By Jon Cano-Lopez, CEO at REaD Group
We are now only days away from the big day – the General Data Protection Regulation – widely considered to be the most drastic change to the data landscape of recent decades.
GDPR is, in many people’s opinion, long overdue. The previous legislation surrounding data protection, the Data Protection Act, was implemented in 1998, before many of today’s digital marketing channels existed – the marketing practices of today are almost unrecognisable to those of 20 years ago.
Like it or not, GDPR will force marketers to alter their practices (very much for the better) and will impact businesses in numerous ways – across every bit of personal data processing. One of the central reasons for its implementation is to give consumers back control of their data and promote transparency and honesty between marketers and their customers.
The data value exchange
Unquestionably, gaining permissioned data will become more challenging and this will directly impact on marketing communications. The real test for brands will be to convince consumers of the value exchange in providing their data. Consumers and brands have been benefiting from data sharing for years, to the point where people often take many of the benefits for granted, such as loyalty schemes and tailored offers.
By providing relevant and tailored communications, brands can demonstrate the value of data sharing and ensure that their customers are likely to welcome correspondence from them.
While many marketers, and indeed much of the media, have been concentrating on the issues around obtaining consent, it is important not to forget that Article 5 of the GDPR requires that data be kept up-to-date and accurate. Using first class data cleaning products, such as Data-as-a-Service (DaaS) solutions which can clean data in real time, will ensure that companies are complying with this aspect of the regulation (and take a significant amount of hassle out of the task).
Data is becoming an increasingly valuable asset, and this value should not be underappreciated. It costs five times as much to attract a new customer as it does to keep an existing one. Keeping data up-to-date in order to communicate better with your existing customers should therefore be a no-brainer.
Despite a desperate scramble by many companies to re-consent customers via email, it is important to remember that consent is NOT the only legal basis for processing data. There are six in total and they are all created equal. Marketers received some good news from the ICO earlier this year when it was announced that if you are using direct mail to market to consumers you can rely on ‘’legitimate interest’’:
“you won’t need consent for postal marketing… you can rely on legitimate interests for marketing activities if you can show how you use people’s data is proportionate, has a minimal privacy impact and an individual is unlikely to be surprised or object.’
However, an LIA (legitimate interest assessment, also known as a balancing test) should be conducted to determine whether ‘legitimate interests’ can be used as a form of lawful basis for the data you are contacting.
In light of this announcement, brands should explore the opportunities presented by direct mail and think about how to utilise the channel to secure maximum impact. Public perceptions around direct mail have changed over recent years after many experienced an endless deluge of largely irrelevant and unwanted email. A return to a golden age of DM should be welcome news to consumers and companies alike. Mail as a medium has been found to be far less intrusive, more tangible and trustworthy, as well as providing a greater scope for companies to be creative and encourage engagement.
The months ahead
The 25th May should not be thought of as a finish line, but the beginning of a journey. Achieving compliance is only the start – maintaining best practice and incorporating it into company culture will be the real test for companies. However, it is important to remember that the legislation will ultimately benefit both consumers and brands. There is no need to panic over the prospect of fewer names on the marketing database, as those who have chosen to share their data will be more receptive and open to communications; essentially more valuable to business. Forging these long-term and mutually beneficial relationships with customers who want to be contacted will pave the way for a successful future.