When life gives you lemons, you can cry or make lemonade. It might be the same with the General Data Protection Regulation (GDPR), the European Union data-use regime that applies to companies doing business in the EU; it comes into force Friday.
In a previous edition, we discussed how U.S. regulators were examining a GDPR-like structure to regulate data-gorging brands such as Facebook, Google and Amazon ( PRN, April 24) in the wake of Cambridge Analytica.
You might recall one of the studies we quoted in that edition found most companies were taking a lax approach to GDPR. A new study says the same thing (see charts A, B and D), but there’s an important kicker.
While GDPR is a necessary regulatory step for brands in the EU and something PR pros need to at least be cognizant of, it could also be a benefit for brands. The report, from French-based consultants Capgemini, emphasizes companies actually will be missing important opportunities by failing to see GDPR as little more than a regulation.
In short, GDPR is an exercise in increasing trust between brands and consumers, the report argues. Brands that comply with GDPR and do a good job of communicating it externally and internally will reap benefits such as enhanced reputation. Equally important, consumers likely will be more willing to spend additional sums with such companies, the study argues. In addition, employees at these companies are likely to be more enthusiastic brand advocates, with the attendant benefits to recruiting (see charts C and E).
Firms in compliance, it says, already are seeing benefits: 39% of consumers have purchased more products and spent more with these firms. Those who’ve increased spending have spent as much as 24% more.
Unfortunately, just 28% of firms surveyed consider GDPR an opportunity as opposed to a compliance mandate only.
Capgemini surveyed 6,000 adult consumers in seven countries and 1,000 executives in eight countries between March and April.