Safeguards: A Guide to Dealership Customer Data Security

Automotive dealerships today possess consumer data that can include personal information and also financial details. This information is required to be safeguarded to protect the dealership and customers. The GLBA Safeguards Rule is a standard set that requires organizations to create, maintain, and protect data. It mandates that organizations must provide ongoing training to employees handling customer data.

Companies who are involved in finance are bound by the GLBA, which mandates that financial institutions must comply with its criteria. The law defines financial activities broadly, but includes car financing, and dealerships are required to comply.

Dealers who stay up-to-date with the rules and regulations around protecting customer data are more likely to maintain consumer trust, avoid breaches, and remain compliant with federal laws.

Importance for Automotive, Powersports, and RV Dealerships

Dealerships have access to customer data, including credit reports, social security numbers, and driver’s license numbers. Information should be secure, since transactions with the dealership require sharing this information. Dealerships are required by law to implement comprehensive safeguards for customer data to avoid loss or misuse of data, since this may lead to potential breaches or damage to their reputation.

Recently, data breaches at automotive dealerships have spiked because of deficient data security protocols. This is problematic since data breaches can lead to legal repercussions and damage to a dealership’s reputation. The Safeguards Rule is a framework for dealerships to oversee and bolster data security defenses. This is important for dealerships, since data has become an essential component of automotive marketing, gives an insight into customer behaviors, and is also subject to stricter privacy regulations.

Tie-In to Consumer Marketing

Proper handling of customer data is a key part of building customer relationships. First, using and protecting data will lead to excellent communication and build trust with customers. As customers’ trust dealerships, safeguarding information will encourage customer loyalty to that dealership. Consumers will always revisit a dealership where data is protected, instead of one where a breach has occurred. Properly protected dealer-customer data can offer insight into marketable data segments.

Second, the way data is used will influence the success of active marketing strategies. To be competitive, dealerships who use customer data ethically and transparently will not risk losing consumer trust. A robust data privacy initiative prevents many data breaches and improves dealership advocacy. All in all, enforcing safeguards is important when marketing customers, acting as a key driver for maintaining customer trust and loyalty.

SOC 2 Type 2 Compliance and Safeguards

When choosing a marketing partner, considering the data security and protection that partner has is critical. The highest type of data security is SOC 2 Type 2. This is a framework of standards based on the five trust principles developed by the American Institute of Certified Public Accountants (AICPA): Security, Availability, Confidentiality, Processing Integrity, and Privacy.

SOC 2 audits are considered the most rigorous, since they review if a company can control and secure its processes over time. When working with a SOC 2 certified vendor, data is kept secure using implementation of standardized controls as the AICPA defines.

Partnering with Automotive Product Consultants

The rise of cyber threats requires that automotive dealerships become vigilant guardians of consumer data. SOC 2 Type 2 compliance ensures a comprehensive approach to data protection. Our SOC 2 Type 2 designation means our team is qualified to help dealerships safeguard critical data and offer data privacy in their overall customer communication and marketing practices.

APC is a leading provider of post-sale vehicle service contract marketing for the automotive industry – an ideal partner for dealerships. We have earned SOC 2 Type 2 certification for our entire suite of services and invest in client privacy and robust data protection. Achieving this further validates APC as a trusted and secure partner for its users and their data assets.

At APC, we offer automotive, RV, and powersports post-sale marketing programs at no-cost to dealers. These programs market to customers and educate them about the benefits of buying VSCs from your dealership.

We encourage you to contact us to learn how a post-sale vehicle marketing program that will drive sales and revenue for your dealership. Reach out to us today for a free program demo.

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The Impact of Extended Coverage in the Electric Vehicle Market

Customer Loyalty, Electric Vehicles

Did you know that more than 10 million electric vehicles are on the road worldwide today? To put this into perspective, that figure was only 53,000 in 2012, representing a massive 18,000% growth in the EV market. As the EV market continues to thrive, exploring the benefits of vehicle service contract coverage, the costs associated with electric vehicle repairs, and the unique technical requirements of these environmentally friendly vehicles is essential.