LGPD: How New Data Protection Laws Can Affect Your Prospecting

0 Comments

LGPD

This article was written in August 2020, the month for which the General Data Protection Law (LGPD) was expected to enter into force.

When we started the year, LGPD was one of the biggest concerns of the organizations’ Sales, Marketing, Compliance and Legal teams. Well, an unexpected scenario emerged and, right at the beginning of the new coronavirus pandemic, Provisional Measure 959/2020, among other points, postponed its start to May 2021.

The MP, however, has not yet been definitively approved by Congress. In other words, although many breathed a sigh of relief with the extra deadline for compliance with the rules, we are not clear about when, in fact, the rules will become valid.

Is this reason to delay actions to comply with the LGPD? Quite the opposite! The best thing is to make the most of the time to ensure that everything is ready for its official start. And this, without a doubt, affects your strategy for capturing leads and prospects.

That’s why, in this article, we provide important information about what can already be implemented in your business processes. Check out!

Inside the LGPD and other data protection laws

The Brazilian General Data Protection Law is not a regulation that emerged in isolation. Since the Cambridge Analytica scandal, in which data from Facebook users was used without consent to guide election strategies and campaigns, the entire world has accelerated the policies already under discussion for data protection.

The European Union took the lead with the GDPR, which was conceived since 2012 and entered into force in 2016. Also, if your company has a relationship with clients from countries that are part of the bloc, you already need to know and comply with this regulation.

But, returning to Brazil, the LGPD was sanctioned in 2018, establishing rules on the collection, storage, processing and sharing of personal data, with punishments for companies that disrespect its conditions. At the time of its approval, organizations would have 18 months to comply – which, we already know, was delayed due to the Covid-19 pandemic.

In a context in which data are increasingly the basis of corporate (and commercial!) strategies, the Law brings the understanding that data, above all, represent real individuals.

Persons who have the right to obtain transparency about how their information is used and who, in addition, may have the power to choose permissions for its use.

LGPD: How Does It Affect Your Prospecting?

If LGPD gives citizens the possibility to know where and how their data is used and to authorize or not its use or sharing, what does this change in our daily sales?

Basically, we need to think about the following steps:

1. Data collection

All data from prospects and customers who enter your database must authorize the use of their personal information, in accordance with its Privacy Policy.

2. Access to data

Users who have information stored in their database need to have access to it, being able to modify or choose to permanently delete the data.

3. Justification of data use

Any collection of personal data must have a clear justification for the individual.

Perhaps, at this point in our article, you are already seeing some impacts on the way your sales are conducted today, right?

That contact list brought by the seller from the previous company, the information exchanged with a business partner who works with the same audience, the base purchased from a supplier with valuable information… if the individual doesn’t consent, you won’t be able to use them.

On the other hand, good sales practices will gain strength, which are even valued by the customer:

  • Relationship building;
  • Transparency about data usage;
  • Personalization of information.

Steps to complying with the LGPD – without waiting for it to take effect

Whether the LGPD will have a big impact on your sales operation is clear why it’s important to start taking action now, not just when we get closer to it coming into effect.

Below, we list some steps and points of attention that can already be worked on:

1. Understand the current status of data capture and usage

Undoubtedly, the first thing to do is to look at your area’s processes and your CRM system to get a real picture of how data is captured in the company today. This includes, of course, involving other areas, which also enrich the profile of each prospect and customer with data.

From this, a compliance committee must be set up, both to adjust the capture of new data, and to obtain consent to use the data already stored.

Here, it is worth remembering: it is not enough to have permission to store personal information, but also to use it in the initiatives you want.

2. Understand the legal bases of the LGPD

LGPD provides different legal bases for authorization of the processing of personal data, for which your company must comply.

The most common in sales are contracts, consent and legitimate interest, but there are other bases that can be considered depending on your business profile and customer relationship.

3. Review Outbound actions

Buying lists of so – called “data-brokers” is a very common practice for prospecting activities. Based on pre-established criteria, considering the ICP, we generally acquire these bases containing different information for different Marketing and Sales actions.

The bad news is that most vendors on the market are not LGPD compliant, as they do not have the legal bases we mentioned above. There are even some players that are raising lists of consumers who choose to receive marketing communications, but we have to be realistic that these bases will be more restricted and possibly more expensive.

So, how to guarantee results via Outbound? Calm down, there are still ways to succeed with this strategy:

  • Focus on creating a relationship in actions such as Social Selling and obtaining consent to use the information in Marketing and Sales;
  • Capture prospects at events and relationship meetings;
  • Between others.

Of course, for this to work, it will be essential to enable the team to prospect in accordance with the LGPD and seek relationship and personalization in interactions.

4. Adapt Inbound Marketing Strategies

Although many Marketing professionals see the LGPD as something that will compromise the results in the funnel, due to the possibility of reducing registrations, there is a great opportunity with the regulation to focus more on quality than on the volume of data collected.

Speaking specifically about inbound lead capture, some factors are essential:

  • Obtaining consent on all forms, both for the use of data in marketing strategies, and confirmation in accordance with the terms of use and privacy policies;
  • Start a consent process with the base already captured – great that we gained extra time for this!
  • Request permission to use browsing cookies in your re-marketing campaigns.

5. Rely on specialized help

The LGPD, like any legislation, has several details that need to be carefully understood and complied with.

Therefore, our recommendation is that your company also seek support from a law firm or a consultancy specializing in data protection to look at your complete scenario and avoid any breach that could lead to some risk.

This, of course, will come at some cost. But it will pay off in the long run, mainly because we must move more and more towards this scenario of transparency about the use of personal information.

It is not a question of anticipating the LGPD. We’re already late.

Before the change of date for the start of the LGPD in Brazil, the scenario was quite complex, since most companies were late in their adjustment processes. By reading this article, you probably also understood the scale of this task and how much it can impact the entire company’s strategy.

Therefore, even in the face of all the uncertainties that we have in the market today, it is necessary to run. The sooner the actions to comply with the regulations are implemented, the sooner you and your team will be able to test new ways to capture registrations and new strategies to increase the conversion of users who consent to the use of your data in your commercial activities.

 

Tags: , , , , , , , , , , , ,