GDPR: how are data protection laws affecting you?

When the new data protection laws became known, companies despaired and saw obstacles in everything. In their perspective, the GDPR (the law in force in Europe) was an absolute obstacle to communication and sales. Today, we are aware that this assessment was beyond dramatic and that customers not only applaud these laws but also demand them from the brands they are consumers of. Didn’t the brands also gain from laws like the GDPR? Ultimately, haven’t we reached a new era of consumption? Discover everything here!

Have we reached a new opted-in consumer era?

The digitalization of societies and the spreading of social networks as tools for free use, have created a blanket of data worth gold for the big tech companies. Consequently, it exposes any privacy and transparency in the relationship between the consumer and the brands. On the other hand, thousands of brands send massive, intrusive, and unauthorized communications – mainly by email. Even worst is that most of the time is sent without any knowledge of the consumers’ profile.

To combat and reverse this system of enormous abuse by some brands worldwide, Europe has taken on the mission of regulating this matter, leading this data privacy process. To this end, it created the General Data Protection Regulation (GDPR). Then, GDPR regulates all movements, interconnections, and storage of European citizens’ personal data. Hence, the GDPR consent management applies both to European organizations and the rest of the world because as long as companies collect and process data from European citizens, they are subject to GDPR compliance.

This movement is already being studied or even followed in other corners of the world – such as The California Consumer Privacy Act (CCPA) – a state regulation intended to enhance privacy rights and consumer protection for residents of California, USA.

The implementation of such laws can cause panic and uncertainty initially. But over time, it only brings advantages: it regulates the market and increases transparency in brands’ relationships with their customers. All agents stand to gain: customers and businesses.

The stages of a CRM strategy are all about what is expected to be the customer’s life cycle. From the first approach as a new customer to a more stable phase of frequent visits, this is the ideal consumer for companies. Thus, a CRM strategy will foster strong relationships with customers and make them buy more often and for longer. In other words, this is customer retention operating.

Over one pair of years in the new GDPR consent management regime, we may ask:

• Have we reached a new opted-in consumer era?
• Are we more informed?
• Are we closer to the brands?

Consumers today carry the expectation of a personalized experience with their selected brands. And for so, they demand respect and privacy when they are sharing their personal data. Like GDPR or CCPA, these kinds of regulations help companies develop and adopt more and more customer engagement tactics. Then, consumers thank and repay their loyalty!

Moreover, they reviewed and confirmed their consent and communication purposes. They easily unsubscribe or opt-out at any time for any channel. Therefore, this ease and transparency make the relationship with the brands more authentic and more extended in time.

2018, 25th May was a date that loomed forever in EU marketers’ minds, as it was the day where the new legislation took off, and fines could be charged. However, it’s fair to say that its impact hasn’t been as adverse as expected. For brands that comply with laws – such as the GDPR – they earn more from it than to lose in the long run.

Indeed, the GDPR effect on marketers (we are witnesses) positively impacted their operations. Of course, large companies have more and better conditions to better understand the scope of the new data controller’s role and fully comply with the law. However, some organizations have seen drastic reductions in their database size from an opposing point of view. Although, solutions like the GETbizz platform with a GDPR built-in help large and small businesses. It gives their customers control over the information they want to receive and by which channel. Embracing privacy laws is a crucial step towards a consistent customer journey that produces results.

Then, we begin to see further evidence of the GDPR effect:

• email and mobile campaigns are more targeted and relevant
• brands are increasing investment in direct channels
• campaign ROI goes up – real consents lead to an increasing engagement
• marketers are testing more campaigns
• a downturn in opt-out rates and spam complaints
• email and mobile (SMS or Push Notifications) deliverability has generally improved
• email click-throughs are higher

Therefore, the efforts to improve data and comply with the GDPR lead to greater effectiveness in campaigns. Moreover, marketers may have benefited from better quality email and mobile addresses in their arsenal post GDPR. This situation will lead marketers to a new era of omnichannel communication. Consequently, they will adopt more advanced tactics in their campaigns, unlocking sales, generating customer engagement, and maximizing brand loyalty.

Definition: Processors are the companies that are subcontracted by Brands (Controllers) to provide services that involve access to citizens’ personal data.

Processors are moving towards the closure of the relationship between the brand and its customer. How?

• placing tools and data after processing, available to its customers – as GETbizz does;
• or, processing only the data in an effective way

Tools as CRM, CXM, CDP, or the GETbizz platform (a combination of all the previous) should streamline the database update processes with the complete customer journey data. Hence, this will avoid the waste caused by highly dubious management lists.

For processors, these laws contribute to regulating the relationship with the companies to which they provide services. Their field of action becomes more precise and more evident with the establishment of boundaries to its responsibility. In another way, limits on its intervention help to define transparency and confidence. In this case, trust and ethics are the most important values for the relationship with the brands that help build. Nobody changes subcontractors every day. Because of this, our work is so exciting!

Find the solution with a GDPR built-in