Over the last few months, there have been eye-catching reports focused on the new GDPR’s fines that could cost corporations €20m or 4% of their annual turnover alongside headlines stating that the legislation could put organisations out of business. These news reports have had a lot of attention and highlight why people have been viewing the implementation of new GDPR negatively.
However, the regulation isn’t nearly as formidable as people seem to think. The legislation highlights the importance of safe data, with a recent Accenture report stating that 87% of consumers believe it’s important for companies to safeguard the privacy of their information. The new regulation is waking CEOs and MDs up to how valuable data is, and is leading to a more creative and efficient output when it comes to data handling.
Six reasons why the new GDPR is a positive development:
With 92% of marketers viewing the new GDPR as a positive change to the way marketing is currently done, it’s clear that the regulation is an opportunity to deliver better services to your clients. The new GDPR will improve:
- Data quality: As the GDPR will mean that a large portion of your data will have to be removed, it gives you the chance to make the most of the data you already have and really analyse how you can use it effectively. Having quantitively less but more accurate data is always more favourable than having a substantial amount of useless data.
- Data storage: Data ages extremely quickly—even data that’s mere months old can still be out of date. Having to store and sift through information that’s no longer usable is not only a waste of time, but also of resources (such as data storage applications) and money. By removing out of date information, you’re not only reducing your overall data volume but increasing the quality of the data that you do hold.
- Security: Data breaches are rife in the media, and corporations that do experience data breaches are subject to a bad reputation. As an example, you may remember Uber’s data breach back in 2016 (that only came to light in 2017). Uber revealed that the company became aware of a data breach that potentially exposed the personal information of 57 million Uber users and drivers. However, the company reportedly chose to pay the hackers $100,000 to delete the data they stole and keep the breach a secret, instead of alerting those affected by the hack. This decision lead Uber to become chastised by authorities—such as The Federal Trade Commission—breeding a deep lack of trust within their consumers. Cases such as these highlight how important the new GDPR is, and by adopting the better policies you’re only benefitting your company.
- Client trust: Better security leads to increased client trust. Taking Uber as an example, the scandal and cover up of the incident resulted in a significant loss of shares for the company. As well as this, the hashtag #DeleteUber prompted more than 200,000 users to delete the company’s mobile app. Demonstrating you’re compliant with the new GDPR will only increase your client’s trust within your firm. Not doing so could result in massive loss for your firm.
- Future proofing: The new GDPR is not a one-and-done deal—it’s not something that we’re all talking about now, but will be forgotten by this time next year. In an age where the fuel behind technology’s increased rate of progression is data, it’s clear that data is extremely valuable. This legislation is not the final frontier, but the beginning of more stringent data regulations. By ensuring you’re fully compliant within the GDPR, you’re setting your firm up to be more than ready for the legislations that are sure to follow.
- Operational insight: By preparing for the GDPR, firms have the opportunity to see what data is currently being used, how data is being used and if it’s being optimised as well as it should be. This is a real opportunity for businesses to set up data-centric practices that can better optimise your firm in the future. By developing new processes of data management, firms can determine how to run the business better, attract and keep more clients.
A new beginning…
Despite the fear and apprehension of the new GDPR, the end result will be better for both B2B firms and clients. The legislation is a fantastic opportunity for firms to really delve into the data they have and to use it in effective, exciting new ways to the benefit of their clients.
If you’re not quite sure how the new regulation will positively impact your firm, and have some questions around what will happen with your firm after the 25th May, ask our Q&A to find out the answers.
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