# 85% of firms struggle to comply with GDPR by deadline, but opportunity exists for organizations who get it right
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-05-19
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Secure Your Future: How GDPR Compliance Drives Consumer
Meta Description: Discover how firms protecting personal data can boost consumer trust and loyalty, leading to a 24% increase in spending. Learn more now!
URL: https://financedigest.com/85-of-firms-struggle-to-comply-with-gdpr-by-deadline-but-opportunity-exists-for-organizations-who-get-it-righthtml

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_39% of consumers have increased their spend by as much as 24% with firms that are protecting their personal data_

**With GDPR coming into effect in just over a week from today, 85% of firms in Europe and the United States will not be ready on time. Additionally, one in four will not be fully compliant by the end of this year, according to a new report today from** [**Capgemini**](https://www.capgemini.com/) **’s** **Digital Transformation Institute. “** **Seizing the GDPR Advantage: From mandate to high-value opportunity** **” surveyed 1,000 executives and 6,000 consumers across 8 markets to explore attitudes to, readiness for, and the opportunities of GDPR.**

**A race against the GDPR clock**

With the May 25th GDPR deadline fast approaching, there is a mixed picture across Europe when it comes to readiness. British businesses are the most advanced, [despite only 55% reporting](https://www.financedigest.com/geberit-reports-q1-beat-despite-end-of-bathroom-renovation-boom.html "Geberit reports Q1 beat despite end of bathroom renovation boom") they will be largely or completely compliant. Spain (54%), Germany (51%) and the Netherlands (51%) are close behind, with Sweden having the most work to do: just 33% of Swedish firms will be largely or completely compliant on time.

The [research suggests that some companies are overlooking the business opportunity](https://www.financedigest.com/title-gallium-68-market-research-methodology-business-opportunities-and-analysis-report-by-2031.html "Gallium-68 Market Research Methodology, Business Opportunities and Analysis Report by 2031") of GDPR. Nearly one-third of firms are focusing on compliance only: 31% report that the focus of their program is to comply with the mandate rather than gain [competitive advantage](https://www.financedigest.com/ai-holds-the-key-for-both-competitive-advantage-and-risk-mitigation-in-2022.html "AI holds the key for both competitive advantage and risk mitigation in 2022"). Furthermore, although non-compliant organizations face fines of up to 4% of annual revenue, [nearly 19% say ensuring they are prepared](https://www.financedigest.com/dollar-near-one-week-high-as-traders-prepare-for-powell-payrolls-tests.html "Dollar near one-week high as traders prepare for Powell, payrolls tests") is not a priority for them.

**A missed opportunity for [boosting the top](https://www.financedigest.com/spains-top-soccer-clubs-to-get-cash-boost-from-3-2-billion-la-liga-deal.html "Spain’s top soccer clubs to get cash boost from .2 billion La Liga deal") line**

The [research suggests](https://www.financedigest.com/new-research-suggests-over-13-million-brits-were-inadequately-managed-while-working-remotely-2.html "NEW RESEARCH SUGGESTS OVER 13 MILLION BRITS WERE INADEQUATELY MANAGED WHILE WORKING REMOTELY*") that firms who have got ahead of the deadline, and invested in compliance and data transparency with consumers, are starting to reap the rewards. Of those consumers that are convinced an organization protects their [personal data](https://www.financedigest.com/data-privacy-and-navigation-how-our-personal-data-is-used-in-navigation-apps.html "Data Privacy and Navigation: How our personal data is used in Navigation Apps."), 39% have purchased more products and increased spend with that individual firm as a result. This increased spend is substantial, with these [consumers spending](https://www.financedigest.com/as-consumer-spending-increases-convenience-and-security-have-never-been-more-important.html "As consumer spending increases, convenience and security have never been more important") as much as 24% more. In addition, 40% have transacted more frequently with the organization, either a few times or on a regular basis. The benefits go beyond spending too: 49% say that they have shared positive experiences with friends and family, bolstering a firm’s reputation [among potential consumers](https://www.financedigest.com/epi-how-to-build-trust-and-adoption-among-consumers-and-merchants.html "EPI: How to build trust and adoption among consumers and merchants").

Rupert Bedell, CMO of Unum, a leading insurance firm in the US and UK, said of the benefits of GDPR, “It will encourage marketers to talk to [people when they need](https://www.financedigest.com/britain-says-6000-more-people-needed-for-trial-of-merck-covid-pill.html "Britain says 6,000 more people needed for trial of Merck COVID pill") something and not simply contact them about something they might want. Rather than pushing products using flaky data, we can handle [data in a smart way](https://www.financedigest.com/four-ways-data-and-ai-can-transform-financial-services.html "Four ways data and AI can transform Financial Services") to create magic moments when people really require help.”

**Empowered Individuals**

GDPR is also empowering consumers to take action over their own data. Across Europe, 57% of individuals [say they will take action against an organization if they know a firm](https://www.financedigest.com/over-a-dozen-chinese-based-firms-say-they-have-minimal-exposure-to-svb.html "Over a dozen Chinese-based firms say they have minimal exposure to SVB") is failing to adequately protect their personal data. Of these, more than 70% will take actions such as reducing their spending (71%), stopping doing business with them (71%) or sharing negative experiences with family and friends (73%).

To help counterbalance this, the [report highlights](https://www.financedigest.com/bone-grafts-and-substitutes-market-overview-highlighting-major-drivers-growth-and-demand-report-2018-2026.html "Bone Grafts and Substitutes Market Overview Highlighting Major Drivers, Growth and Demand Report 2018 – 2026") that firms need to make sure they recognize the level of trust their customers have in them. Right now this is not the case: [almost three quarters](https://www.financedigest.com/almost-a-quarter-of-uk-employees-havent-missed-anything-about-the-workplace.html "Almost a quarter of UK employees ‘haven’t missed anything’ about the workplace") (71%) of executives believe that consumers will not take any significant action, such as to have their data removed. In addition, eight in ten [say customers](https://www.financedigest.com/sports-and-athletic-insole-market-players-eye-custom-and-3-d-printed-products-for-performance-optimization-says-future-market-insights.html "Sports and Athletic Insole Market Players Eye Custom and 3-D Printed Products for Performance Optimization, Says Future Market Insights") trust their organization with the privacy and security of data, but just 52% of consumers agree. This misperception [means businesses](https://www.financedigest.com/carbon-zero-what-it-means-for-business-owners.html "Carbon Zero: What it Means for Business Owners") are missing out on the potential bottom-line benefits previously highlighted and only 11% are centering their GDPR compliance efforts on customers’ needs.

_“Executives now have a great chance to use GDPR to [create a customer-first privacy](https://www.financedigest.com/european-privacy-watchdog-creates-chatgpt-task-force.html "European privacy watchdog creates ChatGPT task force") strategy. That [business opportunity](https://www.financedigest.com/new-report-of-fuel-conditioning-system-market-with-size-growth-drivers-market-opportunities-business-trends-and-forecast-to-2028.html "New Report Of Fuel Conditioning System Market With Size, Growth Drivers, Market Opportunities, Business Trends And Forecast To 2028") is significant,” said Willem de Paepe, Global GDPR leader at Capgemini. “Beyond gaining consumer confidence and increased spending, knowing exactly what [data is held allows firms to use analytics](https://www.financedigest.com/top-5-data-analytics-trends-for-2023.html "Top 5 Data Analytics Trends for 2023") more effectively and improve operations. Firms will also know which files they must delete, freeing up valuable storage space and reducing some of the_ [_$3.3 trillion_](https://www.bloomberg.com/professional/blog/big-data-good-data-closing-gap-data-governance-business-insights/) _it will cost to manage data globally by 2020.”_

A copy of the report can be downloaded here.

**Research Methodology**

The results in this report are from two groups: private individuals and executives of large companies. Capgemini’s [Digital Transformation Institute](https://www.financedigest.com/how-a-zero-trust-architecture-can-help-accelerate-digital-transformation-for-financial-institutions-without-sacrificing-regulatory-compliance.html "How a zero trust architecture can help accelerate digital transformation for financial institutions without sacrificing regulatory compliance") (DTI) questioned 1000 executives from organizations with revenue of over $1 billion across eight countries: France, Germany, Italy, Netherlands, the UK, the USA, Sweden, and Spain. In addition, the DTI spoke to 6000 consumers (aged 18 and above) across seven [European markets](https://www.financedigest.com/white-bullets-collaboration-with-polands-sygnal-association-significantly-reduces-ad-funded-piracy-in-key-european-market.html "White Bullet’s collaboration with Poland’s Sygnał Association significantly reduces ad-funded piracy in key European market") that come under GDPR: France, Germany, Italy, Netherlands, the UK, Sweden, and Spain.

The survey was conducted in March-April 2018.


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