Since the implementation of GDPR, there has been a significant shift in how companies manage user data. Rather than relying on outdated practices, businesses are now required to closely monitor their websites to ensure compliance with GDPR regulations. However, this is actually seen as a positive development. According to a recent study among 1000 IT managers in Europe, three-quarters of them believe that GDPR has had a favorable impact on consumer trust. Furthermore, 73% claim that it has positively affected their data security.
Your customers have become increasingly ethically aware of how you act and what you say. Ethics play a massive part in the customer’s journey. In fact, the survey from McKinsey management consultancy conducted in 2020, surveyed 1000 consumers in North America. This survey concluded that 87% of them would not do business with a company if there were any concerns about its security practices. Additionally, 45% of the surveyed consumers stated that they would never trust the brand again. In this blog, we will explore how being compliant can provide a competitive advantage over your competitors.
A competitive advantage by being GDPR compliant
Enhanced customer Trust and Loyalty
The relationship and trust you have with your consumers is one of the main advantages of being GDPR compliant. You can build closer ties with your clients by demonstrating to them your dedication to protecting their data. Compliance with GDPR ensures transparency in your data processing and gives your clients control over their information. Customers are more likely to trust your company and stick with your service if you handle their personal data with responsibility and ethics.
Strengthened Reputation and Brand Image
A reliable brand is built on the basis of privacy compliance. Your dedication to ethical standards is demonstrated by your emphasis on data protection and privacy. This dedication improves your standing with customers, business associates, and other stakeholders. Positive brand perception that is based on privacy compliance can help your company stand out from the crowd and draw in clients who value data protection.
Improved data security measures
Being GDPR compliant implies having strong data security procedures. You may prevent security breaches, cyberattacks, and unauthorized access to personal data by putting strong security policies in place. These precautions guarantee the protection of business information in addition to safeguarding your customers.
Competitive differentiation
The market feels like a Turkish bazaar full of colourful noisy landing pages that look the same and say the same. GDPR compliance can be a unique selling proposition for your business. Customers are becoming more aware of their data rights and actively look for businesses that prioritize data protection. By differation yourself as GDPR compliant, you can stand out from competitors and attract customers who value privacy and security. This competitive advantage can contribute to increased market share and business growth.
Data management and efficiency
GDPR compliance requires an understanding of data management processes. You are required to map out data flows, assess risks, implement controls. These actions leads to increased operational efficiency and streamlined data management practices. By optimizing data processing, you can reduce redundancies, eliminate data silos, and improve efficiency resulting in cost saving and improved productivity.
Achieving the Competitive Advantage
To gain a competitive advantage through privacy compliance, businesses should not only focus on meeting the necessary legal requirements but also consider the customer’s perspective. Article 25 of GDPR emphasizes the concept of privacy by design and default, highlighting the importance of privacy even before designing a new system. By integrating privacy considerations into the lifecycle of a system, companies demonstrate their commitment to preventive measures, transparency, and user-centricity.
Empowering Users and Enhancing Control
To gain a more competitive advantage through privacy compliance, businesses should not only focus on meeting the necessary privacy and legal requirements but also consider the perspective of your customers. Article 25 of GDPR emphasizes the concept of privacy by default and default, highlighting the importance of privacy even before designing a new webpage. By automating this process and maintaining a clear overview of all domains, businesses can achieve transparency and enhance consumer trust.
Your Privacy compliant Partner
To simplify the process of achieving privacy compliance and maintaining transparency, Nixon Digital offers a comprehensive platform that provides a clear overview of all domains and their compliance status with GDPR and more. With Nixon Digital, you can automate your privacy compliance processes, ensuring that you meet regulatory requirements and build trust with your customers.
In conclusion…
Privacy compliance is no longer just a legal obligation; it has become a strategic advantage you’re your businesses. By prioritizing privacy, you can build consumer trust, protect valuable data, and differentiate themselves from competitors. Embracing privacy by design and default, along with transparency and automation, businesses can achieve privacy compliance and gain a competitive edge in today’s data-driven world.