Survey finds shoppers willing to share data if they get something in return
Deena M. Amato-McCoy
Despite privacy concerns, consumer will share data with companies if it saves them money or resolves customer service issues faster.
This was according to a recent study conducted by YouGov on behalf of customer experience company |7, which tapped 1,145 U.S. consumers.
Nearly half (43%) of consumers agreed that they would exchange personal data with companies to save money through personalized promotions, discounts or deals, followed by 39% looking for speedier issue resolution.
Off-target messages and privacy concerns proved to be the biggest deterrents for consumers receiving personalized marketing messages, the study reported.
Cost-savings are universally seen across all age groups as the top benefit to sharing personal data — information such as e-mail, age, location, interests, previous purchases, etc. — with millennials' willingness to share data for deals (49%) slightly outranking GenXers (44%) and baby boomers (38%).
Relevancy is the primary reason consumers embrace personalized marketing messages (26%). But off-target messages irritate consumers, with a similar percentage of respondents stating that irrelevancy was on par with invasion of privacy as a major cause of annoyance.
Twenty-nine percent (29%) said irrelevant messages were the leading reason they were bothered by personalized messages. Slightly more than that (32%) cited "it felt like an invasion of privacy" as the top reason they disliked a personalized message.
Privacy concerns ranked high among consumers, with 28% stating, "I don't like it when companies have my information when I don't explicitly provide it,” when asked about their overall feeling towards companies using personalized data.
Almost half of those surveyed (47%) had higher expectations about their customer experience as a direct result of sharing personal information with companies, with age proving to be a significant factor. The younger the respondent, the higher their expectations, with over half (59%) of millennials noting the more data they share the higher the expectations for a better customer experience, followed by GenX (47%) and baby boomers (38%).
While consumers are willing to share more personal data, they are particular about when and why. For example, 22% surveyed are open to sharing personal data after buying a product or service in exchange for an improved level of customer service in the future.
Likewise, 16% would share data post-purchase to receive ongoing information from the company, and 17% only want to share information if they encounter an issue that requires resolution. However, trust continues to be a deterrent to disclosing personal data, with 27% of consumers stating they would not share their information at any point.
When it comes to which industries make the best use of their information, insurance (50%) and financial services companies (48%) use of their personal data to deliver a better experience. These two industries outperformed retail, travel and hospitality, utilities and telecommunications in consumer perception, with the telecom industry receiving the lowest ranking (38%).
"If used correctly, consumer data can play a valuable role in improving the customer experience, but this information should be used wisely to avoid alienating customers," said Scott Horn, chief marketing officer, 7.
"The key to a great customer experience is dependent on companies' ability to understand a consumer's true intent,” he added. “If companies understand precisely what a customer is trying to do and where their interests lie, they can deliver a more personalized interaction that doesn't feel intrusive.”