Understanding the Impact of GDPR on Sales Practices

Understanding the Impact of GDPR on Sales Practices

Entering a New Era: The Amazing Influence of GDPR on Sales Techniques

In the labyrinth of contemporary businesses, it is imperative to comprehend the nuances of evolving laws and regulations. One such prominent regulation influencing businesses worldwide is the General Data Protection Regulation (GDPR). And when it comes to sales practices, the implications are massive. Organisations have reinvented their modus operandi in dealing with personal data to accord with GDPR requirements. This blog seeks to unravel the deep-rooted impact of GDPR on sales practices and how it is reshaping the business landscape.

Understanding the GDPR

Before diving deep into the subject, a basic understanding of GDPR is essential. Implemented by the European Union in May 2018, the GDPR is a regulation designed to safeguard European citizens’ personal data. It details the principles of data management and rights of individuals, placing responsibility on the shoulders of businesses to ensure that individuals’ data is not exploited. The GDPR was created in the wake of growing concerns over data breaches and misuse of personal information for deceptive sales practices.

The Impact on Communication

A fundamental impact of GDPR on sales practices revolves around communication. Sales cannot proceed without effective communication. Yet, the introduction of GDPR has significantly changed how sales teams can communicate with prospects, existing customers, partners, and so on.

Under the GDPR, each contact must provide explicit consent to receive marketing messages. This is a significant departure from the traditional approach where sales teams could freely send information and marketing materials to any contact in their list.

Data Acquisition Practices

Another core area where GDPR has made an emphatic impact is on data acquisition practices. The law mandates that explicit consent from individuals is a prerequisite for data collection. Therefore, the days of buying email lists or scraping contacts from the internet are long gone. Today, data acquisition for sales purposes requires a transparent process that is compliant with GDPR laws.

The Consent Issue

Arguably the most profound effect of GDPR on sales practices has been the need for ‘active consent.’ Pre-GDPR sales techniques often involved assumed or implied consent. But the GDPR stipulates that consent cannot be assumed or gained through silence, inactivity, or pre-ticked boxes.

Sales teams now need to seek proactive consent from prospects. Not only should the person be aware of what they’re consenting to, but the business should be able to demonstrate valid consent has been given.

Data Portability and Right to be Forgotten

The GDPR has also fortified the rights of individuals in relation to their personal data. It introduces the right to data portability and the right to be forgotten.

The right to data portability allows individuals to request their data and use it for their purposes across different services. On the other hand, the right to be forgotten allows them to ask for their personal data to be deleted. Approval isn’t guaranteed in all circumstances; however, businesses need to be prepared for such requests.

Wrap Up

While these changes may seem daunting at first, they also present an opportunity for businesses to build more trustworthy relationships with their customers. Compliance with GDPR demonstrates your respect for customer data and can be a vital tool in winning their loyalty and trust.

Despite being implemented by the European Union, the far-reaching effects of the GDPR have changed global practices surrounding data handling and privacy. We are no longer in the realm of indiscriminate data scraping, cold emails, or data hoarding. The age of the GDPR has ushered in the era of transparent and explicit sales practices, something that’s not just law-abiding but also a stepping stone towards ethical conduct in the business world.