While there are going to be challenges to implementing the new legislation, if you look beyond the compliance requirements, stricter regulations could be good for your business.
In this blog, we’re discussing some of the biggest setbacks and opportunities of GDPR.
The bad news…
In order to be fully compliant with the new privacy laws, you’ll need to adapt your approach to collecting and processing data. And this will likely mean the loss of much of your database.
This impact could be costly, both in terms of time spent away from other activities and money spent administering the changes. There will also be extra strain on resource for getting your team up to speed and implementing the rest of your plan.
And remember, if the new rules are breached, you may be subject to high financial penalties – which could cost you €20 million or up to 4% of global annual turnover of the previous year.
It’s not just your finances that could take a hit, there will also be commercial implications if you don’t reach compliance. If you are unable to show customers that you can manage your data ethically, this could potentially change their behaviour and switch to businesses that can.
The good news…
Though there are some fearful implications, becoming GDPR-compliant will lead to greater opportunities for your marketing. For example, it will…
Improve the quality of databases
When it comes to collecting data, quality is more important than quantity. Aimlessly collecting countless amounts of data will not benefit your marketing, it will only hinder it. And so, processing data that is meaningful, useful and legally compliant will be much more valuable for your marketing, including lead generation.
More targeted email marketing
Under the new GDPR, you will need to ask your customers to opt in to your communications – and you’ll need to prove they have done so. Yes, you will have to change your email marketing, but it will lead to more engaged customers. As a result, could have higher click-through, open and engagement rates in your email campaigns.
Provide a competitive advantage
If you get your strategy right, complying to GDPR could be a competitive advantage, too.
The information commissioner has stated that those organisations that can prove they handle customer data sensitively and respect an individual’s privacy will have a competitive advantage over those who are not.
Raise the profile of marketing
If marketers move away from box-ticking mentality and show a commitment to creating a culture where data is handled in an ethical manner, it could help to highlight the importance of marketing within your business.