Pros and cons of out-of-the-box consent management tools

The substantial surge in data privacy regulations, coupled with heightened consumer awareness, has led to businesses becoming increasingly conscious of data privacy.

The advent of the EU’s omnibus data protection law, GDPR, has created a chain reaction across the globe, setting an example for a comprehensive law around data privacy and security.

Consequently, organizations are now obliged to obtain explicit consent from users and keep a record of it, spanning from its collection to withdrawal, for audit purposes.

Necessity is the mother of invention. With the rising demand for compliance with data protection laws, a slew of consent management tools have emerged to meet the requirements of varying business sizes.

When it comes to setting the gold standard for compliance, there is no one-size-fits-all.

Businesses need to find an adept solution as per the complexity of consent management that comes bundled in the form of managing consent across various platforms and jurisdictions.

Out of a wide variety of consent and preference management tools available, both out-of-the-box and customizable, it can be difficult for businesses to find the right solution for their requirements.

Many foundational technology providers, like CRMs and CMS, have created built-in solutions for collecting and managing consent and preferences. There’s also a wealth of plug-and-play type vendors.

But do they meet the complex requirements of large scale enterprises?

• Why are consent and preference controls within CMS/CRMs not a good option?
• Importance of customization, scalability, and robust compliance features
• Alternative solutions to effectively manage consent at an enterprise level

Why are out-of-the-box consent management tools not a good option for enterprise-level businesses?

Many organizations default to using the consent and preference controls pre-built within CMS or CRMs.

Which makes sense.

These types of platforms are central to your overarching sales and marketing strategy, so in theory the integration of consent management makes day-to-day life much easier.

Who needs yet another tool to look after, right? Tech stack sprawl is real.

They’re also generally more budget-friendly. Cost savings in such cases can be attributed to a host of factors, including:

• Purchasing and implementing the cost of a third-party solution
• Expenses on ongoing maintenance and support for a third-party solution
• Data integration between a third-party solution and a CMS can be time-consuming and expensive.

However… these out-of-the-box tools have limitations.

When it comes to enterprise-level businesses, their complex needs in terms of meeting compliance with multiple jurisdictions, collecting consent across multiple platforms for varied data processing activities, and protecting high volumes of sensitive data are not necessarily met with pre-built consent management systems.

Importance of customization, scalability, and robust compliance features

Customizable consent and preference controls are the most effective tools for businesses that deal with high volumes of data and customers.

And for businesses dealing with sensitive customer data, prioritizing data privacy and security becomes paramount.

It goes without saying that the safety and privacy of data improves customer trust, so businesses need to have adequate measures in place by shifting privacy to the front of their priorities.

One of the core components of the privacy by design principle is having adequate consent and preference mechanisms in place that are customizable, scalable, and equipped with robust compliance features.

Having a customizable and scalable mechanism can be costly, but, in the case of enterprise-level businesses, the ROI of implementing and managing consent and preference solutions is higher due to the volume of consents being managed.

Businesses, especially in financial services and healthcare, are subject to stringent data privacy regulations. Out-of-the-box preference control tools are not recommended because they simply cannot deliver the complex requirements.

Instead, flexible tools with granular consent controls and real-time integrations are a must for long-term consideration.

Consent and preference controls come in handy with the following features:

Customizable functionality

Customization enables enterprise-level businesses to tailor consent and preference management processes to their specific requirements, brand messages, and user experiences. Customized tools keep brands consistent across platforms and foster a cohesive experience across various touchpoints.

Their seamless integration with existing systems and workflows minimizes disruption and catalyzes operational efficiency. Their bit-by-bit compartmentalization of consent options allows users to make comfortable choices, enhancing user trust and transparency.

Scalability

As enterprises grow, the responsibility to handle the increasing volume of user interactions and data processing activities grows in parallel. In such scenarios, scalable consent and management tools ensure consistent performance regardless of the amount of load.

These tools eliminate the need for frequent overhauls and ensure smooth user experiences as user bases expand. These tools can accommodate diverse user populations, which is best for enterprises functional across multiple regions and regulatory demands.

Auditable compliance

Robust compliance plays a crucial role for enterprise-level businesses to maintain adherence to a complex suite of data protection regulations and demonstrate accountability. Such controls help businesses create a detailed record of user consent and preferences.

Maintaining records helps generate compliance reports for internal and external stakeholders, as well as aiding in demonstrating compliance to regulatory audits and investigations. These tools should be designed with rapid adaptation to changing regulations and navigate smoothly through regulations of both overlapping and conflicting kinds.

More advanced consent management platforms also provide features like DSARs, RoPA and data exports to streamline efficiencies for compliance and data protection teams.

Alternative solutions to effectively manage consent at an enterprise level

There are alternatives to out-of-the-box consent management tools.

You can of course opt to build a solution in-house, though this can be costly and difficult to maintain as data privacy evolves. You’ll need internal teams to develop and manage it in the long-run.

The other option is to choose a consent management platform (CMP).

Generally speaking, CMPs can be configured to meet the specific demands and requirements of enterprise businesses, like complex workflows, grouping rules, meta data, branding and comprehensive compliance controls.

Businesses can tailor the platform interface to deliver their brand message and meet user expectations. Their seamless integration capability with CRM platforms, data processing tools, and other consent management systems allows for centralized consent management and enforcement.

These tools also reduce reliance on third parties and allow organizations to have full control over the development and maintenance of the solution.

Of course, not all consent management platforms are created equal, with varying degrees of customization, scalability and control.

Make an informed decision

Consent and preference management tools play a pivotal role in a business’ smooth operation. Be it complying with data privacy regulations or delivering the right marketing messages to customers.

While out-of-the-box consent management tools solve the problem of compliance and provide customers with an easy way to manage consent, their limited features fail to meet the requirements of enterprise-level businesses.

Organizations should first assess their requirements and test them against the features offered by a platform to find out to what extent they are met. The best idea is to invest in solutions that are scalable and customizable, which keeps a business’ present and future requirements in check.