Could GDPR Have Averted Facebook's Data Debacle?
Welcome to my monthly column series, Around the World, where we will explore what’s new in marketing and sales from a global perspective. This column will focus primarily on technology innovations and the impact they are making in helping companies achieve their growth objectives.
Note: I intentionally include both marketing and sales innovations. The reason is most effective organizations employ collaborative marketing and sales teams who work together to achieve shared goals. Companies can no longer afford to separate these two symbiotic areas of the business. Clearly, we have a long way to go to make this a universal reality, but we are moving in that direction.
The ROI of GDPR
Starting next month, I serve up short Q&A sessions with innovative people who are making an impact in the marketing and sales industry. This will create an interesting flow of perspectives and experiences from around the world. The purpose of this column is to be a source of useful and inspiring information for you, my readers. But I also want this to be an interactive forum where you share your reactions and experiences so we are learning from each other.
Let’s get started with a look at GDPR, which will have global ramifications in how marketers and salespeople handle personal data. This new European regulation that begins on May 25 is causing many to complain about increased regulations and the cost it is going to have for businesses. I view GDPR differently. These new regulations are actually exactly what we as individuals expect and demand from companies in how they treat our personal data they have extracted over time.
From my perspective, I like what GDPR offers. I want to share my data with companies to receive a better service, be rewarded for my loyalty and be treated ethically, knowing that my data is safe and secure. In fact, I’d like to go further and have ‘a right to be remembered!’ For instance, it’s so boring and time-consuming to have to complete the same forms for the same company you fly with each time, rent cars from or hotels you visit. As consumers we want these entities to retain the data we have provided about our preferences and use it in the future.
We all want to be treated like trusted members of the family. Imagine being greeted by the Italian restaurant owner who impresses your guests as he ushers you and your guests to your favorite table in a restaurant! You feel special. The evening gets off to a great start and sets the tone for a great customer experience. This is all because the owner took the time to get to know you and your preferences before you stepped inside his restaurant.
One of the main benefits of GDPR is the fact that there are huge powers (and corresponding fines of 4% of revenue in each country affected), which will make large companies sit up and take notice about this important issue. And it’s really the big companies who have handled our data in an appallingly way. Just in recent weeks, we’ve seen millions of records hacked or misused by Facebook/Cambridge Analytica, Uber and Under Armour; the latter at least reacting quickly to confirm their data breach, rather than the normal corporate procedure of trying to brush things under the carpet as VW did with the dieselgate scandal - with unbelievable corporate arrogance. Shame on VW.
GDPR's Potential Impact on Facebook Debacle
So if GDPR had been in place, for instance, could it have affected the recent Facebook crisis?