There has been a considerable amount of discussion within the B2B sales community about whether cold calling is legally permissible under the General Data Protection Regulation (GDPR). This comprehensive guide will provide an in-depth look at how GDPR affects B2B cold calling, and how sales teams can ensure they are conducting their outreach in a GDPR-compliant way.
The General Data Protection Regulation (GDPR) is a set of guidelines designed to empower individuals to have more control over their personal data. This regulation is binding throughout the European Union (EU) and the European Economic Area (EEA). It seeks to set clear boundaries for organizations on how to appropriately use and process personal data.
Several nations have adopted their version of the GDPR, modifying some regulations while retaining the overall objective of preventing unsolicited communication or misuse of personal data. A notable example outside Europe is the California Consumer Privacy Act (CCPA) in the United States.
The GDPR grants individuals more control over their data, which includes understanding where the data originates, the option to withdraw consent, and the right to refuse to be contacted without prior consent. Non-compliance could result in penalties up to €20 million or 4% of global turnover, whichever is higher.
Under GDPR, organizations can only use someone's personal data for sales and marketing activities if they can demonstrate they have the lawful right to do so. This right is often referred to as 'legitimate interest'.
A legitimate interest implies that the prospect is being contacted about a product or a service that is genuinely suitable for them. It's important to note that a prospect's desire not to be contacted can override the salesperson's legitimate interest.
GDPR compliance also involves ensuring that the prospect isn't on a 'Do Not Call' list. It's crucial to note that such lists are country-specific, meaning they must be checked on a nation-by-nation basis.
For sales professionals to follow GDPR guidelines, they have to adopt a customer-centric approach. They should always introduce themselves at the beginning of the call, explain why they are calling, and respect the prospect's decision if they do not wish to talk.
Also Read: Best Cold Calling Opening Lines
Opting out and following the rules around legitimate interest aren't difficult.
Introduce yourself and explain why you're calling the prospect at the beginning of the conversation and there are two possibilities:
B2B data providers like SMARTe can play a significant role in ensuring GDPR compliance. They can help by conducting regular screenings of phone numbers against global Do Not Call lists, maintaining compliance certification, having in-house GDPR data regulation, and offering data subjects the chance to opt out of their database at any time.
Under GDPR, both cold calling and cold email outreach are considered unsolicited communications. This definition necessitates a customer-focused approach from sales teams. Marketers can aid sales teams in gaining permission through lead generation tools or insights on web forms.
When making calls to existing clients for upselling or promotions, it's safe to assume that they have given consent for contact and that there's a valid reason for your call.
GDPR's Article 6 outlines six legitimate reasons for organizations to use personal data. Sales teams should focus primarily on obtaining explicit consent and using data to pursue legitimate interests.
If a company's website displays contact information for its personnel, it implies that it's acceptable to contact them regarding sales-related matters. However, if someone questions the source of a phone number and expresses discomfort with being contacted, it may indicate that the intended recipient has not been reached.
B2B data providers must go an extra mile to validate and sort out business and private numbers to provide their clients with GDPR-compliant data. To be compliant, the data controller and data processors need to have a notification process in place.
The Privacy and Electronic Communications Directive (ePrivacy Directive) governs unsolicited communications for direct marketing purposes, such as consent (opt-in or opt-out) required for sending cold emails or making cold calls. The rules vary slightly between each country.
In the UK, you can make live calls without consent to a number if it is not listed on the TPS (UK’s Do Not Call register) AND if that person hasn’t objected to your calls in the past. Your calls must be fair, which means you must not make any calls that the person would not reasonably expect, or which would cause them unjustified harm.
When it comes to emails, you can send them to any company, partnership, or government body at their corporate email address. If you are emailing employees who have personal corporate email addresses, you need to give them the right to opt out of marketing.
While GDPR has imposed certain restrictions on B2B cold calling, it hasn't banned the practice entirely. By understanding the rules and regulations and implementing the best practices outlined in this guide, sales teams can continue to leverage cold calling as an effective sales strategy while remaining GDPR-compliant.
SMARTe provides SOC2, GDPR and CCPA-compliant data. We maintain compliance with the GDPR in the following ways:
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Nitesh is SMARTe’s Head of Growth Marketing. He writes on topics within B2B marketing and sales, providing readers with real life, actionable tactics.
GDPR, the General Data Protection Regulation, imposes strict rules on the processing of personal data, including for marketing purposes such as cold calling. While GDPR does not explicitly prohibit cold calling, it requires businesses to obtain explicit consent from individuals before contacting them for marketing or sales purposes. This means that cold calling is allowed under GDPR regulations only if businesses have obtained valid consent from individuals to receive such communications.
GDPR applies to phone calls made for marketing or sales purposes, including cold calling. Businesses must comply with GDPR requirements when processing personal data obtained from individuals during cold calling activities. This includes obtaining explicit consent, providing clear information about the purpose of the call, respecting individuals' rights to opt-out of further communications, and maintaining records of consent and preferences.
GDPR offers significant protections for customers in relation to cold calling and other marketing activities. It grants individuals greater control over their personal data by requiring businesses to obtain explicit consent before contacting them for marketing or sales purposes, including cold calling. GDPR also gives customers the right to opt-out of receiving further communications at any time and provides mechanisms for individuals to access, rectify, and delete their personal data held by businesses.