Over the past years, companies have been bombarded with news and opinions on the GDPR. Who will be affected? Are companies prepared? Will the deadline be extended? How are companies going to find a Data Protection Officer in time? What even is a Data Protection Officer? GDPR, as companies know by now, is the highly discussed, not-so-eagerly anticipated General Data Protection Regulation. These new privacy regulations give company officials more control over how their personal data is collected, stored and maintained. Considering every effect that GDPR has on companies, these new rules also give them the power to significantly enhance the customer experience.
What is GDPR?General Data Protection Regulation or better known as GDPR is a new set of privacy regulations ruled out for consumers. These rules mainly control how companies can maintain, share and store the personal information of their customers. As a part of this new regulation, customer consent forms to be one of its important elements. GDPR requires companies to obtain consent from their customers before they collect, store or share any of their personal data. This consent must inform the consumer so as to what type of personal information is being collected and the purpose for using their data. GDPR regulations require companies to maintain communication with their customers. In addition, it requires companies to open a line of communication with consumers so they can request to access, adjust or remove their personal data.
Is Digital Maturity of Customers Affecting Companies?Researches all around the world have proved that 8 out of 10 customers make use of a computer, smartphone, tablet or in-store technology for various purposes. Because of which organizations find it difficult to keep up with modern customers. The high stakes on digitization today make digital transformation a strategic imperative for companies. Companies find it difficult to interact with customers across channels. Thus forcing customers to the conversation afresh every time they shift to another channel, as well as re-establishing identification. It is a wide-open area where a well-defined, structured approach is required to define the path for each organization.
How GDPR Helps Build Customer Loyalty?One of the key drivers of data compliance regulations in institutions is the erosion of trust. GDPR is thus about rebuilding trust with customers and it should not be viewed merely as a compliance exercise. It is the control of who has access to digital assets of specifically the customers. According to GDPR, the establishment of trusted customer relationships is only possible for dynamic authorization which includes risk management, security practices as well as privacy protection. This regulation is not just a secure means of customers identifying themselves, but also an enabler of a more transparent relationship. With GDPR implementation, customers are able to share details with companies and in exchange, this enables them to see which data is shared with which service provider maintains it and access as they wish. Thus this simultaneously resolves issues around trust and convenience. Ways through which customer loyalty can be gained:
- Compliant customer data capture
- Access to customers
- Access for customers to change their permissions
- A single customer view
- Personalization capability
- An identity management solution
Key takeaways from 'Winning with GDPR: How to Build Customer Loyalty'
- The consequences of poor privacy experiences lead to lost customers, diminished brand loyalty, increased support costs, and potentially negative PR.
- Digital transformation makes users recognize companies that do well due to the constant communication factor.
- GDPR represents an attractive opportunity to build brand loyalty by addressing the concerns of real users, by going above and beyond the specific requirements in the regulations.
- GDPR introduces data portability - the right for a customer to receive personal data concerning them, which they have previously provided.