With the advancement of technology, the way of doing business has undergone several changes. Currently, the digital marketing strategies seek to develop campaigns in a targeted way, so the more detail you get from the target audience, the better.
However, due to the numerous cases of data leakage and improper use of this information without the consent of the customer, the new Data Protection Law (LGPD) was sanctioned in August 2018, which will come into force in February 2020.
This law referred to the European legislation, the General Data Protection (GDPR), which came into force in the same year. Accordingly, LGPD aims to establish stricter and more secure rules regarding the collection, storage, processing and sharing of customer’s personal data.
For this reason, we have prepared this article to explain to you how the new Data Protection Law and customer experience are related and what the impacts of LGPD are. Check it out!
What is the purpose of the new data protection law?
The new Data Protection Law in the area of compliance aims to increase the security of the collection, storage and sharing of customer information – that is, its main objective is to ensure the privacy and protection of personal data. Therefore, the sector responsible for registration or digital operation needs to have an UX (User eXperience) in order to provide a good user experience.
What are the main requirements of the new law?
LGPD establishes clear and specific rules on how and which customer data may be collected. In this case, the law requires the company to have the explicit consent of the person responsible for the information in order to collect whatever is necessary.
Another important requirement concerns the restriction of information. That is, the controller – the person responsible for collecting, storing and sharing data – must present the reason why the information is being collected.
This means that the controller must be limited to obtaining the information that is really needed for their purpose. Based on this principle, there is now a restriction on the practice of acquiring additional data for future use.
How does LGPD affect the company’s financial sector?
Both financial institutions and financial service companies often have daily access to a large number of personal data that is, for the most part, confidential.
For this reason, it is very important for these organizations to comply as soon as possible, as in case of noncompliance, the institution will be fined, compromising up to 2% of its annual revenues. Given this, the financial sector should pay attention to some terms of the LGPD, such as:
- customer consent: Companies will be required to request customer authorization to make use of personal data in cases where information must be shared with third parties. In addition, it is now mandatory to state the reason why they are collecting this information;
- right to data deletion: All citizens will have the right to request the removal of their personal data from the information database;
- consequences of a violation: LGPD determines that in cases of data violation, companies must refer to the reviewing authorities to take appropriate action;
- supplier management: Suppliers typically have access to customer personal data. Therefore, the LGPD states that they will not be able to disassociate from data access obligations;
- pseudonymization: Data must be pseudonymised with artificial identifiers in the live production environment to ensure greater security.
How to meet LGPD without harming the customer experience?
There is no doubt that legislation combined with the area of compliance of the company wants to increase consumer security. That is why it is wrong to think that the new law has been sanctioned to undermine the digital experience. On the contrary, its main objective is to encourage the rational use of technology and thus to require more conscious planning.
As technology expanded, new sales methods emerged that brought a fresh look to the customer experience. Thus, digital marketing strategies aim to better understand the profile of its consumer in order to offer products or services that will solve their pain, desires and needs.
In this sense, in order to meet the expectations of your digital customers, it is necessary to know them thoroughly. However, in general, there are some characteristics that are part of the current consumer profile and therefore cannot be ignored, such as:
- means of communication;
- strives for sincerity and transparency;
- connected at all times;
- more demanding;
- values simplicity and practicality;
- looks for flexibility;
- more aware;
- values the experience.
Given this, the safest way to apply the law correctly without having to give up meeting the expectations of your target audience is by optimizing the customer experience through process automation.
That is, to automate processes efficiently, it will be necessary to define clear rules that provide more transparency in the way data are collected, used and stored, thus allowing greater control of the use of information.
As a result, the new rules tend to be more effective when it comes to promoting a better customer experience, as they aim to encourage companies to be more precise in their campaigns by offering something that really has to do with the interests of the target audience.
To make this process easier, it is worth considering the help of integrated management software to streamline operational flow, providing more productivity, scalability and efficiency and promoting more agility in operations, ensuring customer satisfaction.
Based on this information, it is clear how important the new Data Protection Law is for the privatization of the customer’s personal data. Also, you can see how LGPD is directly linked to the customer experience. Therefore, it is essential that companies be aware of these factors in order not to risk legal penalties.
Did you like the article and want to know more? Then learn about 4 practices to increase data security in your company.