According to a study released today by KPMG International, consumers are more anxious, and although they are embracing new technology, they are more aware of the risks and benefits of handing over their data to businesses. The study includes a survey of 25,000 consumers in the UK, US, UAE, France, Brazil, Canada, China and India.
The study, published by KPMG’s Global Consumer Insights program as part of the 2018 Me, my life, my wallet report, shows that almost half (47 percent) of consumers feel more anxious than last year and the same number feel more anxious than five years ago. Despite increasing anxiety and recent data scandals, three-quarters (75 percent) of consumers are still willing to provide businesses with their data.
The survey shows that a quarter of consumers (24 percent) would not trade their data; however, millennial consumers are more likely (21 percent) than their baby boomer counterparts (5 percent) to trade their data for better customer experience and personalization. Likewise a fifth (19 percent) of millennial consumers would trade their data for better products and services, versus just 8 percent of baby boomers. The study shows that younger consumers are just as anxious and concerned about identify fraud, however they are more likely to see the benefits of sharing data.
While the majority of consumers are willing to provide businesses with data, half (51 percent) of consumers are anxious about identity theft, and the majority (72 percent) don’t trust anyone with their social media data. In fact, additional research* highlights that 42 percent of consumers have updated their social media privacy settings in the last 12 months.
The findings suggest that businesses can earn the loyalty of consumers by following four rules for data transparency:
- Be open about why you’re asking for certain types of data.
- Be clear about how you will protect it.
- Be honest about whether it is sold or shared outside the organization.
- Don’t be selfish about the value of data – reward consumers for sharing their data with you.
Consumers are increasingly aware of the value of their data. The research* shows that 85 percent of consumers want firms to protect their information without having to ask, and 77 percent are against their data being sold on. Businesses that follow these rules are likely to fare better than the competition.
Commenting on the results, Julio J. Hernandez, Global Head of Customer Advisory, said:
“Consumers are anxious, with younger generations feeling it the most. They like new technology but are concerned about handing over personal data, and what that could mean for their privacy and security. Our research demonstrates that organizations should be aware of the heightened awareness people have about the value of their data; they want to feel that they are in control at every stage of the business relationship.
“Many companies haven’t yet fully grasped the concerns consumers have about sharing their data, or how this could affect consumer loyalty. Yet more and more businesses are looking to monetize the data they hold – whether that’s what we put in our shopping basket, how many times a week we exercise, or what we choose to watch. Consumers are more aware of the value of their data, and businesses need to be responding to this new, tech-driven, data-savvy type of customer. The smartest businesses I work with understand this new environment and are focused on earning their customers’ trust for the way they hold and use their data.” – KPMG