Australia is currently reviewing its data privacy laws. As with Europe in 2018, there is recognition that laws originally drafted in a semi-pre-digital age need refreshing to be relevant in our current world of Facebook, WhatsApp, re-targeting and artificial intelligence. Proposed recommendations1 include:
There are some distinct similarities with Europe’s General Data Protection Regulations (GDPR). For example, the proposals require that “consents are given freely and that they are specific, unambiguous, and informed.”
Understandably, Australian marketers are a little nervous about the implications for their customer databases. However, they should take heart from Europe, where 18 months post-GDPR many marketing programs are showing big performance uplifts. This is a direct outcome of improved data quality, a better setting of expectations, and broader choice—generating increased trust, and delivering more revenue.
Here’s a selection of examples:
While much of the marketing world’s GDPR focus was on legal bases (primarily consent versus legitimate interest), at least three of the key principles (i.e. the ones that can result in €20M fines!) are all about data quality:
These principles all feel like they should be data best practices, followed as a matter of course—not because there is a legal obligation to do so. Unfortunately, the reality is very different. Validity EVP Wayne Parslow blogged “the average business estimates that 22 percent of its contact data is inaccurate. Almost a quarter! The estimate is even higher among marketing professionals like you, who believe 30 percent of their customer records are erroneous. Alarm bells!”
In the UK, Royal Mail Data Services (RDMS) calculated the cost of poor data at 5.9 percent of a typical company’s annual revenue. In Australia there are just under 2M small businesses, earning average revenue of $368K per year at an average profit margin of 11.7 percent4. If the RDMS figures hold true down under, then each small business is losing around $20K each year as a result of bad data – almost half of their total profits! For medium/large businesses (annual turnover $2M+) these figures will be much larger . . .
European data controllers have been obliged to get their data quality houses in order, and now they are reaping the benefits. Their Australian counterparts don’t need to wait–there is a strong positive business case for starting right now! And if you’re not quite sure where to start, the great news is Validity has a powerful set of CRM software solutions like DemandTools, PeopleImport, and DupeBlocker to help CRM admins and users keep customer data clean, standardized, and free of duplicates.
Want to start boosting those missing profit margins today? Contact us now to find out how!