What is the GDPR?
In the month of May, 2016, the passage of the GDPR caused a mini seismic shift across the globe. The legal framework became effective across the EU on the 25th of May 2018, and requires all organizations that deal with the data of the European Union citizens to comply with the regulation. Failure to key into this regulation would badly affect the organization’s bottom line, brand image, and customer relationships.
The GDPR (General Data Protection Regulation)sets out the principles for data management and the rights of the individual. It seeks to create a harmonized data protection law and give control of personal data back to the data subjects. It is also set to impose hefty financial penalties on defaulting organizations.
How can the GDPR help to rebuild customer trust?
Customer trust has been severely damaged in the past as a result of the poor handling of personal data. The GDPR has now forced this issue of information mismanagement into the limelight. Strong bridges of trust between customers and businesses can now be rebuilt through GDPR data protection. Businesses have been given the opportunity to show that they are capable of handling customer data with the respect it deserves.
Below are the 3 reasons why the GDPR can effectively help to rebuild customer trust.
- Data-related processes of institutions would have to be either updated or changed to a very great extent. Companies that deal with issues like complex technological frameworks, a lack of support, and a limited understanding of the regulations would have to buckle up if they intend to survive. Customers would now also be paying more attention to what is happening with their personal data. The GDPR promises a transparent future where personal information is properly managed and treated like a valuable asset rather than as a property that could be handled as though it is expendable. Firms would no longer be allowed to get lazy. They would have to treat customer data with respect.
- Customer data has, until now, been misused andpersonal information has been allowed to enter the hands of numerous third parties, exposing the customers to various spam, where they receive numerous unsolicited emails. If your business uses the cloud, get to know the various cloud security risks that threaten personal data. With the GDPR in place, personal data would be used for personalized targeting as it supposed to be. Businesses would now collect required information on customers and ensure that they place proper emphasis on the way it is allowed to flow through the organization.
- The threat of serious financial penalties, along with the accompanying public shaming that would come from regulatory authorities such as the UK’s information Commissioner’s Office, and the risk of losing existing and potential customers, would motivate organizations to create a culture where customer data is the responsibility of every employee. In doing so, a more efficient and careful handling and use of customer data would be ensured, thus improving customer trust and brand loyalty.