April 13, 2021 | Report
Findings from a global survey by The Conference Board reveal widespread anxiety and cynicism among US consumers—even more so than among peer consumers around the world.
In the digital ecosystem, the freedom to browse, buy, and engage online is a tradeoff with data privacy. Findings from a global survey by The Conference Board reveal that US consumers are cynical about data practices—more so than their peers around the world. Given how important user-friendly data practices are to consumers, such practices may grow as a differentiator and a potential competitive advantage for companies. By building trust and satisfaction with new and existing customers and minimizing negative reactions, improved data practices may ultimately pay off financially.
US consumers are more concerned about the downsides of data sharing than global peers. Data breaches, third-party sharing, and nontransparent data practices are a worry for more US consumers than elsewhere, but there is less concern about foregoing products/services in exchange for more data privacy. A fifth of US consumers have patronized a brand less or dropped it, due to their data practices, underlining the potential financial repercussions and urgency to rebuild trust with consumers. This can be achieved through transparent data practices; offering different levels of data sharing in return for specific benefits; minimizing, anonymizing, and not storing collected data; and using contextual rather than person-specific customization.
More so than their global peers, US consumers believe the use of personal data mostly benefits companies rather than themselves. Three quarters believe this is the case. And only a quarter think corporate data use has improved their lives. This might partly be an awareness issue. For long-term customer satisfaction, companies need to explain how the use of personal data benefits their users. Such communication should make users aware of free and personalized content, as well as enhanced convenience and services enabled by personal data. Highlighting free offerings as a benefit of sharing data may be particularly valuable since it is the benefit that US consumers are least willing to give up (nearly 40 percent oppose).
US consumers are more categorically against third-party data sharing than their global peers. Almost 40 percent of US consumers would always disagree with third-party sharing. However, about the same share would find third-party sharing acceptable if they had control over what was shared or whether the data was shared for select transactions that benefit them. There is also a segment—almost a fifth of US consumers—that is receptive to financial compensation in return for sharing data. US consumers perceive their data as valuable. This is confirmed by their strong sentiment that they should be the exclusive owner of the personal data collected by companies: 61 percent of US consumers feel this way—vastly more than internationally. Hence, giving consumers control over their data, including the right to review and delete data, and offering compensation for third-party sharing would align with consumers’ desires to control their data and create trust and satisfaction.
A third of US consumers would agree to be tracked in exchange for discounts on certain services or information related to their current location. People ascribe value to their data and want value in return, with certain discounts and location-related information being their most preferred benefits. US consumers are least willing to share their presence in public places and communications with voice assistants. Overall, the number of US consumers who are reluctant to share data, even for defined benefits, is larger than those who are willing to share. The only exception is sharing one's location to receive location-specific data, which slightly more US consumers are open to rather than opposed. This highlights the importance of giving choices for different benefits and levels of data tracking so consumers can self-select.
Almost 60 percent of US consumers prefer data privacy over data-enabled personalization. While personalized suggestions for purchases are often highlighted as an incentive to share data, such personalization seems to be a benefit few US consumers appreciate. As for different types of personalization, people value information related to their current location more than customized suggestions based on their past purchasing and consumption behavior. To increase awareness and appreciation of personalization, companies could indicate which offerings, messages, and experiences are customized and give the option of generic content to demonstrate the difference.
Discerning data practices can gain customer trust and goodwill. Almost 40 percent of US consumers would appreciate companies keeping data collection to a minimum. Reducing data collection and storage and letting consumers know about such policies could help increase customer satisfaction. In addition, about a quarter of US consumers would appreciate an independent organization that assesses and certifies companies’ data practices, tools to control incoming email, and a customer hotline for data questions—all of which can build customer trust.
Compared to other regions, fewer US consumers look to the government to oversee corporate data practices. In the US, private consumer advocacy groups are the most favored data watchdog (almost 23 percent). Just 7 percent believe legislators should supervise data practices. Although 19 percent favor government-run consumer protection agencies, 43 percent prefer initiatives with some kind of corporate involvement.
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December 07, 2024 | Newsletters & Alerts