Nearly 80% of customers will provide personal information to what they consider a “trusted brand,” according to a new consumer behavior study from SDL.
The survey revealed that while consumers are not comfortable with being “tracked” in a physical store, they tend to not read brands’ privacy policies or take measures to opt-out of web tracking practices.
The survey findings highlight SDL’s Data and Privacy Study 2014, the latest in a series of SDL research reports that look at how the new, more empowered consumer is fundamentally changing industries and brands. Now that marketers have access to significant new levels of data and consumer insights, consumers are raising questions about corresponding threats to their privacy, which makes it especially important for organizations to examine the best ways to use information to deliver a consistently compelling and engaging customer experience.
The study surveyed over 4,000 consumers across the U.S., U.K., and Australia.
Here are some of the key takeaways:
Consumers reward trusted brands: Globally, 79% of respondents are more likely to provide personal information to a “trusted” brand. This underscores the need for brands using digital marketing to develop trust and understand what information consumers are willing to exchange with a brand.
Privacy meets resistance: Overall, 62% of survey respondents worry about how marketers are using their personal information. The results suggest a culture of resistance to sharing data online.
Older consumers worry more: In the U.S., 59% of consumers between ages 18 and 29 worry about data privacy compared with 71% between ages 45 and 60. There is less concern about data privacy overall in the U.K. (48% in the younger generation, 63% older) while Australian consumers reflected less of a generation gap (60% younger, 66% older).
Consumers willing to share certain details: Of the items that consumers are most willing to share, gender, age and income top the list. However, name of spouse, lists of family and friends and Social Security numbers are items that most consumers won’t share with brands.
Loyalty programs beat out free products: Overall, 49% of respondents said they would give up personal information for a loyalty program, but only 41% would do the same for free products and services. These findings show consumers are less attracted to free offers and more willing to engage with a brand when it communicates clearly and focuses on building trust.
Consumers reject in-store tracking: Of those respondents that have a smartphone, 76% are not comfortable with retailers tracking in-store movements via smartphone and Wi-Fi. This shows brands are not communicating the benefits of tracking behavior and purchases.
Consumers aren’t using privacy features: While consumers are concerned about how their data is being used, 72% of global respondents rarely or never use “Do Not Track” or “Incognito” features that would allow them to opt-out of website tracking.
Consumers skip website privacy policies: Overall, 65% rarely or never read a website privacy policy before making a purchase. The most active policy readers are in Australia, where 44% always or often read the fine print.
“The survey data clearly shows consumers are concerned with the way marketers are using their data, but they are willing to share certain details with brands they trust,” Mark Lancaster, CEO and Founder, SDL, said in a press release. “Marketers and brands need to earn that trust to be successful. They need to ensure the customer data they use translates to a better experience for their customers and give customers a compelling reason to share their data. Marketers that understand their customers’ privacy concerns and commit to using customer data judiciously will create a strong customer commitment.”