A privacy policy for usage data outlines how a company collects, uses, shares, and protects any usage data they gather from customers using their products or services. Usage data refers to information generated through a user’s engagement with a site or app. It provides insight into how individuals are interacting with the product. Having a clear privacy policy helps build user trust and comply with data protection regulations.
What is usage data?
Usage data is information collected automatically by a website, mobile app, or other digital product about how users engage with the product. It shows the functionality and features that people use. Some examples of usage data include:
- Pages or content areas visited
- Buttons clicked
- Searches performed
- Items purchased or added to a shopping cart
- Videos viewed
- Ads clicked or interacted with
- Device information like screen size, browser, or operating system
- Session duration and frequency
This data allows companies to better understand user behaviors and interests. It provides insight that can be used for analytics, personalized experiences, product improvements, and more tailored advertising. Usage data is different than personal information like names, emails, addresses, and financial details.
Why have a usage data privacy policy?
There are several important reasons companies should have a usage data privacy policy:
- Transparency – Being upfront about what usage data is collected and how it’s used builds trust with customers.
- User control – The policy gives users more control by allowing them to make informed decisions about sharing their usage data.
- Legal compliance – Many regulations like the GDPR require companies to explain their data practices.
- Limit data use – A policy encourages reasonable, ethical uses of usage data.
- Security – Outlining protections reassures users their data is safeguarded.
Without a usage data privacy policy, companies risk damaging consumer trust and may violate certain laws. Policies protect both the business and its customers.
What to include in a usage data privacy policy
A usage data privacy policy should clearly explain:
- What usage data is collected automatically
- Sources of the usage data
- Purposes for collecting and using the data
- Any third parties data may be shared with
- How long usage data is retained
- Steps taken to protect the data
- Whether the data is anonymized or aggregated
- How users can control usage data collection
- How to contact the company with questions
Being transparent about each of these areas allows users to be fully informed. The exact usage data collected and policies will vary for each company based on their products, services, and business needs. But the privacy policy should capture key details in plain language.
Usage data collected
Be specific about the distinct types of usage data gathered through your digital products. Providing detailed examples gives users the clearest picture of what information they are sharing. Some usage data that is often collected includes:
- Device data like operating system, browser version, screen resolution, etc.
- Clickstream data showing user navigation paths
- Search queries entered
- Buttons, icons, or menu items clicked
- Pages or content areas visited
- Videos watched and duration
- Ads viewed or clicked
- Purchase transaction details
- Crash data and performance issues
Sources of usage data
Explain where usage data comes from, which is usually the user’s device and your company’s tools for collecting analytics and metrics. Common sources include:
- Website analytics like Google Analytics, Adobe Analytics, etc.
- Mobile app analytics through SDKs or APIs
- Cookies tracking usage on your website
- Web server logs analyzing traffic
- Tracking pixels for ad performance
- Social media interactions like likes, shares, etc.
Purposes for collecting usage data
Describe how you use usage data to give users more control. Typical purposes include:
- Personalizing and optimizing the user experience
- Improving existing products and features
- Developing new products and features
- Analyzing trends and traffic patterns
- Tracking conversions and sales performance
- Responding to crashes and user difficulties
- Serving relevant advertisements
Third party sharing
If usage data may be shared externally, disclose this. Many companies share data with service providers, advertising partners, or firms assisting with analytics and data enrichment. Be transparent about these relationships.
Data retention policy
Explain how long usage data is retained before being deleted or anonymized. Data is often kept for a limited period needed to fulfill the purposes outlined.
Data security protections
Briefly summarize the administrative, physical, and technical safeguards taken to protect usage data. This shows users you take privacy and security seriously.
Anonymization and aggregation
Using anonymous, aggregated data can help protect user privacy. Anonymizing removes identifiable information like usernames. Aggregation combines individual data into summary statistics and trends.
User choices and controls
Describe any options users have to limit usage data collection, like disabling cookies in their browser. Allowing choices gives users more control.
Company contact information
Provide complete contact details so users can get in touch with questions or concerns, including email, phone, and mailing address.
Usage data privacy policy examples
Looking at examples from real companies can help illustrate what effective usage data privacy policies contain. Here are excerpts from several leading companies’ policies:
We collect information about your activity in our Services, like the types of content you view or engage with or the frequency and duration of your activities. For example, we log when you’re using and have last used our Services, and what posts, videos and other content you view on our Services. We also collect information about how you use features like our camera.
Uber
We collect technical information when you use our Services, including internet protocol (IP) address, MAC address, device identifiers, device operating system and version, browser type and version, mobile network information and standard web log data. We use your IP address to derive your approximate location, so we can comply with applicable laws and provide you with relevant offerings and Services.
Spotify
We automatically collect certain types of usage information when you visit our website or use our music streaming application. For example, we collect your IP address, device and browser information, operating system version, and Spotify application version and components. We use this information to help diagnose problems, and administer and improve our website and application.
Best practices for usage data policies
Some tips for crafting effective usage data privacy policies include:
- Keep language simple, avoiding complex legal jargon
- Be concise but thorough in explanations
- Provide definitions of key terms like usage data
- Regularly review and update the policy as practices evolve
- Allow user choice and control where possible
- Follow relevant data protection laws and localization requirements
- Make the policy easy to find via site navigation and menus
Conclusion
A usage data privacy policy clearly explains how user information generated from product interactions is handled. Being transparent about collection and use of usage data allows consumers to make informed choices and builds trust. And having a policy helps demonstrate a commitment to ethical data practices and legal compliance around user privacy. As usage data becomes increasingly valuable for businesses, protecting it responsibly through privacy policies benefits both companies and their customers.