Is your data management practice transparent to buyers? Do your practices abide by laws like General Data Protection Regulations (GDPR) and California Consumer Privacy Acts (CCPA)?
Today, managing a buyer’s data has become a critical trust point for B2B brands. Some firms are transparent and open about their data management practices, while others may be less so.
To address this shift towards data transparency, governments across the globe have introduced regulations like GDPR and CCPA. Businesses are racing to meet these regulations and restore buyer trust in brands’ data practices.
GDPR and CCPA Enforce New Levels of Data Transparency
GDPR and CCPA, while distinct in terms of regions they cover, share the goal of encouraging data transparency and security. For instance, GDPR requires brands get explicit consent from people before collecting or processing their personally identifiable information. Failure to comply results in penalties.
In 2019, French data regulator CNIL fined Google for violating the EU’s data protection rules. The company had to pay 50 million euros (£44m) for lack of transparency and valid consent for ad personalization. CCPA also stresses transparency of the sale of private buyer data. Here, businesses must provide people with the right to opt-out of sale of their personal information to third parties.
In short, be it GDPR or CCPA, the underlying rule is to offer people the explicit ability to choose:
- What they sign up for
- Which brands to engage with
- How they intend to engage
There’s no better way to re-establish trust than following these regulations. And with trust comes long-term business relationships and revenue growth. As John C. Havens pointed out at the True Influence Summit, “Regulations open new opportunities for businesses.”
Data Regulations Require Brands to Inform and Empower Buyers
Buyer data privacy is a top-tier concern, but many companies are struggling to earn buyers’ trust. In a McKinsey report, no industry achieved a trust rating of 50 percent for data protection.
GDPR in Europe and CCPA in the U.S, introduced as a result of the threat to customer data privacy, help rectify this issue. Articles 13 and 14 of GDPR and sections 1798.100 – 1798.199.100 of CCPA emphasize the importance of data protection and offer ways to stay transparent.
As per these principles, any information relating to the processing of personal data must be easily accessible and communicated in plain language. Brands can use visualization if required.
Adhere to these laws by tweaking your business practices in terms of communication styles, preferences and solutions. For example:
- Educate buyers on the use of their sensitive personal data.
- Give them control over data exchange.
- Offer an appropriate return on their data.
In addition, post your data privacy policies on your website as True Influence did. It alleviates doubt in the buyer’s mind.
Data Transparency Leads to Brand Trust
In the wake of GDPR and CCPA, explicit rules require that B2B brands meet buyers’ needs. By following these standards, you can achieve the highest level of data transparency and restore brand trust.
Watch the on-demand Spring Summit on “Accelerating Revenue Through AI” to find out more about regulatory compliance and its benefits from notable speakers, including John C. Havens, Kerry Cunningham, and others.