The world runs on data. And businesses that collect and process them are extremely valuable and powerful. But then, no one has the right to intrude on data privacy and violate their customers trust no, not even the massive brands that drive the global economy.
Notorious incidents like the Wells Fargo scandal in 2016 led us to believe that we live in the worst time of data security.
Here’s what happened. Employees at Wells Fargo were accused of opening more than 2 million unauthorized bank and credit card accounts without informing their customers about it. The now-former CEO John Stumpf came under strict scrutiny for fostering such high-pressure cross-selling practices that spawned the scam.
The world has dramatically changed over the last 24 years. Misuse of internet and personal data today is fundamentally different than it was in the past. Therefore, it became crucial to replace the outdated Data Protection Directive (enacted back in 1995) with something more stringent and rigid for the 21st century.
What is GDPR and what does it mean for your enterprise?
GDPR or General Data Protection Regulation is a set of rules regularized by the European Union in 2018 to define the digital privacy of its citizens. At its core, GDPR gives people more control over their personal data while at the same time let businesses enjoy benefits from the digital economy.
Under this new reform, organizations have to ensure that no personal data is gathered illegally and are obliged to protect them from misuse and exploitation. Severe penalties are laid out if the rights of data owners are compromised in any way.
Who does GDPR apply to?
- Any organization that operates within the EU
- Any organization that operates outside of the EU, but offers goods and services to people in the EU.
A few other Global Data Protection Laws
California Consumer Privacy Act (CCPA)
California Consumer Privacy Act (CCPA) is the set of data privacy rights enforced to protect the citizens of California. It regulates what businesses can do with the collected data and also gives users the right to have any information deleted according to their will.
It requires businesses to disclose what data is collected, what they intend to do with the collected data and gives users the right to have any information deleted based on their accord.
International Organization for Standardization (ISO)
International Organization for Standardization is a family of standards that dictates how the financial information, intellectual property or employee details will be managed within an organization.
ISO compliance can be an external stamp of approval where customers of an organization demands documented proof of compliance or be an internal code of conduct for employees.
Making Way for New Customer Experience
Now that a lot of compliance laws and tactics are streaming the market, it is time we shift our goals. Up until now, the marketing industry is seen focusing on the kind of impact these laws will have on a buyer’s intent. But ironically, that shouldn’t be the prime focus.
Rather, as an organization, you should emphasize on offering permission-based ways of meeting your customer needs. Own your responsibility and stay current with your customer concerns.
Wondering how to get started?
3 Tips to level up your customer experience game
1. It is all about building trust and transparency
Imagine, it’s a lazy winter afternoon and someone knocks at your door asking you to take a survey without giving you any specifics on what it is about. Get the level of frustration? Trust us, the online sentiment is no different.
Make your customers aware of the 5 “w’s” and 1 “h” of your data collection practices. Once you gain their trust, to have them on board will be a piece of cake.
2. Always build first-party relationships
We are in that phase of marketing where customers are the gatekeepers. You need to offer them something very powerful to successfully build a one-on-one connection.
Transparency, quality marketing tools and a personalized, permission-based environment should do the trick.
3. Spell out their rights
Show them exactly what you are collecting and narrate their rights against your brand rights. Be upfront about all specifics and produce every detail in writing.
It is always nice to have a written policy in place (mandatory now!) and is expected as a part of customer experience too.
Conclusion
As an active part of delivering a unified consumer experience, it is important that you understand a customer’s buying journey. Data privacy is a critical component that requires attention for it yields maximum results.