On May 25th 2018, the new European privacy regulation called The General Data Protection Regulation (GDPR) will come into effect.
The impact of GDPR will affect every company that handles customer information because the internet has profoundly changed the way we communicate both personally and professionally. We pay bills, we send emails, we buy goods and services and share documents all by sharing our personal details online.
Up until now, customers have been told that sharing information will help to improve their customer experience, but recently, organisations have been thrown into the spotlight for misusing and selling data for commercial or even political gain. Because of this, consumers are left feeling confused about their data privacy and may be more reluctant to share their preferences as a result.
This may be a timely opportunity for companies to re-engage with your consumers, explain what data you need, why you need it, whom you share it with and what customer service benefits will result from its use.
If, as a company, you exceed the bare minimum requirements set by the privacy regulations, you will be able to win more customers by offering greater reassurances about their personal data. This trust can drive customer loyalty because customers will be happy to grant access to a brand that they know is respecting their privacy and meeting their customer experience needs. Ultimately GDPR can engender trust, build brand loyalty and make the customer experience more personalised.
To gain a competitive advantage from GDPR, companies will need to have a clear vision and a wide understanding of their customers. It’s more insightful and valuable looking at consumer engagement and data needs across the entire customer journey, this is something we do at Echo-U for our clients. It can result in huge savings across the customer journey as well as enhancing the customer experience.
Going forward companies that embrace GDPR most successfully will create their own competitive advantage.