Impact of GDPR so far: what happens next?

Since its start on May 25, 2018, GDPR has been a popular subject. Now that some months have gone by, it’s good to review the effects of GDPR so far and what is anticipated next.

There have been many updates in businesses’ ways of operating, with both good and bad results from GDPR. Numerous companies are now opting to secure their data using SaaS solutions such as Recordia, which lets you gather, document, secure, and store all communications, or eComFax, which enables you to send and safeguard faxes from various devices, without using traditional faxing and through a safe cloud network.

GDPR sanctions

So far we have seen few fines. First, the Austrian DPA fined a retailer 4,800 euros for illegal video surveillance. A German social media company has been fined €20,000 for a data breach, which resulted in the leak of 330,000 user emails and passwords. Fines imposed on a Portuguese hospital amount to €400,000 for two data breaches that compromised patient confidentiality. In the next 6 months it is very likely that the volume of fines will increase.

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Venture investments and advertising

GDPR has affected a number of business activities such as venture capital investments and online advertising. There was reportedly a 17.6% decline in the number of weekly venture capital deals. However, all this cannot be attributed to the GDPR. Despite this decline in investment, the equity capital received by software companies is higher than ever. We are still in the very early stages of the GDPR and it will take time for its effectiveness to consolidate and to know exactly what effects it will have and how.

As for online advertising, they have become more content-based and therefore more relevant, ensuring better user experience and customer satisfaction.

Interested party’s rights request form

In line with the GDPR, businesses need to give interested individuals certain basic details about the data and how their personal data is handled. This information should be brief, clear, easy to understand, and in a form that is simple to access, using straightforward language. These individuals can ask for a copy of the data being processed about them.

There are many good effects if you do this. Openness is essential. If a company does not protect its customers’ privacy properly, its digital change and overall functions may be in danger. Privacy builds trust and trust is strength. Without this belief, you are risking failure. By providing easily accessible information and highlighting the benefits of having it for users, you are more likely to gain their trust and keep their loyalty.

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Effects of the GDPR outside the EU

The effects of the GDPR have extended beyond the EU. GDPR has led many smaller companies in the US, etc., to completely stop their advertising campaigns or access to their website as they have not or cannot yet comply. This is bad for both businesses and users. Because of this, tech giants like Google and Facebook have increased their market share, the opposite of what the GDPR set out to do.

Benefits of the GDPR

While it’s easy to focus on the negatives, GDPR actually has many benefits for your business.

1. Improve data security

No company can afford to risk cybersecurity. You need to reevaluate and improve your overall cybersecurity strategy: establish complete control over your entire IT infrastructure, create healthier data protection workflows, and simplify security monitoring. These will reduce your attack surface, help you understand what’s happening in your network, and decrease the likelihood of having to pay a large fine.

2. Improve data management

A good first step is to review all the data you have: identify the type of data, where it comes from, and what is done with it. This will help minimize what you collect and organize and store more efficiently. Then you can tweak and refine your data strategy. Delete data that doesn’t benefit your business or customer experience. Why take unnecessary risks and responsibilities by keeping sensitive data that you don’t need and that brings no benefit.

3. Increase your marketing ROI

By creating content-based ads, you target those who are currently searching for your product or service. Better data and advertising content will create better user experiences. By focusing on customers who want to engage with your marketing, you will see an increase in open rates, click-through rates, etc.

4. Increase loyalty and trust

GDPR is an opportunity to engage with customers and build loyalty. Consumers are becoming increasingly suspicious of how their data is handled; By adhering to regulations and being transparent about what data to collect and how it will benefit your customers, you are more likely to earn and maintain their trust and loyalty. Forrester’s 2019 Customer Experience Index showed that the connection between consumers and brands is declining by 3^rd consecutive year. Companies must act to change this trend.

5. Become a driving force in changing company culture

GDPR is an opportunity for a company to excel. It is the first step towards a new business culture. This may become the norm, just as being environmentally and animal friendly has been for the last 10-15 years. By complying with the GDPR, you can create a company culture and mindset that respects and is responsible for personal data. Data and analytics leaders should increase awareness of how business outcomes can improve by changing how their organization handles personal data.

What should your company do?

It is essential that companies take the initiative and be proactive in their approach to GDPR. It is very likely that there will be an increase in fines as time goes by. So, if you haven’t yet taken steps to bring your business into compliance, now is the time to do so. This is particularly important for SMEs, as fines will harm them much more than companies, not only in terms of monetary value but also of image and reputation. Bad publicity for small businesses or startups can be harmful.

Our Recordia and eComFax software solutions are GDPR compliant and can help you collect, protect and securely store data collected via landline, mobile, email, SMS or fax and are easy to retrieve and analyse.