Data Privacy: The Impact of GDPR on Customer Relationships

Poulami B |

30th August 2019

Looking for Data Privacy and Protection Services to safeguard your mission-critical business data? You have come to the right place.

The success achieved by technology leaders like Google, Apple, and Facebook has led to the belief that data is the new oil. Enterprises today have a vast amount of customer data at their disposal for monetizing by generating insights. The value data holds makes it susceptible to cyberattacks and makes enterprises liable for legal compensation while risking brand reputation. A string of data leaks in the recent past has raised consumer awareness and led businesses to seek data privacy and protection solutions to counter data risks. The EU has established GDPR (General Data Protection Rules) to safeguard customer data. The privacy regulation has changed the face of data privacy and management in business. Thanks to GDPR, businesses can no longer afford to treat customer data with impunity.

Also Read: Adopting ‘privacy by design’ for data security and privacy

Understanding Customer Rights as Defined by GDPR

Right to Give Consent

Pre-GDPR, companies could prove consent by bundling pre-checked consent “checkboxes” with a variety of sign-up forms. It is now outlawed by GDPR which now requires companies to obtain explicit consent from customers to send promotional content to them.

Right to Access Stored Information

Businesses now have to disclose the information they have gathered about customers if they so demand. Customers should also have the provision to alter or delete data if there are any inconsistencies or redundancies.

Right to Erasure

Customers have the right to ask for the removal of their records from a company’s database if they discontinue their patronage. However, companies can continue holding onto the data for legal purposes.

Right to be Notified

In the case of a data/server breach, the consumers have the right to know about the said breach. All concerned customers must be notified within 72 hours of the breach.

Right to Restrict

Customers have the right to stop the company from processing their data. Even though businesses can continue to store data in their server, they cannot use it for anything but identification.

Impact of GDPR Compliance on Business Practices

Most business leaders are still analyzing the true cost and impact of GDPR. However, there are some that are keen to focus on the positive impact of GDPR on traditional business practices. GDPR has not only increased customer trust and satisfaction, but it has also made it simpler for businesses to target their most profitable customers with their promotional material. That being said, businesses will still need massive amounts of investment in technical upgrading to support new data privacy regulations. Let’s look at a few examples of how GDPR has changed the way firms do business with their consumers:

Businesses need to make sure that they obtain “consent” for email marketing explicitly. The new provision has empowered consumers as they cannot be blackmailed or fooled into giving consent anymore.
According to Art.37 of GDPR, services that require “regular and systematic monitoring of data subjects on a large scale’ need to be monitored by a Data Protection Officer (DPO). This will lead to increased operating costs for companies all around the globe as they invest in Data Protection services. However, customers will feel much safer knowing their data is much safer than before.
Companies cannot store data irresponsibly. Pre-GDPR, companies used to store large amounts of information without much use for it. Now that extra data has become a burden. Companies need to trim that data and be careful about the amount and kind of data they prefer to store in their servers.
The additional costs imposed by GDPR on business has given an edge to large businesses. Small businesses, struggling to keep up with their large counterparts in a precarious financial landscape might lose customer trust. GDPR compliance is necessary to avoid heavy fines imposed by state authorities in the EU. Small Businesses are stuck in a catch-22.

Data Privacy and Protection Services to Sheild your Data

Data Privacy has make-or-break implications for businesses today. Any company not in compliance with GDPR is liable to face heavy fines. In some cases, upwards of 4% of annual global turnover or €20 million, whichever is greater. It also makes data more valuable than it was before. It is a precious commodity that needs protection from hackers who use sophisticated tools to target company servers. Businesses looking to create a fruitful and long-lasting relationship with their customers need to upgrade their data security and privacy infrastructure. We, at Oodles, provide consultancy services to make sure your business is GDPR compliant. Contact our experts to avail of data protection services and upgrade your privacy and data infrastructure today.