In the digital age wherein every transaction involving individuals entails the use of personal data, it has become important for businesses to not only ensure that said data is protected, but to also be transparent on its usage.
With a privacy policy, customers will be able to know what type of data is being collected from them, how much is being collected, and for what purpose.
This is precisely the reason why the privacy policy has become one of the most important documents that businesses must have today.
In a webinar title “Data Privacy in the Philippines: Changes So Far and Next Steps,” Union Bank of the Philippines (UnionBank) vice president and Data Privacy Office head Cheska Montes said to create a privacy policy that is relevant and comprehensive, businesses must first assess if they would have any use for the personal data of customers.
“If they do, they will have to map the customer journey, like how personal data is being collected, processed, used, stored, and retained, and ultimately erased. If they map that out, they can easily draft their own privacy policy,” Montes said.
She said micro, small, and medium enterprises (MSMEs) whose products and services are accessed by customers through digital channels like websites, e-commerce apps, or social media are those that must have a privacy policy.
Not only will this ensure that customer data is protected, this will also promote customer trust, and in turn, higher customer retention rates.
“It's very vital for MSMEs to put their privacy policies in place because that's how the consumers would trust them more and that's also how they will be able to scale up,” Montes said.
“Once they have a trusted patronage, their business will grow,” she added.