Recently, we’ve been exploring the importance of website privacy policies. In part one, we reviewed the basics, why they are important, what they do, and how you can get started. Now, we are digging deeper into why your website’s privacy policy isn’t just a regulatory checkmark, but a smart move for your firm’s growth.

With state, national and global regulations, a website privacy policy is essential if you are collecting any type of information. But that’s just part of the story. The time and resources spent on establishing and sharing your policy is also a good business investment. In fact, a recent study by Cisco found that companies earned an average 1.8% return on investment from privacy-related expenditures.  

Let’s explore the real and very relevant business advantages of having a privacy policy.

Building & Maintaining Trust: In the investment world, trust is your currency. A privacy policy is a clear signal to your prospects, clients, and partners that you value and protect their data. It helps maintain trust and is a tangible reminder of your firm’s integrity. And that matters -- nearly 80% of US adults are concerned about how companies use their data (Pew Research Center) and 33% of users have cut ties with companies because of privacy concerns (Cisco).

Risk Mitigation: A well-crafted privacy policy isn’t just proactive; its protective. It can minimize misunderstandings and disputes that could lead to legal action. In the event something does go wrong, having a transparent, up-to-date policy demonstrates that your firm took reasonable steps, which could limit your liability.

Credibility & Authority: Having a privacy policy positions your firm as an established business and an authority in your space. It shows that you’re operating with structure, foresight, and integrity.

SEO Boost:  Having a privacy policy sends a more authoritative and credible signal to Google, Bing, and other search engine bots that are indexing websites. While it’s not a direct ranking factor, a privacy policy adds to your site’s overall authority and trustworthiness, two important signals search engines use when deciding ranking.

Better Data Management: Creating or editing a privacy policy forces organizations to think through how data is collected, used, and stored. This important exercise often uncovers opportunities to tighten practices, improve security, and become more intentional about the data firms have and need.

Improved Marketing Efforts: Data-driven marketing efforts are essential to cut through the noise in today’s busy marketplace. Having a privacy policy is the first step to ethical data collection and builds a strong foundation for future marketing efforts.

Website privacy policies are about more than just meeting regulatory responsibilities. They are powerful tools that can help you build a stronger, more credible and profitable business. If you are ready to transform your website into a growth engine for your firm, let’s talk.