and update access permissions to align with organizational changes. Regularly Monitor Network Activity Continuous monitoring of your network’s activity can help detect anomalies and potential security threats. Consider using intrusion detection systems (IDS) and intrusion prevention systems (IPS) to identify and respond to suspicious activities. Monitor access logs and network traffic for signs of unauthorized access or unusual patterns. Secure Mobile Devices In today’s mobile-driven world, mobile devices are often used for work-related tasks. Ensure that all mobile devices used for business purposes are equipped with security measures such as remote wipe capabilities and encryption. Educate employees on mobile security best practices and the risks of downloading unverified apps. Collaborate with Cybersecurity Experts Cybersecurity is a complex field that requires expertise. Consider partnering with cybersecurity consultants or managed security service providers (MSSPs) to assess your security posture, identify vulnerabilities, and develop a tailored cybersecurity strategy. Their insights and guidance can be invaluable in protecting your business. Stay Informed About Emerging Threats Cybersecurity threats evolve continuously. Stay informed about the latest cybersecurity trends, vulnerabilities, and attack techniques. Subscribe to cybersecurity news sources, attend industry conferences, and engage with online communities to gain insights into emerging threats. This knowledge will help you proactively adapt your cybersecurity measures. Developing a Comprehensive Data Protection Strategy A robust data protection strategy begins with recognizing the varied levels of sensitivity in the personal information collected. Sensitive data, such as financial details, health records, and Social Security numbers, demands stringent protection measures, including encryption and access controls. Businesses must classify data at the point of collection, assigning levels of sensitivity and determining the appropriate safeguards for each category. This classification enables a tiered protection approach, ensuring that the most sensitive data receives the highest level of security. Implementing regular data audits is crucial for maintaining data accuracy and relevance. These audits assess what data is stored, its access levels, and its usage against the company’s privacy policies and compliance obligations. Compliance checks against standards such as GDPR, HIPAA, or CCPA ensure ongoing adherence to legal requirements, helping businesses avoid costly fines and reputational damage. Enhancing Customer Trust through Crafting Clear Privacy Policies Transparency in how customer data is handled plays a pivotal role in building trust. A clear, concise privacy policy should articulate the types of data collected, the purposes of data processing, the security measures in place, and the customers’ rights regarding their data. This policy must be easily accessible, ideally with summaries or highlights for key sections to aid comprehension. Regular updates to the privacy policy, reflecting changes in data practices or legal requirements, further enhance transparency and trust. Implementing Consent Management Effective consent management ensures that customers have control over their personal information. This involves clear communication about the data being collected and its intended use at the point of collection, offering customers the choice to opt-in or opt-out. For sensitive information, explicit consent is often required, necessitating a straightforward mechanism for customers to grant or withdraw their consent. Managing consent records meticulously not only complies with legal requirements but also demonstrates respect for customer preferences. Preparing a Data Breach Response Plan Preparation is key to effectively managing a data breach. A well-defined response plan outlines the steps to take immediately following a breach, including assessing the scope, containing the breach, and notifying affected individuals and regulatory bodies. The plan should designate specific roles and responsibilities within the organization for managing the breach response, ensuring a coordinated and efficient approach. Legal Obligations and Customer Communication Following a data breach, adherence to legal and regulatory obligations is paramount. This includes timely notification to authorities and affected individuals, providing details about the breach, the type of data compromised, and the measures taken to address the breach. Transparent communication with customers, emphasizing the steps being taken to secure their data and prevent future breaches, is crucial for maintaining trust. Offering support, such as credit monitoring services, can further demonstrate the company’s commitment to protecting its customers. Conclusion: Safeguarding the Future through Responsible Data Management In an era where data is both a valuable asset and a potential liability, implementing robust data protection strategies, fostering transparency, and preparing for the unexpected are critical for businesses of all sizes. By developing comprehensive data protection strategies, businesses not only shield themselves against the financial and reputational repercussions of data breaches but also establish a foundation of trust with their customers. Transparency in data handling practices reassures customers that their personal information is respected and safeguarded, fostering loyalty in a competitive marketplace. Navigating the aftermath of a data breach with integrity and openness further cements a business’s reputation as a trustworthy entity. Ultimately, the commitment to responsible data management and protection is a testament to a business’s dedication to its customers’ well-being and privacy. By embracing these principles, businesses not only comply with evolving regulatory landscapes but also pave the way for sustainable growth and success in the digital age. Source: https://smallbiztrends.com Image Source: Photo via Shutterstock
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In today’s fast-paced business environment, effective customer communications management is crucial. Automation offers a practical solution to maintaining open lines of communication with clients without overburdening your team. By automating routine customer service requests, you can keep your clients satisfied and informed, while freeing up valuable time for your team to focus on driving the business forward. Customer Communications Management AutomationDiscover seven cost-effective ways to implement customer communications management automation and enhance your client relationships: 1. Initiate the ConversationProactive engagement with customers is key to fostering positive relationships. Instead of waiting for customers to reach out, identify indicators that might suggest they need assistance. For instance, a visitor lingering on help pages likely requires support, whereas someone browsing your products might benefit from a chat with your sales team to finalize a decision. These examples illustrate just a couple of ways to open communication channels proactively, enhancing customer satisfaction. By anticipating needs based on customer behavior, you’re investing in the long-term success and satisfaction of your clientele. Actively initiating conversations based on these indicators can lead to more effective customer service and potentially increased sales. There are multiple great tools out there which can help initiate this conversation, two of which are LiveChat and BoldChat and both with customizable audience interactions. 2. Use a Virtual Assistant to Handle the Simple ThingsEmbracing technology for customer service efficiency doesn’t necessarily mean expanding your workforce. Many customer inquiries are straightforward and can be effectively managed by intelligent chatbots and automated systems. These tools can quickly resolve basic issues, freeing up your staff to tackle more complex challenges. This approach not only streamlines your customer service process but also ensures that your human resources are utilized where they’re most needed, enhancing overall efficiency and customer satisfaction. A good place to start using digital or virtual assistants is in those proactive connections we just talked about. Chat bots such as Botsify (for Facebook Messenger and other apps) can answer those simple questions that might arise from whatever actions your client is taking on the site, and if it needs to will hand the conversation off seamlessly to a live person to handle the more difficult. 3. Make Use of New TechnologiesDon’t be scared to try out new technologies to solve some of those simple issues. Biometrics is one possibility, and using things like biometric password recovery (utilizing fingerprints or facial recognition instead of old school methods like “mother’s maiden name) takes out the need for a call into your call center or a support chat to authenticate their identity. Other new technologies that might assist in the automation process are the use of mobile apps, like those which walk customers through common issues so they can fix problems themselves without the need for your involvement. Others might use SMS to text a code to a number to get information on their account, a balance due, or to automate the payment process. 4. Use it for The All-Important Follow-upMaintaining communication after a sale is crucial for customer satisfaction. Following up shows clients that your business is available for ongoing support and helps in identifying and addressing potential issues early. A simple practice like reaching out a few days after a transaction to check if the client has any questions or needs assistance can be very effective. Addressing problems early can prevent them from escalating, and automated emails can be a straightforward way to initiate this post-purchase communication. 5. Automate Your Social Media PresenceAn active social media presence is essential for modern businesses. It connects you with potential and current customers, enhancing your brand’s accessibility. Automated social media management tools, like HappyFox, can efficiently sort through social media interactions, directing queries to appropriate departments without manual intervention. These tools can also help in automating your content posting, ensuring consistent engagement with your audience and maximizing your marketing efforts. 6. The SurveySurveys are a valuable tool for gathering insights. While response rates can vary, the feedback from well-crafted surveys is invaluable for identifying potential issues and sparking conversations with customers. Keeping surveys concise, relevant, and action-oriented can increase engagement. Automated follow-up emails based on survey responses can further facilitate dialogue, especially in areas of concern highlighted by customers. 7. The CallbackDespite the prevalence of digital communication, many customers still appreciate personal phone interactions. Including a callback option, alongside digital communication methods, caters to this preference. Tools like MobiForge’s Click to Call or Click to SMS solutions make it easy for customers to request a call. Calls can be queued for response by phone representatives, ensuring that more complex or urgent issues are addressed efficiently and personally. This approach acknowledges that while digital solutions are efficient, the human touch remains a crucial aspect of customer service. Types of Customer Communication Automation ToolsTo assist in selecting the most effective automation tools for customer communication, this table compares various types of tools based on their features and ideal usage scenarios.
Key Considerations for Automating Customer ConversationsAs you explore automating conversations with your customers, consider these essential points to ensure effective and efficient communication:
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During tumultuous times, businesses must adapt quickly to survive. It's often easier said than done, but AI at our fingertips makes it more achievable than ever. This article delves into how AI can act as your stalwart companion during challenging periods. In the ever-evolving landscape of the business world, resilience is key. The ability to weather storms, adapt to change and emerge stronger is what separates leaders from followers. However, this resilience isn't a product of sheer will alone — it requires a certain degree of foresight, strategy and an arsenal of powerful tools. One such tool that's proving to be increasingly invaluable is artificial intelligence (AI). During periods of turbulence, AI can serve as a game-changer for businesses, equipping them with the necessary capabilities to not only withstand challenges but also to seize opportunities and forge a path towards growth. This article will delve deep into the heart of this topic, exploring the manifold ways in which AI can act as a protector and enhancer of businesses during challenging times. We aim to provide you with insights, examples and action points — strap in for an enlightening journey into the world of AI in business resilience and growth. Leveraging decision-making AI for proactive problem-solving and decision making AI can be a powerful tool for detecting and resolving issues before they become full-blown crises. Through data analysis and predictive analytics, AI can alert you to real-time potential issues, from supply chain disruptions to unexpected shifts in market demand. When the stakes are high, and decisions need to be made quickly, AI can help businesses navigate uncertainty. AI can provide detailed insights and recommendations through machine learning algorithms that enable data-driven decision-making. AI-Powered risk management Risk management is crucial for any business, but during challenging times, its importance magnifies. By predicting market volatility and providing insights into potential threats, AI can help you mitigate risks effectively. Artificial intelligence (AI) is revolutionizing the way businesses anticipate market volatility. Traditionally, predicting market trends was a laborious task that required teams of analysts to sift through colossal amounts of data. Today, AI simplifies this process, offering faster and more accurate predictions. AI leverages sophisticated algorithms and machine learning (ML) techniques to scan through huge data sets that humans would struggle with. It captures patterns, analyzes anomalies, and interprets economic indicators to give reliable predictions about market volatility. Example: Hedge funds like Bridgewater Associates and Renaissance Technologies employ AI to evaluate complex financial markets. They use these AI systems to predict potential stock price changes based on many factors, including economic indicators, geopolitical events and even social media sentiment. With the help of AI, these firms can process and interpret information far quicker than humanly possible, gaining a competitive edge in predicting market shifts. Spotting potential threats with AI Security threats pose a significant risk to businesses. AI-powered systems can detect anomalies, flag potential threats and even take corrective action, ensuring your business remains secure. The use of AI in identifying potential security threats goes beyond conventional practices. With its deep learning capabilities, AI can examine large amounts of data in real time and find patterns that might escape human detection. For example, a financial institution could use AI to analyze millions of daily transactions. Instead of simply flagging large transactions as potentially fraudulent, AI can identify more subtle patterns that indicate illegal activity. It could look at the frequency of transactions, unusual transaction sizes for a specific customer, or even transactions at odd times. This provides more in-depth insights into the potential threats that businesses could face. Businesses can take the following steps to leverage AI in spotting potential security threats:
Gaining a competitive edge with AI Despite the challenges, tough times can present opportunities for businesses ready to innovate. Using AI, you can gain a competitive edge and position your business for future success. AI for automating mundane tasks -- AI has already revolutionized several sectors by taking over repetitive and mundane tasks, thus freeing up the workforce to engage in more strategic and creative pursuits. For instance, in the retail industry, chatbots have been programmed to handle basic customer inquiries, leaving more complex queries to human representatives. This not only improves efficiency but also enhances customer experience. AI in product development — AI is also changing the face of product development. One example can be seen in the automotive industry. Companies like Waymo, Tesla, and Uber are using AI and machine learning to develop self-driving vehicles. These cars use a combination of sensors and advanced machine-learning algorithms to navigate roads and traffic more efficiently than a human driver could. AI in predicting customer needs — AI and machine learning can also aid businesses in better understanding and predicting customer needs. For instance, Spotify uses AI algorithms to analyze users' listening habits and suggest music that aligns with their tastes, creating a highly personalized user experience. Similarly, Amazon uses predictive analytics to recommend products to users based on their browsing and purchasing history. Creating personalized customer experiences — Customers crave personalization in today's digital world. AI can analyze customer behavior, enabling businesses to offer tailored experiences that boost customer satisfaction and loyalty. Artificial intelligence offers the unprecedented ability to collect and analyze vast amounts of data, including customer preferences, shopping patterns, and interaction histories. This allows businesses to create highly personalized experiences that meet and exceed customer expectations. Examples
The Future of AI in Business With the increasing capabilities of AI, it's clear that its role in business will continue to grow. The future of AI in business looks promising, potentially revolutionizing how we work. The role of AI in post-pandemic recovery is not just significant but transformative. AI technology provides tools and methods to streamline operations, reduce costs, and drive growth, acting as a powerful engine for businesses to rebuild and adapt to the new normal. The global pandemic catalyzed digital transformation, pushing businesses to rethink their operations and strategies. The digitization that was anticipated to occur in a few years got condensed into months, with AI being at the forefront. For example, traditional brick-and-mortar retailers that were hit hard by the pandemic had to shift online. AI played a significant role in this transition, from developing intuitive and user-friendly e-commerce platforms to powering sophisticated recommendation engines that enhance the customer shopping experience. Potential challenges and ethical considerations The use of AI isn't without its challenges. As businesses increasingly rely on AI, issues related to data privacy, ethics and job displacement may arise, requiring thoughtful consideration and responsible AI practices. In a world where change is the only constant, improving your business with AI is no longer a vision of the future but an essential strategy for today. The current era of technological advancement offers both challenges and opportunities, and the smart use of AI will determine who comes out on top. AI is no longer an abstract concept but a real and tangible force in the business world, driving resilience, spurring innovation and powering growth. It's the ally that works round-the-clock, the silent partner that offers deep insights, and the game-changer that provides businesses with an undeniable competitive edge. As businesses around the globe grapple with various challenges, from economic downturns to global pandemics, the ability to harness the power of AI becomes not just desirable but critical. Yes, the path may be riddled with hurdles, such as data privacy concerns and ethical considerations, but the benefits of integrating AI into your business strategy far outweigh the potential drawbacks. The future of business lies in AI — those who embrace it will lead, and those who ignore it may well find themselves struggling to catch up. So, here's to a future where AI and business go hand in hand, a future where resilience is a given, and growth is a sustained trajectory! Source: https://www.entrepreneur.com Image Credit: Pexels.com | Photo by Tara Winstead
Back in the day, having a website was all the craze; businesses that had a website were the big players and people who could afford to pay a huge sum of money. Fast-forward 20 years or so, and a business that doesn't have a website is considered to be the odd one out. Anybody with a laptop, an internet connection and basic technical knowledge can hop on the internet and create a very good-looking website. Jumping ahead another couple of decades, you see Steve Jobs on the stage introducing the iPhone, and people go mad. In less than a year, the app store was launched with 500 apps, and the journey began. Apps are generally viewed as a luxurious addition to the business — a "We'd love to have one! But we have more important things to focus on right now" type of addition. But it's proving more and more essential for a business to have a mobile application. The global mobile app development market size was valued at USD $197.2 billion in 2021. It is expected to reach around USD $583.03 billion growing at a CAGR of 12.8% during the forecast period (2022–2030). The substantial growth of the mobile app market signifies a clear trend: Mobile apps are not merely luxury additions for businesses anymore, but rather critical tools for reaching and interacting with customers. Ignoring this trend could mean missing out on potential opportunities. So, if you want to get your fair share of this huge sum, developing a mobile application is no longer optional. Boosting client interactions: The power of increased customer engagement through mobile apps How often is it that you open your browser on your smartphone and go to a website as opposed to opening your smartphone and just tapping on an app? The contrast is stark. Everybody is on their phones nowadays, specifically on various apps, and your business app could easily be one of those apps. I'm not going to ramble on about how push notifications opt-in rates on the Android OS range from 49% to 95%, with medium equal to 81% — and on the iOS side, they range from 29% to 73%, with medium equal to 51%. But I am going to tell you how an app could easily deliver personalized content to each and every user depending on their behavior: Someone added something to a cart and left without buying it? Send them a reminder to complete the checkout. User X's birthday is today? Send them a complementary discount. Someone expressed interest on several occasions in your posts on the northern lights in Iceland? Send them a trip recommendation this September. Elevating your brand: The impact of mobile apps on visibility and recognition Having a mobile app is essentially free advertising. Every smartphone out there is considered a potential free spot to advertise your business. Think about it this way: Every time your client opens their smartphone, they will see your application. It's like you're psychologically stamping your business in their minds, and what is the result? In the first instance that they require a service that you provide or a product that you sell, you will be the one that they contact. Another aspect of visibility and brand recognition is your brand's colors, designs and even tone of voice. The use of these elements within the app reinforces your brand in the client's mind. And last but not least, if your app contains modern features, such as an easy-to-use interface, a messenger for instant customer support, the ability to personalize content and timely push notifications, your app and your business will be held in high esteem for delivering quality service and being a customer-centric company. Today's business landscape has evolved to such an extent that having a mobile app has shifted from a luxury to a necessity. Mobile apps are essential in enhancing customer engagement. Since they are more readily accessible than websites on a smartphone, and with features like push notifications and personalization, businesses can deliver tailored content directly to their consumers, leading to increased engagement. Having a mobile app provides a significant boost to a brand's visibility and recognition. The continual presence of the app on a user's device, combined with the consistent use of brand colors, design and voice within the app, imprints the brand in the user's mind. Incorporating modern features and a user-friendly interface into the app also positions the business as a quality service provider, elevating its standing in the minds of consumers. In the evolving digital era, having a mobile app is not just an optional add-on but a crucial business tool that offers significant benefits in terms of customer engagement, brand visibility and market share. Source:Entrepreneur.com Image Credit: Pexels.com | Photo by PhotoMIX Company
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