Important Things To Know About GDPR And It’s Affect?
No matter whether you are a B2B or a B2C peer, you are meant to comply with the new rules and regulations that come along with GDPR. The change is necessary, important and inevitable in the market where businesses are drastically growing at a faster rate, from offline to online web. The way data is stored, accessed and processed today is too different to compare from how it was handled 20 years ago.
The GDPR (General Data Protection Regulation) will soon come into force, and it clearly will be a threat for businesses who do not comply with rules in the European Union (EU) Region. GDPR deals with Data and Data which is the very heart of B2B and B2C businesses. The best thing you as a marketers can do right now is to sit back, understand GDPR and the truth about its impact on your business. The law applies to everyone who deals with data of citizens based in EU, regardless of whether your company is within or outside of EU.
What is GDPR?
GDPR stands for General Data Protection Regulation. It is a law that requires businesses and organization to protect data, maintain privacy, and security of EU citizens. It is proposed by European Commission who will harmoniously strengthen and unify data protection for individuals.
Evolution of GDPR:
1995: It started with Directive 95/46/EC, the European Data Protection Directive act was adopted for the protection of individual’s personal data.
22/06/2011: European Data Protection Supervisor (EDPS) publishes an opinion on European Commission’s Communication to update the data with new rules.
25/01/2012: European Commission proposes a reform to strengthen online privacy rights in EU.
07/03/2012: EDPS adapts an opinion on commission’s data protection reform package.
23/03/2012: Working Party adopts an Opinion on the data protection reform proposal.
12/03/2014: EP demonstrates strong support for adapting GDPR
15/12/2015: EP, Council, and EC reaches an agreement on the GDPR
27/04/2016: GDPR enters into force and awards two year grace period to allow businesses to deal with and adapt to the changes.
25/05/2018: The day when GDPR will be in effect from.
Data today is growing faster than ever, and it’s vital for companies to adapt to the new changes. Businesses who fail to meet GDPR compliances before the deadline are subject to penalties and fines of either EUR 20 Million or 4% of their global turnover, whichever is higher.
How Does GDPR Affect B2B and B2C Peers?
The impact of GDPR will affect both B2B and B2C peers. However, the implications could be quite different for both B2B and B2C peers. It will remain slightly less significant to B2B marketers when compared to B2C marketers, because of the way the target platforms vary. According to Digital Marketing Association (DMA), the disparity between B2C and B2B subjects are in the connection with email and text marketing to consumers and employees of corporate organizations.
Research shows that marketers from both disciplines are aware of the data privacy. However, B2B marketers are more prepared but less aware, while B2C are gearing up towards getting more prepared.
Six Legal Laws of GDPR:
Clear Consent: Consent is an important concept in GDPR, personal data can only be collected and processed when individuals readily give their data for a clear purpose.
Legitimate Interest: Personal data can only be processed on legitimate grounds pursued by the controller or the third party except when interests are overridden based on personal interests or fundamental rights.
Vital Interests of the Data Subject: It is mandatory to protect the data based on the vital interests and have opt-out options.
Contractual Necessity: It is necessary to take prior consent from the party before entering into the contract to which the data is subjected to.
Legal Obligation: Personal data can be processed for compliance with a legal obligation.
Public Interest: Processing is necessary only if the tasks are carried out in public interest or is in the official authority vested in the controller.
Benefits of GDPR for B2B and B2C Companies:
Better and smarter data: Preparing for the better and smarter data gives an opportunity for businesses to understand their consumers better. The current GDPR compliant data is accurate, structured and compliant helping them to build compelling and personalized offers. This approach provides an opt-out option that in turn helps save a lot upon time and resources spent, by just targeting the right target market. As a result, more resources can be allocated for engaging with customers who are likely to respond.
Customer retention and loyalty: Better data is always something that equals to a better customer relationship. In any business, gaining the trust is very important. This not just helps in retaining the existing customer, but also helps you to attract new customers. Compliance with GDPR is an aspect that ensures better parting of data with a better understanding as to who wants to engage and who doesn’t. This means no time is wasted on chasing.
Personal Data will be better valued: As a citizen of EU, you have access to grant and take back your consent whenever you would like it to be removed from the database. The authority of even correcting the data is allowed, if there are any errors.
So Who Does the GDPR Apply to?
It applies to controllers and processors who deal with data of citizens based in EU.
A controller is a person who collects the personal data and then processes it, while a processor is someone who takes it from the controller, and uses it for his business purpose. No matter who you are, it is the responsibility of the both to use the data lawfully.
The GDPR will still apply to companies outside and inside of EU if they have to deal with EU citizens data.
Message for Marketers:
“With greater responsibility comes great opportunities, as a marketer, it is essential to see the positives of GDPR. It’s a known fact that the change always comes for the betterment, and it’s wise to take an edge over the change.” With this in mind, unlock and future-proof data-driven marketing practices to keep things simple. Be prepared and have a plan in place for when GDPR kicks off in May 2018.