Now more than ever, customers have become wary of their personal data, and how much information they wish to share or withhold. With the exponential increase in non-compliance fines for companies that go against their customer’s wishes, the need for a consent management plan has become a pre-eminent concern to several companies.
With user data being put at the risk of exposure more frequently than usual, companies have now taken full responsibility for customer data protection, and have implemented new and improved plans that customers can understand easily to avoid any case of negligence. These plans also work in favor of the company to eliminate any chances of non-compliance and emerging security threats.
That said, here are some important details you need to know about consent management and how it ensures data security for both parties.
What is consent management?
Consent management is a process that aims at seeking approval and informing customers on what data is being collected and the usage practices behind them. It helps customers draw a line between what they desire to share with a business and what they desire not to share.
With the use of a good consent management plan, companies can track and log consent collection, which removes the burden of having to worry if they still remain in compliance with the existing laws and regulations.
While it serves as a system that guides compliance for businesses, the adoption of data privacy software has also helped these companies collect and manage customer consent.
Exponea, a Bloomreach company has helped marketers understand the concept of consent management by splitting it into three consent categories:
- General consent,
- and Legitimate interest
These categories are essential to successful market campaigns and other customer relationship-building plans like email communication.
Consent Management Platforms
The privacy software platform is used to automate the consent management process, which goes way beyond just the storage and collection of customer data, allowing businesses to focus more on customer-centric plans. It ensures that companies have seamless compliance with GDPR and other necessary laws and regulations.
When is consent management necessary?
Traditionally, the best way to collect and process customer data is to obtain their consent. However, GDPR has approved five other approaches businesses can use to process customer data if the initial approach cannot be optimized fully. Here they are;
Performance of a contract: For businesses that offer goods and services to their customers, completing an order can only be possible when customers provide the delivery details. The provision of these details automatically creates a contract, which replaces consent in this context. Consent, in this case, is the final detail a customer willing provides to fulfill their order.
Certain types of data require legal information before a customer profile is declared complete. In this case, businesses are allowed to process this type of data strictly by legal obligation.
Vital interest: The need for consent is overlooked when it requires saving a person’s life. In the cases of healthcare industries, processing customer data without consent is considered legal, as it is done in the best interest of the customer.
Legitimate interest: The consent management process for this case isn’t black and white. Companies can proceed with processing customer data if they believe their reasons for doing so are genuine and harmless. The term “genuine” in this case is subject to legal interpretation and a court debate that decides whether or not the customer data processing is harmless.
Performance of a public task: When carrying out their official duties, certain authorities do not have to comply with the consent management process, as they are doing it in the public’s best interest. It is usually common in government workers, police officers, healthcare workers, and other official authorities in related industries.
The benefits of consent management
With the right consent management plan, companies can:
- Avoid unnecessary non-compliance fees with the help of privacy regulations like GDPR and CCPA.
- Strengthen data security, improve customer experience, and boost brand reputation.
- Gain insights into customer preferences and needs.
- Zero association with other terms and conditions.