Below is an excerpt of Hashed Data Protects Consumer Privacy that ran in Customer Think written by Jornaya Chief Commercial Officer Matt Lohman.
Consumer data should be sacrosanct. And in this age of digital marketing, there is a balance to be maintained in communicating effectively with customers while protecting their privacy and, at the same time, complying with privacy regulations. In today’s data-driven world, a goal for marketers should be to choose tools that help them to prioritize privacy. Hashing algorithms are one way to do that.
Hashing is the process of generating a value from a text input using a one-way cryptographic algorithm that enables the security of consumer information and data. That one-way function means that personally identifiable information (PII) – any data that could potentially identify a specific individual – is not visible based on the hash code. As a result, the raw data or PII associated with a consumer remains private, as it should be. The consequences of not ensuring consumer privacy are not only an erosion of trust in the brand, there is a quantifiable impact to a business’ bottom line. According to one study, 48% of consumers stopped buying from a company over privacy concerns.