GDPR: A Year Later

"At Campaign Monitor, we are completely compliant with the GDPR. We understand the responsibility we have been given when managing the data of others, and we take it very seriously," Phair states emphatically. "Our hope is that other organizations will do the same, no matter where they are located."

Nash adds that the need for companies to provide transparency about the data they capture, as well as a mechanism for consumers to choose which information can be captured and how it can be used, "is a big change for marketers."

But, in this case, the change is good.

The GDPR, Nash says, "has created an opportunity for brands to deepen their trusted relationships with consumers. With an understanding of consumer preferences, organizations will be able to hyper-personalize their interactions with consumers.…By understanding consumer preferences for why, when, and how they want to be engaged, complying with GDPR will improve program goals and result in an increase in purchase frequency, average order dollar value, and customer lifetime value."

Phair has already seen momentum in that area. Since the GDPR took effect, the regulations have altered how marketers communicate with their email subscribers. In fact, he maintains that the GDPR "is saving email marketing, rather than harming it."

"When the GDPR was first implemented, organizations saw a decrease in email list sizes, but this cleaning of lists inevitability improved future communications and organizations' engagement metrics. It allowed marketers to better understand who their subscribers are and what they are looking to gain from their subscriptions through the use of preference centers," Phair says.

For companies that have come into compliance, the GDPR has resulted in finely tuned databases and distribution lists, and streamlining email communication has made outreach more impactful with higher-than-before engagement rates, according to Phair. "At Campaign Monitor, we saw our open rates increase by 28 percent, click-through rates increase by 6.5 percent, and bounce rates decrease by 0.5 percent," he reports.

And getting to that level can be less of an ordeal than many companies feared, according to Nash.

"If GDPR compliance is done right, brands will have the ability to create a master record of customer data all on one platform," he says.

That master record, Nash explains, could contain all of the customer's allowed permissions, revoked permissions, or any changed notification settings, as well as a unified customer profile that combines details about their behaviors, interests, preferences, purchases, and other information from any engagement system or data source.

"This always-updating record would then track all consent preferences and changes over the entire customer life cycle," he says. "With this capability, data privacy compliance is fully auditable, and the company has the ability to deliver hyper-personalization as well as privacy."

But it can't end there. "GDPR continues to require an investment of time and resources," Phair notes, "but it is a worthwhile investment.

"Does it ever stop? The short answer is no. Marketers have a duty to continually ensure the data they harness for email purposes remains relevant. Otherwise, the benefits seen from GDPR detoxes will be short-lived," he adds.

Marketers aren't the only ones who stand to gain, though. When all aspects of the GDPR are carried out fully, "brands are able to deepen relationships and profitably grow revenue, consumers are able to gain transparency and control over their data, and regulators are able to safeguard commerce and consumer rights," Nash says. 

Leonard Klie is the editor of CRM. He can be reached at lklie@infotoday.com.