Are you looking forward to the GDPR? We sure are, but we understand if you’re nervous. The GDPR’s recent portrayal in the press is frightening: warning companies about €20m fines and listing complicated requirements like appointing a Data Protection Officer.
Sure, you need to get ready for the new regulation, but it’s not there to make a quick buck in fines and trip companies up. The regulation has its benefits, and here are our top three.
The GDPR recognizes the value that EU citizens place on their data and how it is handled. In the age of customer-centric companies collecting and leveraging large amounts of data, it is becoming more and more important to reassure customers that no third parties have access to their data.
So, companies who are GDPR complaint have a huge advantage. By proving to customers that their data is safe, and that they have the right to be forgotten, you’re telling them you can be trusted with their personal information. This higher level of trust means they are more likely to buy products and services from you, which translates into higher revenues for your company.
2.Quality over quantity
The regulation’s focus on first-party data (data directly acquired from a customer) means that the data you are storing about your customers is of the highest quality – since it came directly from them, with their agreement. The permission to keep and use this first-party data guarantees access to better leads and higher conversions. By analyzing this data, companies are also able to better understand their customers. This allows them to extract real value from the data and increase conversions even further through advanced targeting.
Third-party data stored without consent is of poorer quality as these users did not choose to interact with your company – they may have no interest in your company’s products or services. While third-party data increases the volume of your data, it does no favors in terms of quality. With up to 85% of all data stored by companies being considered ROT (redundant, obsolete or trivial), the cost of server space, money and time is immense. Getting ready for the GDPR is an opportunity to trim the fat.
3.Cohesion across the EU
Before the GDPR came along, data protection in the EU was taken care of by the Data Protection Act. It was a directive, meaning EU members had to ensure adequate protection of citizens’ data, but how they achieved this goal was left up to them. This led to a huge range of different rules and regulations across Europe, making it difficult for companies operating across multiple countries within the EU, as they had to meet different conditions regarding data protection when crossing borders.
One of the GDPR’s objectives is to provide a clear framework for all EU companies to follow. This will make operating across Europe and engaging in partnerships much easier and clearer, protecting consumers at the same level across the Union, reducing uncertainty and costs.
Take time to recognize the benefits
The main goal of the GDPR is to ensure users’ personal information is used only with their consent and to achieve consistency in data protection regulation across the European Union. Both are essential for digital commerce and marketing to remain sustainable and competitive for consumers within the EU. The benefits are not just limited to consumers though – if companies take full advantage of becoming fully compliant, they stand to benefit through greater trust from customers, and cross-border and competitive advantages. Which is why we find that the GDPR ain’t so bad after all.
The GDPR, the EU’s General Data Protection Regulation, comes into force on 25th May 2018. Companies operating in the EU will be expected to respect EU residents’ rights on personal data stored by these companies. This means that personal data must be protected, and users have the right to have their data altered or deleted.
This blog post looks at some actual GDPR text to see exactly what is (and isn't) about to change. Read it now.