13 / 08 / 2019
Take The Person Out Of Personal Data, UK Consumers Demand
SHOPPERS STILL DON’T TRUST BRANDS TO PROTECT THEIR PRIVATE DETAILS
Dublin, 13th, August 2019 – Consumer Trust – A new survey by Truata highlights that consumers are more worried than ever about the way their data is used and shared by companies. Our research reveals that nearly three-quarters (74%) of online consumers are nervous about their personal details being sold to third parties.
Even if consumers know that their data is only used by the brand they sign up with, it does little to reduce concerns. The Truata Customer State of Mind Survey discovered that 60% of consumers are uneasy with companies using their personal data for analytics.
Recent high-profile data leaks have also added to this negative perception of the way personal data is managed by brands. More than seven in ten (71%) internet users are worried that their personal data could be used to commit fraud against them if stolen in a data breach.
And this concern can have a big impact on brands. Only 17% of customers would trust a company with their personal data if that company was reported to have misused customer data. These results reflect recent concerns raised by data regulators at the ICO, who also found a significant lack of consumer trust in the data security of organisations.
But our survey shows confidence rises when consumers know that their data has been anonymised, removing all identifiable information from data sets. More than half (55%) of customers born after 1979 say they would be willing to share more of their personal data with companies, on the condition of total anonymity. But to achieve this, anonymisation needs to be implemented correctly. Recent academic research, has demonstrated how easy it is to obtain personal details from datasets that have only been de-identified. For total security, anonymisation needs to be conducted independently, by experts using cutting-edge techniques.
This clarity is critical for retailers to inspire consumer trust. Nearly two-thirds (65%) of online shoppers are more likely to be loyal to a company if they trust them to use their data properly, while almost half (48%) say they would actually spend more money with a company if they feel their data is protected. This is most pronounced with younger customers – more than half (54%) of those under 26 years old would spend more money with companies they trust with their personal data.
“This erosion of consumer trust in businesses, brands and institutions needs tackling now. Reputational damage can happen in an instant but will take significant time and resource to recover from,” comments Felix Marx, CEO, Truata.
“Data can be the driver of growth and innovation. But we need to strike a balance between data utility and customer privacy. The future belongs to brands which operate with integrity and find a way to unlock the potential of their data without compromising privacy.”
The research was conducted by Arlington Research with a respondent base of 2000 UK adults aged 18+, with nationally representative quotas achieved for gender, age and region (+/- 2%). Research fieldwork was completed between 4th – 7th July 2019.
Truata enables its clients to derive the maximum value from their data assets while complying with the highest data protection standards. Offering its clients a service to independently anonymise data, enabling them to conduct privacy-enhanced analytics to drive business growth, uphold customer trust and protect brand reputation. Truata is based in Dublin, Ireland. For more information visit truata.com.
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