GDPR set to transform effectiveness of customer databases, GlobalData

With the new EU GDPR (General Data Protection Regulation) law coming into effect today, retailers are likely to lose a significant chunk of their customer data as consent requests are ignored or refused. But this could actually work to their advantage, argues GlobalData.

Sofie Willmott, a Senior Retail Analyst for GlobalData, comments: ‘‘A smaller subscriber base may reduce the scale of communication channels available to retailers, however they will be left with their most loyal and engaged shoppers to communicate with which will lead to better conversion rates and a clearer indication of good and bad performing content.’’

Pureplays with large tech divisions are likely to be the best placed to cope with this change. Asos has so far been the standout retailer acting to address the GDPR requirements by requesting consent from its customers via clear messaging on both its website and via email.Willmott adds: ‘‘Multi-channel retailers, though generally having a tougher time than their pureplay counterparts and less cash to spare, must invest in making changes to futureproof their companies as this issue will only become more prominent as consumers become more conscious of the use of their personal information and the increasing powers they have to control it.’’

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