The application of the RGPD ( General Regulation on Data Protection ) is fast approaching; companies are rushing to make the necessary adjustments to comply with the guidelines.
To avoid the hefty fines imposed by the GDPR, many companies are implementing new processes and technologies, in the hope that these tools will allow them to rethink their management of customer data. In fact, recent research shows that organizations are spending millions of dollars on RGPD-related technologies. However, there is still confusion as to the exact choice of technologies to implement to ensure compliance, and most companies consider the imminent settlement deadline as a simple cost-cutting issue.
Rather than seeing the RGPD exclusively as a fine to pay in the event of non-compliance or a foreseeable loss of business, companies should instead approach it as an opportunity for growth. When correctly observed, the RGPD can create a mutually beneficial data exchange between companies and their customers, while offering individuals the explicit choice of their favorite customer experience.
To address RGPD as an opportunity for growth, organizations must begin to centralize all of their customer data in one place and create the holistic views of each of their customers. As this granularity will influence the efficiency with which companies manage their relationships with customers, it is important that this information remains complete, accurate and up to date thanks to the integration of machine learning technologies and prescriptive analysis.
Similarly, the centralization of data facilitates the extraction and demonstration of client consent. For example, sellers can quickly refer to how a customer’s consent was obtained, as well as how long and valid it was. If a customer decides to no more extended approval for a particular activity, sellers can quickly delete the relevant data from a location.
Great Customer Experience
The RGPD has introduced new operational and technological challenges for businesses. However, we must not lose sight of the underlying reason for this regulation: to give customers better control over the confidentiality of their data. If companies cease to consider RGPD as a high expense and instead use it as an incentive to leverage their existing customer data productively, they will be able to take advantage of it as well as the individuals themselves.
For clients, the RGPD creates a legal framework for sharing their data and provides them with a new level of protection and transparency, which did not exist beforehand. Clients know exactly how and why their data is used because they have the right to grant or deny consent before this information can be used. As a result, customers, enjoying greater autonomy over the use of their data, are more willing or open to sharing and are adequately protected. In turn, with more targeted data, brands know each customer better and can create more relevant offers and interactions.
Finally, as non-compliance with GDPR results in a cost that is too high – between fines and the loss of customers who feel that the confidentiality of their data is not being respected, companies are forced to reconsider how they process customer data and implement new processes and technologies that empower customers with their data. It is a positive point: businesses and their customers can, in essence, collaborate on personalized, customer-driven interactions. Timely and relevant, these connected experiences strengthen your customers’ trust in your brand and enable your company to optimize its customer relationship strategy, in the spirit, but also beyond, of compliance with the RGPD.
With the RGPD, companies will treat their customers with greater respect by letting them explicitly choose the customer experience they want to join. Add to this the likely decline in third-party data, and businesses will need to refocus on developing and maintaining long-term customer relationships and making customer orientation their ultimate goal. Centralizing data and close listening to customer preferences will enable businesses to build long-term loyalty and drive profitability by providing customers with more personal and engaging experiences while remaining compliant with the GDPR.
Also published on Medium.