Yes, tighter data regulation is good for business
When you think about most of the media coverage you’ve seen about data protection regulations, do you feel confident and data ready? (Mi3)
There are many headlines about multimillion dollar fines you could face if you don’t protect your customer’s data. It’s true, the price to pay for non-compliance isn’t something any of us wish to face. However, if adhered to, your business will become more efficient, secure and competitive. And who wouldn’t want that?
- In May 2018, the General Data Protection Regulation (GDPR) went into effect in Europe.
- The California Consumer Privacy Act (CCPA) became effective on January 1st, 2020.
- In Australia, the ACCC Digital Platforms Inquiry (DPI) report was released in July 2019. It includes user privacy protection-related recommendations, further supported by the Government in December 2019, with likely regulations to be enforced in 2021.
Understanding what new data rules mean for your business, and how to use them to your advantage, is critical. Failure to adhere to the regulations will soon result in significant penalties. So, we need to ensure appropriate processes, controls and the right level of due diligence are in place. But the question is, in doing so, could it also result in strengthening your position in market?
What are the positive effects that many people leave out while scaremongering about stricter data regulations?
- It will improve your strategic focus. To be compliant, you will need to know exactly what sensitive information you hold on your customers. This means as you refine the data you collect and hold, you can be more organised and really start to step up your data strategy.
- It will increase your cut-through. One of the first things you need to do is implement an opt-in policy and have a customer’s consent to process their personal data. Then all those lost leads and unengaged customers will become a thing of the past. The result? A leaner group of highly relevant customers who want to hear from you.
- It can boost customer loyalty and trust. When asking your customers for their data consent, you will need to explain clearly how you intend to use their information. The honesty and transparency you show will encourage your customers to trust you.
Most marketers by now will be familiar with the new data privacy regulations’ most direct implications on consumer data collection, storage and security processing – as well as the growing consumer expectations around disclosure, consent, control and trackability. What it means to your T&Cs, CRM, website or app builds is straightforward.
However, the marketing ecosystem is increasingly complex with multiple layers of collaboration and shared ownerships. When it comes to enrichment, fusion, insights and activation, accountability and trackability can be more challenging.
So how can you ensure full governance and compliance in the media activation space?
Most local publishers now have data partnerships in place to access interest, transaction and location data sets to create highly targeted custom segments. The race is on to challenge the duopoly of Google and Facebook and reach critical mass via a scalable aggregated and unified customer view.
Global agency groups have also invested significantly in developing their own people-based precision marketing solutions, such as OMNI at Omnicom.
The key opportunity is to continue delivering a highly relevant and targeted brand experience, without having to default back to contextual targeting. However, your media and marketing activations can involve a broad range of agencies, data partners, publishers and tech suppliers. So, it’s hugely important that a robust diligence process is in place when evaluating third party data and technology providers.
It’s certainly not simple. Businesses need to partner with an agency that will help them understand and navigate the dynamic regulatory landscape locally and around the world. Doing so will lead to a stronger, more efficient, robust and trustworthy business model. With so many aspects to cover, it’s ideal that agencies develop several frameworks, training and workshop sessions to help their clients. Adopting such an approach to data compliance will give clients a significant advantage, putting them at the forefront of new data opportunities.