Consumer awareness of corporate data collection policies increased significantly in 2012. Heading into 2013, consumers will increasingly expect businesses to protect their privacy, according to a recent CNET article.

"Brought on by numerous privacy policy changes to high-profile social networks … by fast and loose trendy mobile app policies, and by shockingly large data breaches at companies that just can't be bothered investing in better database protection, privacy is becoming a key security topic," wrote CNET's Seth Rosenblatt.

The site reported that government organizations are pushing for stronger data protection in the interest of consumer privacy. Companies that choose to be proactive in their privacy measures by taking steps such as using data encryption software may have a competitive advantage in light of heightened consumer expectations.

A TechTarget article noted that companies should be careful not to put the goals for their analytics campaigns ahead of customer privacy. However, businesses that showcase their commitment to protecting individuals' data may stand out from the competition and even encourage customers to share more information, according to Noah Lang, vice president of business development at Reputation.com.

He said that companies that make it clear how they are using customer data and provide individuals with a greater sense of control can build better relationships. Better defining plans for data use can also help organizations control risk. Lang said that the best way to improve consumer privacy may be to be selective in what information is gathered.

"There are always interesting things you can do with data down the line," he told TechTarget. "But that's the number one place you can reduce risk: Don't overcollect."

By gaining a better understanding of what data they are collecting, companies will know what type of protection measures to take. For instance, companies gathering personally identifiable information will need to consider data compliance, encryption and access controls., Lang said. To reassure consumers that their privacy is being taken seriously, data collection efforts should be balanced with strong security measures.