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Exploring the GDPR Effect on Entrepreneurs

Written by SPI Group

GDPR has been the buzz that has kept all entrepreneurs engaged ever since there was a decision to bring in the new law. Every entrepreneur has been talking about GDPR, following the updates and preparing their business to accommodate the new laws. Yes, everyone is trying to be GDPR compliant but there is more to the GDPR buzz than just changing rules. It is natural that the concerns over privacy usage will only increase. There is not going to be any change in that. Let us look at some of the factors that GDPR is going to transform. But before we proceed here is a look at what GDPR law means.

What is GDPR?

GDPR is an EU law that came into effect on the 25th of May. This law gives EU citizens control over their data. They have the right to choose or give consent to data that is being collected about them. This gives them the power to track their data and keep them from being deleted.

How does this law apply to entrepreneurs outside EU?

Well if you are dealing with a citizen or a company who is located in EU then naturally they would want the dealings to be GDPR compliant. It does not matter if you yourself are situated outside the EU. If some citizen from the EU land in your website, it needs to be compliant to the GDPR. This naturally makes it a rule all over the world to adhere to the GDPR new law.

The challenge that entrepreneurs are now facing is that they cannot personalise a customer’s experience. Personalizing customer experience was one thing that was believed to have driven sales and made a company reach success in ways that was earlier not heard of, but with the GDPR in place, it is little less flexible to collect data of a person. You cannot simply choose to send an email and sit back thinking that your campaign or advertisement would catch the attention of your customer. Personalization is an important thing that has helped entrepreneurs all over to make that connect that helped them get through the marketing process easily with success waiting at the end.

This has been something that has disturbed entrepreneurs ever since the possibility of a GDPR coming in effect started. But if you look at it differently, you will see that there are many good things to the law.

What GDPR is not?

The confusion about GDPR arose because it makes one feel like one cannot collect any data from a person. The fact is that the GDPR law does not prohibit anyone to collect data from customers.  It gives individuals more power over what they wish to share and does not.

Why is this a Good News?

The digital business world works in a way where people are willing to share their data for a smooth transaction. Would you not want to give your information to a shop that you regularly interact with? Or would you rather update your details and preferences every time ( and which is always) you make a transaction. Sharing information works for the benefit of not only the business but also for the customer. So GDPR or no GDPR, people would still want to share information with a business that they like making a transaction with.

Companies who collect data in an open and honest way have nothing to lose. It is only those companies that trick people into sharing information that might need to think about themselves.

Here are some things that you as an entrepreneur can do to make your customers or those unsure visitors share information with you:

  • Use Customer Data to Deliver Real Value
  • Deliver enough value with each interaction

When your customers see that you deliver value with each interaction they will be more than eager to share information with your business. No one would refuse to provide information if they have clear benefits and services in exchange.

To give an example, Amazon Prime Loyalty program is one thing that you entrepreneurs can look up to. They are doing a great job by building trust while collecting a lot of data from their customers. Apart from the free shipping Amazon gives its clients so much value that customers literally want them to know them well all the time. People know that Amazon is collecting information about them but they are willing to share because of the benefits that they are receiving from the company.

It is important that you as an entrepreneur take the GDPR law as something that has benefits for you and carry on with being GDPR compliant. You have nothing to lose if you work the honest way. However, it is important that you work through the nice way to reach a point where people want to share information with your business. The idea is to provide value to your customers.

It is important that entrepreneurs create their business in a way that helps them to create a business that people will want to have an association with and feel comfortable with sharing their information because they know that the company will bring value for the information that they provide. It is important that entrepreneurs understand how GDPR is going to affect their businesses and work in a way to make this new law into something that would help them to become the ones who thrive. There is always a different way of looking at things and when one looks at the GDPR law and the large businesses who have been doing business successfully with the right laws, one can see that the trust of their customers make them stay calm.  If you are confused how to go about the GDPR thing then it is important that you look at these businesses and how their entrepreneurs are leading the way. There is no business trouble so big that cannot be worked around. Keep your mind open and give your business the passion to thrive in the business world.

 

 

 

About the author

SPI Group

An integrated platform created to serve entrepreneurs and service providers. SPI engages with over 100,000 Entrepreneurs & Senior decision makers through a unique combination of cutting edge business magazines, high profile B2B summits and conferences, strategic alliances with Govt, business associations and government bodies. SPI also leverages the power of digital marketing and social media.

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