QUANTUM GDPR POINT OF VIEW ARTICLE WILL STRICT NEW EU DATA LAWS CREATE ISSUES OR OPPORTUNITIES FOR TODAY S MARKETERS? OPT-IN?
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1 WILL STRICT NEW EU DATA LAWS CREATE ISSUES OR OPPORTUNITIES FOR TODAY S MARKETERS? OPT-IN? Quantum Marketing Group Point of View Paper Spring 2016
2 1 Issues or opportunities? 2 What is the B2B challenge? 3 A big opportunity? 4 Time to take advantage?
3 ISSUES OR OPPORTUNITIES? The contentious issue of the UK s decision to stay in or out of the European Union is a red-hot topic for businesses and citizens alike. But this is not the only opt-in, opt-out issue that is raging through the continent right now. Major EU reform of data protection laws is set to have huge ramifications for the use and storage of company databases across the continent. These far-reaching data protection regulations come off the back of four years of legal wrangling by the European Commission, in a bid to make Europe fit for the digital age. The resulting General Data Protection Regulation (GDPR) is designed to give individuals including those representing a business better protection of their personal data and to tightly regulate companies use of this precious resource. Due to come into force in less than two years (by spring 2018) these EU data regulations present a host of challenges for businesses. Despite this, there are big marketing opportunities for companies willing to prepare effectively for the changing world of European data laws. THE GDPR IN NUMBERS Countries covered of turnover in fines (or 20 million) % < years to go until it takes effect For more information on the EU Data Proposals, please visit:
4 WHAT IS THE B2B CHALLENGE? First things first, the regulation lays out a strict compliance regime with tough financial penalties of up to 4% of global turnover for not meeting the new regulations. Marketers will no longer be able to rely on databases as they stand. They will need to be absolutely sure they are sending out campaign materials to individuals who explicitly agree to be contacted. A further issue for companies is the added complexity and cost of complying with the revised privacy regulations. Under the new laws individuals will have a right to be forgotten, forcing companies to delete their data. This means businesses will have to embark on a programme of confirming that all individuals are happy to have them continue to use their personal data. Given the pressure on marketing departments to deliver, this is a task that could tie up valuable internal resources and impact the success of existing campaigns. Enterprises that fail to clean their databases of those who have not opted in, could face stiff penalties. Since most marketing databases have been built up over a number of years and the data stored is likely to be out-of-date or inaccurate, this is no mean feat. Companies will have to ask permission to add customers to mailing lists and to send them marketing communications. This will remove the existing implied consent, and force businesses to explain in an easily understandable way what individuals data will be used for. The new opt-in consent also applies to the use of data by third parties (or brokers, agency list providers and event managers). Companies are now staring at a potentially huge liability from their databases as the new laws impose fines not only for lack of compliance but also for data breaches. What is more, the regulator is likely to flex its muscles early on against offenders. Businesses will need to be prepared so they can avoid damage to their reputation and the bottom line in the future. FIRMS THAT FALL FOUL OF EU REGULATIONS FACE SEVERE PENALTIES OF UP TO 4% OF GLOBAL TURNOVER OR 20 MILLION WHICHEVER IS HIGHER.
5 ACCORDING TO THE EUROPEAN COMMISSION, MORE THAN 90% OF EUROPEANS SAY THEY WANT THE SAME DATA PROTECTION RIGHTS ACROSS THE EU.
6 A BIG OPPORTUNITY? Clearly this is a significant step change in the way companies handle their customers data, catapulting databases from the back office into the boardroom. It represents a ticking time bomb for marketers and is something that is best dealt with now to prevent any significant issues in the future. And while the introduction of the GDPR could be seen as a worrying problem, it also presents a timely opportunity for marketing departments to gain a much clearer understanding of their customer base. After all, it creates a welcome chance to engage with those customers who expressly agree to be contacted gold dust for marketing departments. Those that see the new rules as an opportunity to make contact with customers will also gain first mover advantage. As soon as the regulations come into force, other companies will be scrambling to get their databases fit for compliance. Meanwhile, the early adopters will be one step ahead, creating campaigns that really speak to an engaged group of customers. At any given time, it is best practice for marketers to contact customers to find out their preferences. It simply makes good business sense to do so. So acting now will be seen as good businesses staying in touch. Leaving it until the last minute risks messages being lost in the marketing noise created by everyone else and unwelcome solicitation. Those marketers who construct compelling reasons for customers or potential customers to engage now will steal a march on those who are slow to react to the regulations. They will also uncover valuable new information in the process. They will acquire a much richer understanding of the goods and services these customers require. All of which will serve to boost sales and increase market share. TODAY S AGREEMENT IS A MAJOR STEP TOWARDS A DIGITAL SINGLE MARKET. IT WILL REMOVE BARRIERS AND UNLOCK OPPORTUNITIES. Andrus Ansip, EU vice-president for the Digital Single Market
7 TIME TO TAKE ADVANTAGE? Put simply, there are three compelling reasons to clean your database and acquire opt-in consent: It has to be done so why not get ahead of the competition? Marketing departments will have By cleaning your database now you can benefit from understanding what to work much harder if your customers want they are competing with right now, not what everyone else closer to they wanted several the deadline. years ago. Your future marketing campaigns will thank you. By stripping out all data that is no longer valid, you can target your efforts more effectively. Simple and effective action could diffuse the potentially devastating effects of having a redundant database. By looking outside your enterprise for support you can also eliminate the need to tie up valuable resources in cleaning data in-house. Especially if you are too busy with campaigns that affect the bottom line. That is where Quantum a specialist in marketing services can assist, providing companies with a straightforward way to tackle the opt-in requirements of the new EU regulation. Its bespoke data cleaning packages take away the time, hassle and resource required to clean entire databases inhouse. Quantum s multi-lingual contact centre team and integrated marketing services reduce the effort in contacting individuals and determining their preferences. Companies can also add personalisation to this process with Quantum s opt-in templates. This service will help provide businesses with a platform to refresh databases fit for imminent EU laws. For those savvy businesses and marketing departments that act now, the potential issues with the GDPR could easily become real business opportunities.
8 FOR MORE INFORMATION ABOUT QUANTUM S OPT-IN SERVICES, PLEASE VISIT OR ... MARKETING@QM-G.COM
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