Multicultural consumers, accounting for over 120 million people or 38% of the total population and more than $3 trillion in buying power, are a growing and vital segment of the U.S. population.
Given their significant cultural and economic impact on the market, multicultural consumers are more likely to be concerned about their privacy than White consumers due, in part, to several factors, like discrimination, language barriers, and lack of awareness of consumer rights.
Therefore, it is crucial for businesses collecting and using zero-party data from multicultural consumers to have a robust data governance process that demonstrates a commitment to protecting consumer privacy and using data responsibly.
Data Risk Factors for Multicultural Consumers
Here are a few specific data risk factors that highlight the importance of data governance for multicultural consumers:
- Multicultural consumers may be more likely to be targeted by fraud. Fraudsters may assume they are less familiar with the English language and societal norms, making them vulnerable or less likely to report fraud because of fear and other external threats.
- Technology use among multicultural consumers is on par or slightly higher than White consumers, which makes them more likely to be impacted by data breaches. Multicultural consumers over-index on mobile and social media use, which are often targets of cyberattacks.
- Multicultural consumers may have unique privacy concerns driven by cultural beliefs, which may differ from White consumers. For example, some cultures have taboos about sharing data with medical or government entities and resist it due to fears of how that data could be used against them.
Data Governance Best Practices
Businesses can show their commitment to data governance by taking the following steps:
- Be transparent about how data is collected and used, and make it easy for multicultural consumers to access, manage, and delete their data. Keep consumers in control.
- Use data responsibly, respecting the consumer and their right to privacy. Just because consumers are on the internet does not mean their data is up for grabs. This means avoiding fraudulent practices and using data to improve the customer experience, not to exploit it.
- Businesses should also educate multicultural consumers about their data privacy rights and how to exercise them, making that information easily accessible. That information should also be made available in various languages to reduce barriers to access.
By taking these steps, businesses can build trust with multicultural consumers and demonstrate their commitment to protecting privacy. Data governance is essential for companies that want to succeed in the increasingly diverse U.S. marketplace.
This blog post was originally published on MediaPost.