What is the Data Protection Bill?
The Data Protection Bill is a law passed by Lok Sabha on August 7, 2023, which mandates that every piece of customer data you store and use must be backed by explicit consent. Key Implications:
- Mandatory Consent: The DPDP Act requires explicit, informed consent for all personal data collection and usage.
- Data Re-validation: Existing customer databases will need to be updated with fresh, DPDP-compliant consent.
- Maintaining Transparency: Businesses must clearly communicate their data usage practices to customers.
What’s at Stake if You’re Not Ready
Without adequate preparation, businesses may face several operational challenges:
- Inability to Store Customer Information: Without explicit consent, retaining customer data could become illegal, forcing you to delete customer records.
- Risk to Existing Data: The DPDP requires businesses to revalidate existing customer consent. If you can’t do this efficiently, you could lose access to your current customer base.
- Ineffective Marketing: Without clear consent, you won’t be able to send targeted promotional messages, making your marketing efforts less effective and more expensive.
- Fines and Penalties: Non-compliance will lead to losing customer trust and result in substantial penalties that may significantly affect your bottom line.
How retailers can manage consent with Xeno to stay compliant with DPDP
Singular customer & consent management across multiple channels
In today’s multi-channel world, customers interact with your business through various platforms—e-commerce websites, point-of-sale systems, WhatsApp, and more. Managing consent separately for each channel can be cumbersome and inefficient.
To comply with the Data Protection Bill and streamline operations, you need a single, centralized system to manage customer consent across all touchpoints. Xeno’s Consent Management System offers a unified solution to handle this complexity, ensuring that consent is consistently managed and maintained, no matter where the interaction occurs.
How Xeno Works on the Ground
When a customer interacts with your business for the first time, whether online or in-store, Xeno's system will request their consent by generating a unique OTP.
This consent covers both, PII Data Consent for collecting personal information like names and addresses, and Promotional Consent for sending marketing messages across channels such as SMS, WhatsApp, and email.
Once obtained, the consent is stored centrally, allowing for seamless interactions across all channels. This means that regardless of where a customer interacts with your brand—whether online, in-store, or through other channels—the same up-to-date information is always available and synchronized.
Let’s understand this better with some examples:
A. E-commerce to In-Store
- Customer visits your website and enters their phone number.
- Customer receives an OTP to log in.
- Xeno captures the customer's consent during the login process.
- Customer visits your physical store and provides their phone number.
- Xeno retrieves the customer's information without needing additional consent.
B. New In-Store Customer
- A first-time customer visits your store and provides their phone number at checkout.
- Xeno's system captures their consent instantly with an OTP.
- The consent is stored and shared across all platforms.
- When the customer interacts online or via WhatsApp, their data is already in the system, eliminating the need for repeat consent.
In Summary
Xeno’s Consent Management Product simplifies the complexities of data protection regulations by centralizing consent management across all your customer touchpoints. This not only ensures compliance with the Data Protection Bill but also provides a singular customer experience across channels.
P.S. P.S. We're launching the White-labeled Customer Platform, allowing merchants to manage consent and data seamlessly while engaging loyal customers with personalized offers and communication. Get in touch with us now to be an early adopter and ensure your business is compliant and future-ready.