Did you know that about 80% of B2B companies have a hard time following the General Data Protection Regulation (GDPR) and other data privacy rules?
It is consequential for B2B sales and marketing to heed these standards because they help protect customer information and also prevent very high penalties.
Compliance is more than just following the legal standards. It helps build trust with customers by implementing strong data compliance to keep the data safe and secure. Companies show that they care about shielding the customer information. This approach ultimately leads to better client relationships and creates a fierce brand reputation.
This guide is created to help marketing and compliance teams work together by integrating the art of GDPR practices into your sales and marketing processes for each individual.
By the time you finish reading this blog, you will have a clear and extensive workflow that will simplify the regime of GDPR compliance and also transform it from a formidable and overwhelming task into a manageable and structured journey.
Does GDPR Apply to B2B?
The GDPR intends to protect privacy and standardize data protection rules across the European Union (EU) and the European Economic Area (EEA). The GDPR applies to all organizations that handle the personal data of individuals in these regions, regardless of their location.
On the other hand, GDPR and CCPA are intended to protect the privacy and data rights, but they also have their differences.
The GDPR law requires companies to have a valid reason before they can use personal data from individuals residing in the EU and other specified countries. In contrast, the CCPA law does not have this requirement. The GDPR applies to all companies that comply with its criteria for having a legitimate purpose, while the CCPA is applicable only to companies that generate more than $25 million in annual revenue.
Key aspects of the GDPR include:
- Businesses need to have clear consent before collecting personal data.
- Individuals have the right to access their data.
- People can request the transfer of their data to another service.
- Individuals can ask for their personal information to be deleted.
It outlines a framework for data protection and security law that was mandated by the European Union (EU). This landmark legislation was developed to address the growing need for precise regulations that convoy data security and privacy.
The GDPR regulation applies to the collection and use of personal data, for example, via websites, mobile applications and other properties. It applies to companies doing business with other companies and consumers. This means that if you identify an individual, the GDPR will be applicable to you.
Companies must provide clear notifications about data collection and usage to securely store and manage data in order to maintain records of the processing activities and conduct data protection impact assessments (DPIAs).
GDPR influences your B2B marketing practices by fostering trust, protecting individual rights and ensuring your marketing strategies are effective and legally sound.
The significance of GDPR on your B2B sales activities includes:
- Personal Data Definition
- Lawful Basis For Processing
- Transparency And Consent
Applicability to Personal Data
Personal data is any piece of information that can identify an individual, either directly or indirectly. This includes details such as names, identification numbers, locations, and other specific characteristics that represent various aspects of a person’s identity. These can encompass physical traits, health information, business details, and cultural background.
This law is devised to safeguard personal data and enhance privacy and security measures. The legislation seeks to create a more secure environment for personal data and wants to make sure that individualsâ rights are respected and protected.
The key principles for B2B compliance are:
- Lawful Basis for Processing
- Transparency
- Right To Opt-Out
- Data Minimization
- Data Subject Rights
No Exemptions for Business Contacts
The GDPR impacts B2B sales and marketing that involve personal data. This means that the companies must have a valid legal basis to process the personal data of their business contacts, just as they would do for their consumers.
Lawful Bases for Processing B2B Data
Under the UK General Data Protection Regulation (GDPR), personal data has to be processed under an authentic lawful basis. These conditions are outlined in Article 6 of the GDPR. It covers six different lawful grounds for processing personal data:
- Consent
- Contractual Obligations
- Legal Obligation
- Vital Interests
- Public Interests
- Legitimate Interests
Legitimate Interest
This lawful basis for data processing stands out as the most adaptable option available to organizations. It is applicable when an organization identifies a clear and legitimate interest in processing personal data such as enhancing customer experiences, conducting market research or safeguarding against potential security threats.
- This can serve as a ground when none of the other legal bases can adequately justify the processing.
- Public authorities can only use it for purposes outside their official tasks.
- Data collection for legitimate purposes must align with the data minimization principles.
Consent
For a valid consent, individuals receive clear and complete information about the personal data being collected. It is essential to provide a comprehensive explanation of data protection measures to individuals. Authorities make sure that individuals clearly understand how their data will be secured through specific methods, such as encryption and secure storage protocols. Furthermore, they inform them about who will have access to their data, detailing the roles of various personnel and the purpose of their access.
In cases where data is going to be shared, it is imperative that individuals are informed about the specific parties with whom their information will be shared, including any external organizations or affiliates. Additionally, they should be provided with clear reasons for this sharing, such as for research purposes, compliance with legal obligations, or improvement of services.
Other Legal Bases
- Contractual Obligation- It refers to the processing of the data that is required under a contract or in the performance of a contract.
- Legal Obligation- This refers to the processing of an individualâs personal data to comply with laws or statutory It does not include contractual obligations.
- Vital Interests- It is to process an individualâs personal information in case of an emergency medical situation or to protect their life. This applies to both the essential protection of the data subject and other individuals.
- Public Interests- Under the basis of public interests, data is processed in order to protect the welfare of the general public as governed by the official authorities.
Operational Impacts on B2B Sales and Marketing
Operational impacts incorporate agility and cost savings through a simplified process. The adaptation of digital channels and the ability to overcome challenges like long sales cycles, complex decision-making and the necessity of building trust.
Operational impacts on B2B lead generation also include the rising use of AI and automation to streamline processes. There is a growing emphasis on personalized communication based on data and improved collaboration between sales and marketing.
Transparency & Notice
Transparent marketing is successful because it can build trust, strengthen loyalty and decrease costs for your company. When companies share their processes, partners feel more secure when they know what to expect.
In sales, clear pricing, accurate product information and transparent performance data lead to more informed buyers and faster decision-making.
Impact on Marketing Includes:
- Data Privacy and Trust
- Clear Value Proposition
- Demonstratable Performance
- Regulatory Compliance
- Stronger Customer Relationships
Impact on Sales Includes:
- Informed Buyers
- Increased Efficiency
- Higher Conversion Rates
- Reduced Churn
- Enhanced Trust
Data Minimization & Accuracy
Data Minimization stands at the forefront of modern marketing strategy, balancing consumer privacy with business efficiency. The principle is straightforward yet influential: collect and retain only the data necessary to accomplish specific business objectives.
Maintaining unnecessary data requires additional server capacity, backup systems and IT resources. These costs compound over time as data volume grows exponentially.
Impact of Data Minimization:
- Reduced Costs
- Stronger Security
- Enhanced Customer Trust
- Improved Data Quality
Impact of Data Accuracy:
- Enhanced Decision-Making
- Improved Operational Efficiency
- Boosted Lead Generation
- Shorter Sales Cycles
- Better Customer Insights & Personalization
- Increased ROI
- Regulatory Compliance
Security & Accountability
Security & Accountability are very crucial factors in todayâs digital era for protecting sensitive data and maintaining compliance with regulations. It establishes clear ownership of security responsibilities and makes sure that the actions of individuals can be traced and verified.
Some of the key aspects of security and accountability are:
- Assigning Responsibility
- Tracability of Actions
- Compliance With Regulations
- Encouraging A Security-First Culture
- Incident Response
Implementing secure data storage involves extensive security measures like encryption, firewalls and access controls to protect data from unauthorized access.
PECR and Other Regulations
Data privacy and consumer protection laws are slightly draconian in the U.S. when compared to the U.K. The U.K.âs PECR mandates consent for marketing via electronic means like email and text, whereas the U.S. lacks a single and comprehensive federal law.
| Feature | PECR (UK) | U.S |
| Primary Law | Privacy and Electronic Communications Regulations (PECR) | Fragmented, Sector-Specific Laws and State Regulations (COPPA, CCPA) |
| Data Protection Philosophy | Comprehensive Data Protection That Often Requires Consent | Sector-Specific and Less Restrictive on Marketing |
| Marketing Consent | Generally, Requires Consent for Unsolicited Electronic Marketing | No General Federal Requirement for Consent for All Electronic Marketing |
| Cookies | Regulated With Consent and Often Required | No Comprehensive Federal Regulation Mandating Consent for All Cookies |
Costs & Organizational Change
Organizational change represents growth opportunities with associated costs that primarily involve communication, training and integration of the new systems. In B2B companies, there is a strong emphasis on managing customer acquisition costs (CAC) while optimizing for longer sales cycles.
They also prioritize the alignment between sales and marketing teams and leverage digital tools and artificial intelligence to enhance efficiency and the overall customer experience.
Best Practices for B2B Compliance
To enhance respect for personal data and to ensure robust protection, companies adopt several constructive practices such as conducting thorough data audits, limiting access to data, investing in new employee training, implementing strong security measures, creating effective breach response plans, making privacy policies transparent and embracing a privacy by design philosophy.
Conduct a Legitimate Interests Assessment
A LIA (Legitimate Interests Assessment) is a type of light-touch risk assessment based on the specific context and circumstances of the processing. There is no one-size-fits-all approach to a LIA. Sometimes your LIA might be precise but in other situations, it may be much more detailed, or identify the need for DPIA.
Use Clear Consent Mechanisms
To use a clear consent mechanism, you need to provide information in plain and understandable language by using a clear affirmative action like a specific button click or signature. Additionally, make sure that the consent is specific to the intended purposes. This will allow easy withdrawals and maintain detailed records of how and when the consent was given.
Implement Data Hygiene & Retention Policies
To implement data hygiene and retention policies, you need to:
- Define Scope and Objectives
- Identify Stakeholders and Assign Responsibilities
- Conduct a Comprehensive Data Inventory and Audit
- Classify Data
- Establish Data Quality Standards
- Develop Clear Retention Guidelines and Schedules
You can automate the implementation process and define processes for secure archiving, detention and monitoring. And finally, you can communicate the policies company-wide and regularly review and update them to make sure that the ongoing compliance is effective.
Leverage Compliance as a Competitive Edge
You need to transform your perspective of compliance by seeing it as an opportunity rather than a burden. You need to embrace compliance as a strategic asset so that you can build trust with stakeholders, enhance your brandâs reputation and streamline operations through automation and integrated technology.
Monitoring, Enforcement & Consequences
Regulatory frameworks provide a structured foundation for conducting and monitoring activities that evaluate compliance with established rules and plans. This multifaceted approach not only seeks to deter violations but also aims to foster a culture of accountability and encourage the achievement of desired outcomes in a transparent and equitable manner.
Data Breach Notification
A data breach can have severe consequences that include damaged reputation, financial losses and even legal repercussions. Companies must regularly evaluate their security measures. They should also update their policies and provide training to employees. This will help them stay informed about data privacy risks and best practices in data privacy.
Fines & Reputational Risk
Fines are financial penalties imposed on individuals or organizations that violate laws or regulations. These penalties vary in amount depending on the severity of the violation.
Reputational risk refers to the harm that can arise from various factors, such as negative media coverage, customer complaints, or unethical practices. When a company’s reputation is damaged, it can lead to loss of consumer trust and confidence, which may result in decreased sales, loss of customers, and a decline in overall business performance.
Conclusion
Youâve now got the lowdown on GDPR compliance in B2B sales operations. Remember, safeguarding data isnât just a legal obligation; it is essential to building trust with your clients.
B2B GDPR compliance is non-negotiable for organizations that process any personal data in their business marketing activities. The distinction between corporate and individual subscribers, proper selection of lawful basis, technical security measures, and comprehensive documentation form the foundation of an effective compliance program.
FAQ
Does GDPR Apply to B2B Marketing?
GDPR applies to B2B marketing by dialing up the use of personal data, treating work email addresses and sole traders as individuals and requiring a legal basis for processing data. They ust also attain consent for most marketing activities, provide clear opt-out methods, ensure data security and honor requests to access, correct, or delete personal data.
Can You Use Legitimate Interest for B2B Cold Emails?
It requires symmetry between business goals and the individual’s right to privacy. Your email’s content must be relevant to the recipient’s business, you must be able to justify your need to contact them, and you must provide a way to opt out of future communications.
What Personal Data Is Covered in B2B GDPR?
B2B GDPR includes names, email addresses, phone numbers, IP addresses, job titles and location data. Any processing of this data must have a lawful basis, such as consent or contractual necessity and must be carried out in appropriate security measures.
How Is Consent Different from Legitimate Interest in B2B GDPR?
While consent puts control in the hands of the user, legitimate interest allows businesses to process data when they have a justifiable reason, but only if it passes GDPRâs strict three-part test.
Can You Use Company Emails without Consent?
You cannot legally send commercial or marketing emails as it is a violation of data protection laws and regulations.
How Long Can I Store B2B Contact Data Under GDPR?
There is no fixed retention period to store B2B contact data. You can keep it as long as it is genuinely needed for a specific and lawful purpose.
