83% of European CEOs and marketing executives say they can do effective marketing while adhering to GDPR standards.
You’ve launched new social campaigns, optimized your website and established thought leadership opportunities. While these are crucial to running a successful business today, there is a critical fourth element that can’t be overlooked: Data privacy.
Six years ago, the European Union set global standards for data privacy compliance with the General Data Protection Regulation (GDPR). Soon after, similar policies were drawn up across industries and borders, resulting in a widespread implementation of data privacy regulations.
But our digital behaviors undergo constant change, begging the question: how much of an impact has the GDPR had on compliance for businesses, consumers and emerging technologies within the EU since 2018?
Piwik PRO, a privacy-compliant analytics platform, surveyed 1,800 CEOs and marketing executives from 27 countries across Europe and found regional differences in GDPR compliance play a key role in business operations. The report also provides valuable insights into the diversity of data privacy practices for companies globally.
An overwhelming majority (83%) of respondents believe companies can conduct effective marketing practices while adhering to privacy laws, although only 66% of those surveyed believe GDPR is easy to understand. This gap reveals an opportunity for martech vendors to ensure organizations receive the guidance necessary to understand compliance.
Another major finding: Organizations adhering to GDPR guidelines received positive responses that contributed to enhanced consumer trust and regulatory compliance. For businesses looking to succeed in an increasingly data-driven future, understanding the results of this survey is vital to overcoming modern marketing complexities.
GDPR’s impact on business and privacy
The report clearly shows that organizations better understand data privacy compliance and are positioned to collect and leverage data to optimize business operations securely.
Collecting customer data is the first step to enhancing marketing strategies; what companies do with this information is critical to their performance and public perception. When it comes to data activation, 79% of respondents feel it is a crucial component for sales and marketing effectiveness. Over half of respondents (51%) cite security and compliance as a major challenge to data activation, with data inaccuracies ranking second at 43%.
As digitization pushes more businesses and consumers online, privacy is a natural part of the exchange for enhanced performance and better services. Organizations that actively build privacy compliance into their marketing efforts demonstrate greater transparency while elevating customer experiences and industry standards.
Analyzing results from the top countries
Putting the survey results into action demonstrates an ability to balance privacy requirements with effective marketing practices, revealing strengths and weaknesses in GDPR compliance. While fewer respondents reported an explicitly positive impact of GDPR on their business, most didn’t see it as a hindrance.
This is likely due to the effects of GDPR and compliance on building customer trust. For respondents, customer trust was the primary motivator behind compliance (70%). Maintaining company values (52%) and legal obligations (40%) followed. Only 16% of respondents mentioned the risk of fines as a driving force towards compliance.
Five countries led in response rates: Denmark, France, Germany, Sweden and the Netherlands. The key findings from these countries demonstrate the role of company-specific approaches to compliance in placing EU-based vendors ahead of big tech alternatives. The major findings for these five countries are as follows:
- In Denmark, 68% of companies reported that building trust with consumers was a key driver for GDPR compliance and compliance efforts yielded a 32.7% positive impact on business operations.
- For Dutch companies, 69% favor EU technology alternatives over big tech products. The Netherlands is leading the way in adopting marketing technologies compliant with GDPR.
- French businesses prioritized customer data protection, with 57% using consent as their primary legal basis for processing data.
- In Germany, building consumer trust drove companies toward GDPR compliance, with 76% of organizations finding GDPR requirements easy to implement.
- Swedish companies cited GDPR as an important component for enhancing operational transparency, with 70.3% choosing European marketing technology alternatives to ensure compliance.
The future of marketing: Balancing privacy, trust and performance
When looking at the results from these five countries — and the report in general — successful marketing initiatives were clearly driven by personalization and placing importance on customer-led perceptions of compliance. This is evident in the business value provided by EU-based companies outpacing their performance and favorability over big tech competitors.
Further, organizations capable of leveraging tools and methods that align with privacy requirements and present users’ personalized choices show the value of first-party data. First-party data reveals significant information about customer behaviors and preferences. When responsibly activated, first-party data can be used to create targeted marketing campaigns, strengthen customer relationships and optimize personalized marketing efforts.
Since its inception, the GDPR has been a guiding light for setting global best practices in data privacy. Despite differences in domestic compliance, U.S. companies can leverage GDPR-informed strategies to meet regulatory expectations, enhance customer relationships and experiences, remain competitive and achieve their business goals.
By focusing on these areas and studying the survey results, companies are better primed to navigate the challenges posed by evolving privacy regulations and emerging technologies. This approach enables them to maintain effective marketing strategies while building stronger and more trustworthy customer relationships.
For more details, access the full report here (no registration required).
The post GDPR is a help, not a hindrance, to marketing appeared first on MarTech.
About the author
Shama Hyder is the Founder & CEO of Zen Media, an international keynote speaker, and a bestselling author. Fast Company calls her a “millennial master of the universe” and a “zen master of marketing.” She’s a Forbes and Inc. 30 under 30 alum, and LinkedIn has called her a Top Voice in Marketing four years in a row. Shama was recognized as a top 100 entrepreneur under the age of 30 by The White House and a top 100 entrepreneur under the age of 35 by the United Nations. Zen Media is a PR and marketing agency serving tech-driven b2b companies around the globe. Shama has been a media correspondent for Fox Business, MSNBC, Bloomberg, CNBC and she’s one of the world’s leading experts on marketing and PR in the digital age.
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