Turning GDPR from challenge to opportunity with a CDP
Over the last decade, the question of personal data and privacy online has become more pressing than ever. Since 2018, the implementation of the General Data Protection Regulation (GDPR) law across the European Union (EU) has made this concern even more critical: companies failing to give proper attention to customer data management can now be faced with severe penalties. But there is good news in all of this. This blog explores how to turn the GDPR challenge into an opportunity for greater results for your business using personalization.
What is GDPR?
With the issue of personal data becoming a central aspect of business ethics, the recent implementation of the General Data Protection Regulation (GDPR) in the European Union was a significant step forward. The regulations impact a customer's rights regarding their personal data and govern what a company can do with said data. While the law was made and implemented by the EU, it also applies to any company that makes its website and services accessible to customers in the EU.
What does the GDPR impact?
Here are some of the regulations your company needs to follow since the implementation of GDPR:
- You can only collect personal data if you have a legal reason to do so, also known as 'legitimate interest'.
- Customers must see how and why their data is processed, often through a privacy notice.
- Data can only be collected and processed when subjects give their informed consent freely and openly, and this consent can be withdrawn just as easily.
- Customers have a right to request immediate deletion of their data.
- Customers can request a digital copy of the data
If you want to know more about GDPR, read the EU compliance page
In simpler terms, GDPR ensures that customers have more control over their personal data and its use while making companies more accountable. For businesses, this means: transparency with customers is key. Failing to comply with GDPR fully brings many risks. Non-compliance can be penalized with significant fines or even data processing bans. You also risk damaging your reputation if customers' data rights are not respected.
How does GDPR affect small companies?
For smaller companies, GDPR is the same for larger organizations. However, a smaller company faces different challenges when dealing with data: for example, you may not have the resources to employ a team dedicated to data management and compliance. One way to turn this challenge into an opportunity is to adopt a Customer Data Platform (CDP).
How a Customer Data Platform (CDP) can help you comply with GDPR
A Customer Data Platform (CDP) can help you find your way through tricky GDPR policies while also providing additional benefits for your company. Providing you with a single hub that collects and holds all of your internal and external customer data can give you the assurance you need of GDPR compliance. If you use Datatrics' CDP, you can quickly meet today's privacy regulations: for example, if a customer wants you to remove all of their personal data, it can be done automatically across your entire system, saving you time and effort – while ensuring compliance with GDPR.
Creating personalized experiences ethically with a CDP
With a CDP, you can ensure that you collect the right data ethically and responsibly. With the steady decline of third-party cookie usage thanks to the growing importance of customer data consent, a CDP can help you focus on data for which prospects have given their permission, known as zero- and first-party data. This consent means you can use the data to create personalized customer experiences, like showing a specific offer on a landing page or using an algorithm to recommend a product to a customer. In short, you can offer customers the personalized experiences they expect while using their data fairly, ethically, and transparently.
Want to find out more about how a Customer Data Platform can help with the fall of third-party cookies? Read 'The future of cookies and how a CDP can help.'
Three benefits of a CDP
Why should your company adopt a CDP? Here are three benefits it offers:
1. An ideal tool for today's privacy measures.
A CDP lets you manage personal data carefully and effectively. You can automatically remove customer data across all channels if required while collecting necessary zero- and first-party data to optimize the customer experience.
2. Using data to grow your business
With a CDP, you have a central point where all your internal and external data is collected. All the relevant teams in your company can access this, including the marketers and data scientists, allowing you to make data-driven decisions.
3. Taking the customer experience further and increasing revenue
By utilizing data from customers, you can offer personalized experiences. This can help increase conversions and ultimately revenue, as you can show customers the right content at the right time. If you want to learn more about creating tailored, personalized experiences, read 'The advantages of marketing automation for the customer journey.'
Keeping data safe while creating better customer experiences
GDPR and the gradual move away from third-party cookies have made data management a pressing concern for any business today that is digitally active – and that's almost every business in the game. By adopting a CDP, you can stay ahead of the curve, managing data ethically from a central hub point while also taking advantage of what this data offers. Altogether, a CDP is a tool you cannot afford to ignore.
Are you looking for effective and efficient ways of managing your data in the age of GDPR? Try out Datatrics' CDP for free. It is the ideal solution to your data concerns, helping to collect, clean, and organize your customer data in real-time while complying with today's privacy concerns. If you want to know how Datatrics handles your data, read more here: 'GDPR and data privacy.'