Will consumers ever feel better about sharing their data?

Will consumers ever feel better about sharing their data?

According to a new survey, consumers’ privacy concerns are growing and they want more control over their personal data.

A survey of 6,500 mobile consumers across 10 countries in MEF’s “2017 Consumer Trust Study” found 53 percent feeling they’re not in control of the way their data is used. Of these, 39 percent agree to the terms and conditions presented to them, but “only reluctantly.” This is especially true in the U.S. (48 percent). The rest of the 53 percent is made up of the 14 percent who say that they know information is being collected but are never asked for permission. A further 14 percent indicated they didn’t even know apps and services use their personal data.

Much of the study highlighted the importance of consent and control around personal data:

  • The two main concerns are their personal information getting stolen, 49 percent; and information being shared without their permission, 48 percent;
  • Financial details, 55 percent, was considered the most sensitive data. That’s followed by photos/videos, 39 percent; their own contact info, 38 percent; friends and family contact info., 32 percent; and location, 27 percent. Areas deemed less sensitive included purchase history, 19 percent; web browsing history, 16 percent; and social media activity, 13 percent.
  • Sixty-seven percent want to take on the management of their own data;
  • When asked what would help build trust in app and services, 42 percent wanted to be able to have their data deleted. Forty percent wanted to be able to withdraw permission for it to be used. Thirty-eight percent want transparency and to have control over whether their data is shared with third parties while 37 percent want to be able to decide what kind of information is shared.
  • Thirty-seven percent said the most convenient way to be asked permission to collect and process their personal data would be within each individual app or service; 26 percent suggested a “single app” that alerts them whenever any company wants to collect their information. Twelve percent are happy for their mobile phone provider to manage permissions on their behalf.
  • MEF’s 2017 Consumer Trust Study – MEF

BrainTrust

"What shoppers are asking for is almost the impossible -- give me relevancy and leave me alone. But that's what they want."

Paula Rosenblum

Co-founder, RSR Research


"...we need to learn restraint and stop the mythology that we can, with data, choose for the consumer..."

Doug Garnett

President, Protonik


"As consumers become wiser to phones listening to them and TVs too for data collection, trust will erode even further."

Celeste C. Giampetro

VP Marketing, PebblePost


Discussion Questions

DISCUSSION QUESTIONS: What steps could retailers take to help consumers feel better about sharing their personal data? How practical is it to give consumers more control over the way their personal data is managed?

Poll

21 Comments
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Jon Polin
6 years ago

I think of my personal data as the centerpiece of a pact between me and the company that uses that data. If the user uses my data in a way that enhances my life, I’m good with that. If not, you can’t have my data. Google is an example of a company that uses my data to enhance my life. I’m all for Google tracking my whereabouts and telling me how far I am from important places in my life, e.g. home and office. And Google does a reliably good job of populating my feed with relevant content. For a retailer, this means that they should use my data to simplify my path to purchase for products I buy with any regularity and smartly use my data to present products I may want to buy. Abuse my data by sending me irrelevant offers and I want no part in sharing that data with you.

Gene Detroyer
Noble Member
6 years ago

My problem with this entire discussion is that the same people who are “concerned” about their personal data give it away thoughtlessly and without concern to multiple places that they interact with. If you are going to be operating in this world, expect those places you interact with will have your data. Get used to it.

The only place I don’t want my data is with the government. (OK, wishful thinking.)

Sterling Hawkins
Reply to  Gene Detroyer
6 years ago

Privacy is cultural and it changes over time. Years ago nobody would dream of sharing their pictures with the entire world; now most people don’t think twice about a public Facebook post. What moves the needle is the value exchange: is what I am getting as a customer worth the privacy I am giving up? I’m with Gene that many people don’t think twice about their decisions to give up their data. It also points to the fact that many retailers do not provide enough consistent value back over time so it continually feels worth it.

Kim Garretson
Kim Garretson
6 years ago

One troubling issue in this story is the rising tide of fake “don’t share your data” scams, especially on Facebook. This conditions people to not trust even beneficial uses of their data. The motivation for these is someone unclear. It may be jokesters simply seeing how many share they can get, or it may be those motivated by money to get clicks to their fake news pages for ad revenue. I received the following false warning (debunked on Snopes) from two Facebook friends this weekend.

Ian Percy
Member
6 years ago

Do I understand that retail wants to collect and manipulate all my personal information with all the risks and invasiveness that brings with it … but they now want me to actually like it? How endearing.

It may be too late, but I’d direct retailers who think they “own” the consumer and have a “right” to their data to the Province of Ontario and their application of “Privacy by Design” principles. You can find it here. Pay particular attention to the Seven Foundational Principles of such a strategy.

Retail has already dug a hole around pricing battles and now it begins another even deeper one around privacy battles.

Nir Manor
6 years ago

Privacy issues have always been and will continue to be a major concern for consumers, mainly because of a few reasons. First, because most consumers do not really understand the topic and they are afraid of the uncertainty surrounding their data being used. Second, because of lack of transparency by retailers and third because consumers do not see the value they get out of sharing data with retailers.

Most consumers know that by using Google and Facebook their data is collected and used. They mostly silently agree to this and continuously use these platforms because they get real value from using search, social media and other uses.

As for retailers, they should be more transparent and address consumers’ concerns in a direct way. They should explain how they protect the data, what data they collect and if and how it is shared with third parties. Consumers need to understand whats in it for them — that if they share info the retailer can personalize better offers for them.

Giving consumers control over the way their data is managed is less practical, but consumers should be able at any point to opt out and change their consent regarding sharing their data.

Celeste C. Giampetro
Reply to  Nir Manor
6 years ago

You hit the nail on the head, Nir. Transparency is the key to assuring consumers that the marketer is bringing VALUE and USEFUL CONTENT into the exchange. Those retailers that embrace 1) explaining in clear language — not legalese — what data you collect, where you get it from, and how it will be used will be rewarded 2) due diligence on where they get data from, meaning do you retailer know where that third party gets its data? If you don’t, you better find out fast and be immovable about violating privacy and ethics.

As consumers become wiser to phones listening to them and TVs too for data collection, trust will erode even further. The smart retailer will steer clear of these bad actors and make that known to their customers.

Paula Rosenblum
Noble Member
6 years ago

We are in a difficult situation, with the federal government demanding voter rolls from the states and way too much hype around AI (among many things). This does not make people feel warm and fuzzy about sharing their data.

I actually believe that the “pact” of exchanging privacy for relevancy is deteriorating. What shoppers are asking for is almost the impossible — give me relevancy and leave me alone. But that’s what they want.

Lyle Bunn (Ph.D. Hon)
Lyle Bunn (Ph.D. Hon)
6 years ago

We are entering this interesting time when data is not as personal as “happy birthday Lyle” but rather a more an anonymous-ized, concise composite of our background, lifestyle and experiences. We all accept the algorithm-determined notice that “customers also liked these items when they purchased what is in your cart,” but seldom think just how personalized this suggestive selling is. As phone companies, credit agencies, credit card and social media companies increasingly sell data that fuel a millisecond construction of a consumer profile, this type of anonymous personalization is the part of the iceberg consumers do not see. Privacy appears to exist while the B2C enterprise enjoys full advantage. We’ll increase accept that the brand knows us without presuming a first name relationship.

Shep Hyken
Active Member
6 years ago

If I truly trust the company I’m doing business with, and am willing to give them my information, then I expect them to respect that information — and that means they won’t abuse the privilege of having that information. The retailer must make a promise to the customer and continuously reinforce that promise with the right messaging and proof that they didn’t abuse the privilege. As for giving some (or more) control to the consumer, that is a great concept. Over time, they will give up some or all of that control back to the retailer, provided that the retailer doesn’t violate that trust. It’s all about trust!

Brandon Rael
Active Member
6 years ago

Now here is exactly the paradox we are dealing with in these times, where consumers have high expectations of personalized, real-time engaging relationships with retailers yet there are concerns about data privacy. We all willingly share a significant amount of data throughout our social networks (Facebook, Instagram, LinkedIn, etc.) and all of that data is freely leveraged by these social platforms in the form of enhanced advertising and promotions.

I am all for enhancing the shopping experience if the retailer or CPG firm “knows” all about the consumer through the form of customer insights, which are gathered via e-commerce, mobile apps and in-store. Perhaps the way to mitigate any concerns about sharing their data would be in the form of a greater transparency by the company about how customers’ data is used. Also by providing the controls and levers to let customers be in charge of their own privacy will enable a self-service mechanism, which will give consumers a sense of comfort.

Bottom-line, in the age of the consumer, we all expect a friction-less and seamless shopping experience, and data is the fuel that will enable that to happen.

Joan Treistman
Joan Treistman
Member
6 years ago

Until retailers subscribe to protecting their networks from hacking and involuntary exposure of consumer data, perceptions of confidentiality are just that. It’s expensive and time consuming for retailers to audit and maintain secure and impenetrable networks.

I get the discussion about uses of the data that are helpful to retailers and possibly consumers. But I can’t get over the fact that there are very few companies, retailers included, that have programs fully adhered to that keep data safe and secure.

No matter what retailers promise to help me feel better about sharing personal data, I feel vulnerable. Ultimately for me it’s a matter of potential rewards over probable risk.

Michael La Kier
Member
6 years ago

Given enough value, consumers will share. The issue is that brands and marketers take for granted that the value we offer is enough. For example, the first interaction on many retail apps is to share a ton of data, but it’s done before any value is given in return. And then if consumer data is shared, the expectation is that brands should be using it well rather than ignoring it. Bottom line: for consumers to become comfortable sharing more data, brands should become better at using it.

Larry Negrich
6 years ago

I’ll join your club if you show me what data you have on me. Transparency of data may be enlightening and beneficial to both the consumer and the retailer. Then the consumer could suggest corrections, point out inaccuracies and make the data more meaningful. With the consumer reviewer over their shoulder, a retailer may be even more exacting on what data they do keep in order to not be perceived as too personal. What better watchdog than the consumer? Now, are the retailers willing to make this level of transparency available?

Ricardo Belmar
Active Member
6 years ago

This is about comfort level for consumers. Consumers want relevancy from retailers that frankly can’t be provided without the use of personal information. However, consumers want to feel comfortable that their data is sufficiently protected. The problem for retailers lies in defining that appropriate level of security and the associated spend required. For some, it may not be attainable and may not justify the ROI for personalization.

Doug Garnett
Active Member
Reply to  Ricardo Belmar
6 years ago

The interesting question is: Perhaps they want relevancy, but even with all that data (like Amazon has), can it actually be delivered? Wouldn’t be the first time it turned out something appealing to consumers couldn’t actually be done.

My sense is this: Predicting relevancy is the realm of necromancers, not data. Because data is backward looking, it will always embed many errors. Also, behavioral data is known to have huge weakness in that we never know “why” someone made that choice. By not understanding the “why,” recommendations can never be relevant even a major part of the time. Here’s a post I wrote about the issue recently.

Ricardo Belmar
Active Member
Reply to  Doug Garnett
6 years ago

Excellent point Doug! I think part of this problem is self-inflicted — the way the industry uses the term “recommendations” in ways that imply true prediction. If Amazon could be 100% successful at predicting what the next book you’ll want to buy is based on your history, they wouldn’t need to show you a recommendation — it would be a predictive purchase and they could just ship it to you. Not sure that’s what consumers want either — they just want higher quality help making a purchasing choice.

Doug Garnett
Active Member
6 years ago

Marketer use of data has simply not been honest enough — and I don’t mean the egregious types of errors. Marketers have bought into a false theory of “relevance” … believing that THEY can choose what’s relevant to a consumer. Marketers thought they were being the good guys doing this — but looked at honestly this has led to degradation of the digital environment for the consumer.

Fundamentally, so-called “relevance” turns out only to mean that the consumer is relevant to the marketer — not that the marketer has the foresight to deliver something relevant to the consumer.

Even Amazon, the company with the most data and most sophistication with that data, is unable to offer relevant ideas with accuracy.

Marketers need to learn from data and develop reasonable targeting based on what they know of consumers. But we need to learn restraint and stop the mythology that we can, with data, choose for the consumer — that’s demeaning to consumers and it’s no wonder they’re not happy about it.

Adam Silverman
6 years ago

There is a “value exchange” happening here, where consumers share personal information in exchange for receiving a benefit. If the value exchange is fair, equal, and built on trust, consumers will share their information without hesitation. We have to realize that in order to gain convenience we must give up some privacy. When we don’t get that convenience — that value — then we become sensitive to privacy concerns. When was the last time you hesitated to use turn-by-turn navigation apps because you were concerned that Google/Apple would know your location?

Ralph Jacobson
Member
6 years ago

This has always been a little funny when you think about it. Take, for example, Apple, Google or Amazon. How much do those companies know about me already today? More than most of the closest people in my life, probably. Yet, if any of them directly asked if I wanted to share any info with them, I’d most assuredly say, “No.” So, the retailer needs to provide compelling benefits to sharing information to help ensure the capturing of relevant data. Just don’t be so blatant in the request.

Max Goldberg
6 years ago

What retailers should do vs. what they will do are very different. They should move to protect consumer data and be completely transparent about it, but there is too much money at stake and it would be costly to implement these systems. Look for consumers to be more aggressive in trying to protect their privacy, especially when retailers have security breeches.