OPPORTUNITY RATHER THAN THREAT
A MASSIVE SHIFT in how marketing data is managed and applied is the main effect of the new and far-reaching General Data Protection Regulation (GDPR). From now on, brands must stick to serving up information that is requested and relevant. It is privacy by legislative design, affecting every organisation worldwide seeking to connect with European Union residents.
Failure to comply could have crippling financial consequences. The numbers being quoted for breaches under GDPR include penalties in excess of 17 million euros or 4% of global turnover, which means wholesale revision of how brands’ data will be used. Targeting is no longer risk-free.
It is estimated that over 75% of personal information held by UK companies is not GDPR compliant. Moreover, recent research indicates that less than 50% of invitees – and perhaps considerably less – will opt in to receive marketing and sales communications.
Power has crossed to the consumer. Brands will have to engage customers with content that has meaning: no longer based on cookie collections. They must be able to prove that their records were compiled legally. Spam banks are being looted.
AWARENESS
You can stop trembling, however. GDPR is more of an opportunity than a threat. To start with, it has encouraged awareness of what is held on file, and why. Erasing old and unnecessary data is bound to lead to greater efficiency. Refreshed, slimmed-down databases will be easier to use and keep up-to-date. Their underlying values will become more obvious.
For those who are able to communicate openly and consistently well, there are significant rewards to be gained. Customer relations, often laboured and fractious until now, can be boosted by data transparency and explanations about how it is being protected. No more hiding, just best practice.
As never before, it is about communicating with real customers and prospects, encouraging dialogue and involvement, offering respect. It’s directing engagement with people who really want to be informed and have said so.
Every type and size of organisation is subject to GDPR. Within their ranks, the front liners are those working in marketing, public relations, digital development and the creative production sector.
These are the professionals, above all others, who are recognising ways to perform faster and more effectively, because they see clean data ahead. The most innovative will capitalise on what is akin to a fresh marketplace start. They will work out how best to persuade new consumers to opt in.
PREDICT THE FUTURE
It will be easier for them to establish trends and patterns, predict the future and launch new products. No longer will data be little more than a means to look back through history.
Migration towards new technology will be led by marketers, managing demand and improving processes, including, crucially, avoidance of application or security breaches. Consistent care will have to be taken. There is no place for ducking and diving. Solid, worked-through processes must be cemented in place.
Non-marketing colleagues are going to require continuing education about what is permissible and all that should be avoided. It is believed that more than 50% of security breaches have resulted from employee carelessness.
Codes of conduct have been introduced by many trade associations and their members to help with the application of the new rules and to demonstrate compliance. The Information Commissioner’s Office in the UK has set up a register of codes.
GDPR is having a huge impact on how brands go to market. In no way is it a tick-box exercise. This on-going process is the path to genuine customer engagement, which, surely, will result in better decision making and more attractive returns on investments. It should be good for business.
Return to MARKETING INSIGHT BLOGS or go to CONTACT DETAILS
