The General Data Protection Regulation(GDPR) is live from 25th May 2018. The scary thought of a €20 million fine or 4% of the company’s annual global turnover isn’t something that will just harm the smaller companies, the larger companies are shaking now too. In fact, some of them have been preparing for years!
Due to the amount of personal data that they store it is unsurprising that Lloyd’s Bank is one of the prepared ones. As soon as the directive was announced Lloyd’s dedicated significant resources to ensuring they would comply with the regulation as soon as it kicked in.
They faced the responsibility head on not only to ensure they were compliant but to also educate their customers on what these changes mean for them. Bravo!
Looking in from the outside there is a lot that the rest of us marketers can learn from what the team at Lloyds have done. Because of this, we have create 3 tips from Lloyds on what to note when it comes to the GDPR.
Tip 1: Relevant content marketing is here to stay
This GDPR overhaul has made the bank become more customer focused. They created a large scale piece of customer research to find out what their customer thought of Lloyds marketing and how it could be improved.
Their findings were simple. Customers want to have more practical communication from their bank and receive messages that they can convert to actions, such as advice on fraud, identity theft and password protection.
Not only does this market research help Lloyds to fall in line with GDPR, as they have confirmed with each customer exactly what they want from the bank’s marketing, it will also build greater trust with them.
This is a key point for GDPR.
GDPR has the potential to make us better marketers with more loyal customers.
It is no secret that content marketing builds loyalty. It has also been around for a while now. However, many companies have avoided it or pushed less resources towards it because it was a difficult sell to the top level bosses or simply because it takes a while to reap the benefits of it.
GDPR is the perfect time to introduce it into your marketing strategy. The directive is all about accountability and relevancy. Provided you have consent from your customers to contact them you have a better chance of them sticking around if they find what you have to say interesting. This is exactly what Lloyds have been doing. This strategy is working so well for them that it is soon to be rolled out across the Halifax and Bank of Scotland as well.
Tip 2: GDPR needs to be taken seriously
The result of their market research was simple. Businesses are still not ready for GDPR.
With the findings that 70% of businesses reporting back that they wouldn’t be certain how they would detect a breach, and only 37% saying they would be equipped to deal with one in the required 72 hour timescale this is a real problem.
These findings are reflected in London Chamber of Commerce & Industry reports that show 1 in 4 London businesses are unaware of the new GDPR regulation.
This is worrying.
All businesses will be affected by the GDPR.
Whether you hold customer data or whether it is simply your employee data you ARE going to be affected. This means that without awareness of the regulation and without an action plan, these businesses are leaving themselves vulnerable to be hit by the staggering fines if confronted by the regulator. This has the potential to close many businesses down.
Having been preparing for two years, Lloyds have demonstrated that there is no easy fix for this. It requires thought and a clear action plan. It will involve interaction with whoever your contacts may be.
Tip 3: Customer consent is more than respect - it is legal!
Your contacts lie at the very heart of GDPR. After all it is their information that you are dealing with. This means that consent is vital. In fact it is one of the key principles of the regulation.
Put simply, your contacts should at all times be in control of their own information and should never be tricked into consent i.e. pre-ticked boxes.
As a marketer, believe it or not, this works in our favour. By giving us consent to communicate with them our customers are really saying - “Hey - I am interested!”. This means that you are not wasting precious time nurturing a contact that really has no desire to make a purchase/any further purchases from you. You can concentrate on the people that have given you consent and look forward to hearing from you.
By the very nature of Lloyds conducting a CRM overhaul they were acknowledging the importance of their customer and shifting the focus right back to them. In the long run, not only will they escape the fines of GDPR but they will also see increased loyalty from a willing to communicate demographic. It’s Win:Win all round.
GDPR is the biggest shake up to hit the business world in a long time. It will affect businesses both big and small and so will require thorough investigation and strategies on compliance. The risk of not following this is being hit with the astronomical fine of €20m or 4% of annual revenue which for a lot of companies means closure.
The good news is that it is not all doom and gloom. The regulation is actually designed in the marketers favour as it will make us better marketers with a more focused and engaged target market.
If you are interested in any further information on GDPR for marketers please let me know via firstname.lastname@example.org.
Disclaimer: This guide is not legal advice for your company to use in complying with EU data privacy laws like the GDPR. Instead, it provides background information to help you better understand the GDPR. This information is not the same as legal advice, where an attorney applies the law to your specific circumstances, so we insist that you consult an attorney if you’d like advice on your interpretation of this information or its accuracy. In a nutshell, you may not rely on this as legal advice, or as a recommendation of any particular legal understanding.