Data Privacy Standards and GDPR Compliance – Consent is Everything
Whether you have a business based in the EU or not, the recent bundle of new laws concerning data privacy known as the General Data Protection Regulation (GDPR) matters. This legal framework's new compliance standards enacted early last year was drafted with the intent of handing the reins of personal data back to the citizens of the EU and works to extensively increase fines to businesses and organizations for the misuse of data.
So how does this affect you and why should you care about data privacy standards and GDPR compliance? In this article, we'll be answering these questions and more as we break down the impact and implications of such regulations.
What You Need to Know About Data Protection
The data to which the GDPR refers includes a wide array of personal information, such as an individual's name and location, voting preferences, shopping activity, and other data gathered from websites to learn more about a consumer.
Let's take a look at the behemoth social networking website Facebook, a company notorious for the rigorous amount of data they collect from users. Facebook monitors every advertisement a user clicks on, a user's IP address, every friend in the user's network, every news story or post a user likes, and essentially, all of a user's activity, which they sell.
Facebook's data-mining practices have put the company's chief executive, Mark Zuckerberg under serious scrutiny and has led to users leaving the platform in droves. Most companies leverage user data in some way, and all have something to glean from Facebook's mishaps.
More About the GDPR
The stakes are pretty high when it comes to non-compliance, with either a max fine of 20 million euros or 4% of the company's annual revenue of the prior year—whichever comes to a higher amount. The GDPR also states that EU consumers can now have a say in how their data is being used and whether or not a company is permitted to use their data at all.
Does this Affect You?
If you're a company with a reach in the EU, then yes, the GDPR applies to you. If your business is not based in the EU but does handle the personal data of EU citizens in any way, you are subject to the rules and requirements of these new data privacy standards.
The biggest takeaway regarding the impact of the GDPR and its impact on businesses has a lot to do with consent and transparency when it comes to what personal data is being used and how. Companies are required to ask users for permission to collect their data, which of course can have serious implications on how businesses approach customer engagement strategy.
How Businesses Stand to Benefit
The GDPR is a game changer for sure and will indubitably shake up the way businesses operate, but for companies that already embrace a more customer-centric approach that focuses on personalization and obtaining data willingly from happy users, it will be much easier.
Here are a few ways your company can actually benefit from the GDPR:
Change your approach for the better
Companies will now have to get creative and rethink how they can legally approach things like user engagement, analytics, and advertisements.
Approaching customer engagement strategies based on user permission will actually yield increased loyalty. Being more open and transparent with users and clearly explaining how you intend to use their data will open the doors increased trust and loyalty.
The GDPR is here to stay, so sober up! A study on data privacy revealed that a whopping 92% of consumers demand control over their collected personal data and how it's being used. Companies shouldn't ignore, but rather embrace the new standards and see it as an opportunity to not only amend the ways in which they engage with users, new and old, but to ensure the longevity of a business through enhanced security.
No business can withstand the risk brought by cybersecurity and what the cost is of data breaches. The GDPR helps push companies to take security and data privacy seriously which can help establish a healthy data infrastructure and a security workflow users can trust.
Boost Marketing ROI
Sure, data is harder to come by now with the stricter set of data standards and guidelines, but your marketing ROI has the ability to flourish if your company can win over users who are willing to share their personal data. These relevant leads are crucial because they are coming from users who actually want to hear from your business.
This data will help your business fine-tune and play around with a more granular marketing strategy by modifying your message to an audience that cares and is willing to listen.
Times are a changing, so get ready to adapt and embrace a new marketing approach. Not quite comfortable with all the new regulations and privacy standards when it comes to things like data, data analytics, and security?
EmergoTech offers a wide array of tailored solutions, and specializes in navigating the complex world of data analytics to increase profitability by adhering to data privacy standards. Let us help you so your business can focus on what it does best. Get started with Emergotech today!
March 25th, 2019 - 5 min read