Happy birthday to the General Data Protection Regulation (GDPR). It’s been around now for three years and counting, but in that short time, privacy regulation has only become more and more important.
No matter where you look, privacy regulation is everywhere. GDPR may have been drafted and passed in the European Union, but it managed to inspire similar laws in U.S. states. In fact, more than 60 jurisdictions around the globe have now enacted or proposed privacy and data protection laws.
On top of that, it’s spreading. Consumers and marketers everywhere must adhere to these regulations, and according to Gartner, 65 percent of the world’s population will have its personal information covered under modern privacy regulations by 2023.
Throw in the pandemic, which shifted nearly every part of life to a digital-first setting, and naturally, customers are more aware than ever before of how their data is being used. Surprisingly, this is actually a rich opportunity for businesses to develop a more solid relationship with them.
A New Reality Between Consumers and Businesses
Once upon a time, customers had no choice but to blindly rely on companies to guard their privacy. Thanks to GDPR and its related regulations, customers are now more aware of their data and can define how, when, and where it may be used. Against this backdrop of empowerment, companies understand that consumer trust in them is essential.
Some industries like healthcare and financial services, despite their use of personal and sensitive data, have managed to develop high consumer trust, according to a recent McKinsey and Company survey. Other sectors, like consumer-packaged-goods or media and entertainment companies are perceived as less trustworthy.
Meaningful Regulation Compliance
Compliance is everything. Sure, there are penalties in place for companies that don’t comply with data privacy laws. A big spike in GDPR fines in recent months shows that the authorities mean business, and eventually the fines may serve as real deterrence.
But in fact, the fines themselves are not the actual motivation for a company’s compliance. According to a NICE survey, customer experience and security are now the main drivers for investment in data privacy compliance practices, and 94 percent of respondents agreed that privacy is a key customer experience differentiator.
Companies understand that brand loyalty and reputation depend upon cultivating and nurturing consumer trust. A safe, informed, trusting relationship built on a culture of compliance is the bedrock of the ultimate customer experience. And that needs to be proactive – not reactive.
The Utopian Customer Experience
Picture a world in which your company’s technology and practices seamlessly align with “privacy by design” tailored to each customer. Solutions that merely respond to a problem are a thing of the past – now everything is “privacy forward.” All your systems are set up from the start to protect consumer data the instant it’s provided, and to swiftly implement requests like data extraction and deletion when needed.
Imagine easy access to self-service options, right there in a bold button on your web site that allows a customer to choose the “right to be forgotten.” Or how about using innovations in AI-based solutions to look at a customer’s journey, understand their privacy preferences, and then adapt accordingly?
Of course, a perfect world of privacy is not yet here. But companies today can still leverage the innovative data privacy solutions that are available and streamline into one all-encompassing solution that ensures compliance issues are managed with alignment and focus.
Data privacy is no longer about the customer’s leap of faith. And it’s no longer even just about companies providing a response to customer concerns. Rather, it’s about getting in front of the problem, beating it to the punch, proactively offering simple and deep solutions, that demonstrate their commitment to the customer, to a trusting relationship, and an empowered experience. That is what builds brand trust and loyalty.
Come learn about the NICE Compliance Center, an intelligent, agile technology-based solution that empower companies to make compliance inherent in the fabric of their business.