In the digital world, websites are global, and they track information from all around the world. So if you’re running a website, it’s essential to be aware of the various consent laws that exist in different countries and to have a central way of managing consent for all these website users.
A consent management platform (CMP) helps organizations manage digital consent from their customers and website visitors. A CMP provides a centralized interface where an organization can get an overview of all the consents they have received from their customers.
With a CMP, you can stay compliant with privacy laws and make sure that you are only collecting the data you have permission to collect. This article will discuss the benefits of having a consent management platform for your business.
5 Benefits of Using a Consent Management Platform
Almost every website uses pixels for data tracking and to gain more insights into the customer journey. However, according to the laws of many countries, you cannot load the scripts of pixels until a user has provided you with consent. Adhering to these laws can be a pain for most businesses. A consent management platform allows you to focus on business development rather than worrying about following data privacy laws.
Let’s dive into discussing the five key benefits of using a CMP:
#1) Automatically displays the correct consent requirement based on the visitor’s location
“The Future of Commerce” trend report for 2022 by Shopify concluded that at least 28% of technology decision-makers worldwide expect that changes to customer data and privacy regulations will hinder their growth goals. With eCommerce on the rise, companies aim to become part of the global market. However, each country has its own data privacy requirement.
With a consent management platform, there is no need to think about the varying laws in countries. Instead, a CMP takes care of the different customer data and privacy requirements based on the location of visitors.
It is an easy-to-use data privacy platform that helps in reducing the risk of non-compliance with the law by automatically checking for consent requirements on all your websites based on geolocation data.
#2) Lower the risk of non-compliance with data protection regulations
Companies must comply with an ever-growing and complex web of data protection regulations. These include the EU’s General Data Protection Regulation (GDPR), California’s Consumer Privacy Act (CCPA), Brazil’s General Data Protection Law (LGPD), and Data Processing Agreement (DPA).
GDPR, the privacy and security law designed to protect the personal data of European citizens, applies to all companies within the European Union and organizations anywhere in the world related to citizens of the EU or doing business with them. GDPR relies on active consent from users, so companies need to get informed consent from users before processing their information.
Similarly, CCPA applies to any for-profit business that collects Californians’ personal data, regardless of whether the business is based in California or not. CCPA doesn’t require active consent. However, if users demand that you should not use their data in certain ways, companies have to follow the demand. In simple words, companies can assume that they have the consent unless they are informed otherwise.
LGPD requires any business that processes data from Brazilians to get consent from individuals before collecting, using or sharing their data. LGPD defines personal data (name, email address, and social security number) as any information that can be used to identify an individual and applies to any data processing, whether by public or private entities.
In addition, companies have to follow DPA – a contract that specifies how a data processor will handle the data. Every company that collects, stores, or processes personal data on behalf of its customers needs to adhere to a DPA. A comprehensive data processing agreement would provide excellent protection for your current users and potential customers.
In short, not complying with data protection regulations runs the risk that your company might have to bear huge costs if a data breach occurs. Every company aims to comply with all privacy laws to reduce its risk of bad press and/or litigation.
Having a consent management platform means that you will not violate any of the above consent laws as the system regularly monitor various privacy legislation, court cases, and expert opinions. In addition, some CMPs can provide data protection impact assessments (DPIAs), GDPR assessments, and CCPA assessments. As a result, you can rest assured that your company will not have to bear fines or other penalties for non-compliance.
#3) Helps you collect only the data that you have permission to collect
In the contemporary world, data breaches are becoming more common. You do not want your customers to lose trust in the company if they get to know that data was processed or, even worse, leaked without their consent. If data has been collected after taking permission, you do not have to worry about customers losing trust. But, of course, that still means you have to protect your company from data breaches.
Your customers will feel valued if you ask for their permission before processing their data. There has never been as much competition in the digital space as there is right now. With rising competition amongst brands, it is vital to improving your customer experiences.
Brands are pushing to create lifetime value for customers and make them loyal to their brand. One way to achieve loyalty is by providing them with personalized experiences.
The first step toward providing a personalized experience is understanding your customer and what they want. You can only do this by collecting data and analyzing it. However, you need to have the customer’s permission before you can start collecting their data. A consent management platform does that for you!
#4) Provides subject rights
Companies need to keep data subject access rights in mind. A consent management platform allows automated portals to be set up. These portals ensure that all data subject access rights requests are processed in a timely and complete manner, ensuring the best possible customer experience.
In addition to that, a consent management platform can provide your business with privacy policies and cookie policies and even assess your privacy posture. A CMPs also automatically block and unblock 3rd party scripts to ensure that your website will never be in trouble from unsanctioned third parties.
You are keeping your website compliant with no code.
To keep track of user activities, you require cookies on your website. This is done by placing a small text file on the user’s device. However, cookies can be a privacy concern for users.
Companies that want to personalize user experiences for advertising purposes must adhere to the law. A CMP can help you by providing a cookie wall that will keep your website compliant.
#5) Summing Up the Benefits of a Consent Management Platform
A CMP can be used to manage consent for cookies, third-party blocking, and even crowd-sourced violation reporting. Some CMPs have a system in which the information is stored on a blockchain, so there will be cryptographically verifiable proof that the record has not been altered.
To protect your customers’ data, you need to have a high level of security – a consent management platform does precisely that. The platform can also help you assess your privacy posture and ensure that you are compliant with all relevant regulations.
A consolidated data privacy platform will have features for all businesses – from small businesses to large enterprises. In other words, by having a consent management platform in place, you can comply with every privacy law in the world.
Previously, companies had to hire experienced employees who would compare copies of policies side by side to see how they’ve changed over time and how they are affected. With the help of a consent management system, the process is automated, so you save valuable time and resources.
In addition to that, you can keep track of the vendors you share data with and automatically monitor their privacy practices. Most importantly, your business will always stay on top of changing regulations. With a CMP in place, your business does not have to invest a fortune to ensure that compliance laws of different countries are followed efficiently.