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Best practice Europe GDPR Global Legal & Compliance Strategy and Management UK

SWOT up on data privacy: ‘think positive, it’s a GDPR opportunity not a threat’

Forecasters say that, come May 25 next year, 75% of EU customer data will be unusable because it does not comply with the new data protection laws. But research by W8 Data shows a more positive vibe – the ‘GDPR opportunity’ will force companies to clean their data thoroughly, in line with the new regulations. It will affect amounts of data held by companies, but quality over quantity will forge better relationships with customers.

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Best practice Data Protection Europe GDPR Legal & Compliance Strategy and Management UK

GDPR and your data: check you comply . . . then check again

Laws surrounding data privacy and customer consent are changing in just over a year – get it wrong, and you will pay hefty fines. Time to test your permission statements and check your strategy is flawless.

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Europe In the News Legal & Compliance Strategy and Management UK

Charities face huge fines for ignoring opt-out service

charity fundraisingCharities that ignore the Fundraising Preference Service would still be in breach of the law – and liable for fines of up to £500,000 – despite the fact that it is not a statutory requirement, the UK Information Commissioner’s Office has confirmed.

Speaking at a recent conference in London, the ICO senior policy officer Richard Marbrow said the FPS would have legal status because the regulator would view consumer sign-ups as a withdrawal of consent to receive marketing communications.

Marbrow said some professionals had suggested charities would be able to ignore the service because it was non-statutory, but the ICO could pursue them for breaching the consent requirements of the Data Protection Act. DPA breaches carry a maximum fine of £500,000.

Charities opt-out service: FPS criticised

Although former Information Commissioner Christopher Graham initially criticised the FPS for being confusing, the regulator now wants the service to apply to all marketing communications, bringing it under the Privacy & Electronic Communications Regulations. Breaches of PECR carry a maximum fine of £250,000.

One study estimated that up to 30 million people could sign up to the FPS.

The move came as Graham’s successor Elizabeth Denham (pictured) took up the role from July 18. Ms Denham said: “I am delighted to have taken up this position and am excited about the challenges ahead. I look forward to working with staff and stakeholders to promote openness by public bodies and data privacy for individuals.”Information Commissioner UK

Denham, who will serve a five-year term as Information Commissioner, has held senior positions in privacy regulation in Canada over the last 12 years. Since 2010, she has been the Commissioner at the Office of the Information & Privacy Commissioner for British Columbia, Canada.

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Europe In the News Legal & Compliance Strategy and Management UK

Data protection: gulf widens between customer expectation and reality

A series of white papers are being released, addressing the potential impact of the upcoming European General Data Protection Regulation (GDPR) on business-critical processes.

The first white paper focuses on Permission – how consumers give consent to a company to use their personal information, how aware individuals are of the process and how important permission-to-market is for companies.

The research, conducted by DataIQ in association with DST (global provider of specialised technology, strategic advisory and operations outsourcing to the financial and healthcare industries), reveals a disconnect between the way that consumers want businesses to treat their data and how businesses currently approach their customers’ data.Privacy

Among the paper’s key data protection findings:

– 78% of companies say it is vitally important to process data for legitimate business interests

– 28% of consumers believe they should always be asked for permission to use their data

– 21% of consumers believe that data consent should only be valid for six months

– 21% of consumers believe their data should be deleted straight away

– Only 15% of businesses track permission company-wide

– 41% of consumers don’t mind providing their data if they understand how it will be used

According to Ruaraidh Thomas (pictured), managing director at DST Applied Analytics, with so few companies currently tracking permission as a key performance indicator, there is a lot of work to be done in order for businesses to be ready for the GDPR.Discussing GDPR

“With such a high degree of connectivity and internet activity, consumers are increasingly faced with requests for their personal information and their permission to make use of it,” says Thomas. “It’s clear from this research that companies need to work to understand their customers’ expectations when it comes to sharing data in order to build long lasting relationships, especially given the upcoming GDPR.”

The GDPR is an important update to laws covering the capture, control and consent to use of personal information. While built on the core principles already established by the Data Protection Directive in 1998, GDPR also introduces new rights for consumers and new obligations for businesses.

According to DataIQ/DST research, a quarter of consumers said incentives like better price or money-off can work as a driver for the data-value exchange. The research also found that a large percentage of people just need to understand why their data is needed.

“In preparation for the GDPR, businesses must take note of how consumers wish to be engaged, especially since so many businesses rely on data as part of their business model,” says Thomas. “The fact that some consumers are happy to provide their data if they understand what it is to be used for, demonstrates just part of the opportunity available for businesses that respond appropriately.”

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Data Management Europe Global Insight Strategy and Management UK

Consumer choice and the opt-in: the power of consent

David Cole discusses research findings into consumer choice and the opt-in process.

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Benchmark your permission statement to improve opt-in rates

The EU has committed to new legislation which will dramatically change the way European companies can collect, store and use data.

Its principal effect will be to stop firms contacting their customers unless they have been specifically given permission. The tacit agreement implied by people not ticking the opt-out box will no longer be enough.

In the not too distant future, companies throughout Europe will have to persuade customers to tick the opt-in box if they want to continue marketing to them.

And even before the EU law became an issue, consumers were becoming increasingly cautious about revealing information about themselves. They are concerned about who will have access to their data, how it will be used and how it will be stored and protected.

This has prompted them to look at permission statements more closely before deciding whether to allow further marketing contact.

UK DMA executive director Chris Combemale is quoted as saying: “Widespread concerns about rapidly shifting consumer attitudes to data privacy should be ringing alarm bells in the board room of every business involved with one-to-one communications.”

But there is a positive side to all this, according to Scott Logie, former UK DMA chairman and head of research, data and analysis for Bank of Scotland, who said: “Improving opt-in permission rates is fundamentally a commercial issue. At Bank of Scotland, we computed that the marginal value of increasing the consumer opt-in rate by just one per cent was worth a huge amount of incremental value. This created the basis for an ongoing scheme to improve opt-ins.”

What marketers can do

One way marketers can counteract the effects of the legislation (which some industry pundits predict could decimate some European databases) is to adopt a serious and urgent attitude to collecting permissions and make sure the permission statement is worded in a way which will maximise opt-ins.

Until now, brands have had no way of measuring whether the wording of their permission statements is generating the maximum response possible.

So, to take the guesswork out of the process, online research company fast.MAP and Opt-4 strategic consultant on data protection legislation compliance and permission maximisation, have joined forces to build a new industry standard The Data Permission Benchmarkdate permission benchmark logo

How it works

By comparing current or proposed permission-statement wording with actual results from thousands of consumers, the Data Permissions Benchmark allows marketers to quickly measure potential opt-in rates.

They will be able to understand what works and what doesn’t; compare the score against the benchmark; and gain insights into how and why consumers share their data.

The Benchmark allows brands to understand how their proposed wording performs against the 14 key attributes which affect sharing: Clear, Trustworthy, Honest, Flexible, Appealing, Inviting, Reassured, Gives confidence, Rewarding, control, Welcoming, Values me, Gives me choice, My data will be safe.

They may then compare the results with statements which perform highly in areas where their statement is underperforming and thus identify beneficial changes and refine and re-test statements.

The benchmarking process involves loading a current or proposed statement onto a fast.MAP questionnaire and sending it to a live panel of 1,000 consumers. This allows the statement to be live tested and improvements implemented within days.

Director of Opt-4, Rosemary Smith, said: “Live testing of multiple-data protection statements creates an untidy legacy of consumer promises that brands are obliged to honour, benchmarked research is the sensible alternative.”

Isn’t what constitutes an effective opt-in statement obvious?

Permission scripts which score well on clarity, control and trust are likely to achieve a high score.

To check your own success in judging the likely success of different statements, try this test.

What percentage of opt-ins do you think this statement achieved?

“By giving us your details and clicking the submit button, you are agreeing that we may use your personal data in accordance with our privacy policy including for marketing purposes”

Click here to find out if you came close.

And this one:

You know that we have some great deals in-store and online. To be the first to hear about these offers – as well as to receive vouchers which are only sent by email – please provide your email address below.

You’ll start receiving offers straight away and there will be something special in the first email that you won’t want
to miss!”

Email address…………………………………..

Click here for result.

And this:

“We’d like to keep you informed by email about our future offers and new product launches. Please tick this box to let us know that you are happy for us to do this   

(Don’t forget, you can change your contact preferences at any time by logging into your account or by using the unsubscribe links which you will find on all our emails)”

Click here for result.

The next Benchmark step is to analyse exactly what makes some statements more successful and correct the weaknesses in the one being tested. Visit the website for more information.

Contact: rosemary.smith@opt-4.co.uk  0796 147 2210 or david.cole@fastmap.com  0777 568 4293.