GDPR – the EU General Data Protection Regulation – is among the biggest legislative changes to hit UK businesses in years. Organisations that fail to adhere to the new rules face fines of €20m or 4% of their global turnover. And there’s no limit on size of business; it affects everyone.
In 2007 the CIA had a day at the races, running an experiment on information overload - specifically, among professional horse race gamblers. The organisation found a break point at which too much information became a drawback. Once an experienced handicapper had the minimum information necessary to make an informed judgement, the additional information didn’t lead to more accuracy in their predictions – only overconfidence.
In a growth-driven world, businesses often focus on the new: new markets, clients, products or services. Too often they miss our most reliable source of profit – existing customers. The probability of selling to an existing customer is somewhere between 60% and 70% compared to between 5% and 20% for successfully selling to a new prospect. They’re also cheaper to market to, it costs three times as much to win a new customer as it does to retain an old one.
The clock is ticking for UK businesses to become GDPR-compliant, with the legislation coming into force in May 2018. The consequences of failing to adhere to the new rules are considerable: businesses of all sizes face fines of €20m or 4% of their global turnover.
If you haven’t started budgeting for 2018, what are you waiting for?