Almost two-thirds (64%) of consumers admit to sharing personal data with brands without knowing what it will be used for, with this occurring for some either frequently (26%) or rarely (38%), according to a survey from Redpoint Global shared with Marketing Charts. Reasons given for doing so include trust that the data will be used to improve the customer experience (32%), a desire to receive discounts and promotions (30%), and it being required to browse a site (25%), according to the survey results.
However, few respondents trust that brands are transparent with how they use their data: in fact, just 1 in 4 (24.5%) of respondents feel brands are transparent in this way. By comparison, a larger 36.1% feel that brands aren’t transparent in their use of consumer data, though that figure includes a scant 3.2% who do not mind the lack of transparency.
That transparency can build trust, however. When asked to select factors for which brands can improve their trust, almost half (48%) said that transparency over data leaks and providing options can boost trust. Moreover, the leading response was for brands to easily allow consumers to delete data they have provided, with 54% saying this would improve their trust in brands. Only 1 in 4 said that having control over their data would not impact their trust in a brand.
Previous research has also highlighted the role that data privacy can have in brand trust. One study of CMOs found that their top priority for securing customers’ trust was to respect the data that their customers had voluntarily provided. Another survey of CMOs revealed that their top ways of building trust around data sharing were to promise not to sell customers’ information and to ask consumers to consent to the use of their data.
As for consumers themselves, research has indicated that the top reason they distrust brands when providing their personal information is due to brands asking for too much information. Interestingly, the use of inaccurate information in marketing was the least-cited reason for distrusting brands when providing their data.
Even so, this latest Redpoint Global research finds that the receipt of inaccurate information is widespread. Some 71% of respondents reported receiving mistargeted information from brands, including almost one-quarter (23.6%) who said they receive such information on a daily basis. About half (50.5%) of respondents overall said that this negatively impacts their customer experience with a brand.
In other findings from the survey:
- The most influential benefit that would entice consumers to share their data with a brand is compensation of some type, such as discounts, offers or perks.
- Almost half (48%) would stop doing business with a company if it gave away their personal data without permission, and another 32% share would use an alternative checkout method as a way of avoiding giving away their data if they knew their data was at risk of being shared with a third party.
- Only one-quarter (25.7%) feel that current data privacy regulations do a good job of protecting their personal data.
About the Data: The results are based on a June survey of 1,000 US adults (18+) conducted by Dynata Research.