Consumers worldwide will share personal information to get better service. However, they are very discerning about how they share.
Today’s digital consumers are complicated and sometimes sceptical about how institutions use their data, according to a survey of consumers around the world commissioned by Infosys.
Brits feel comfortable sharing data with banks (74%) and retailers (69%); however, the research shows contrasting nuances. People say they want targeted ads yet are wary of sharing the information to enable this. The study shows consumers understand the benefits of sharing data but remain cautious of this: 39% globally describe data-mining as invasive, while also saying it is helpful (35%), convenient (33%) and time saving (32%).
The global research polled 5,000 digitally savvy consumers in five countries (including 1,000 in each of France, Germany and the United Kingdom) about how they trade private data in the retail, banking, and healthcare sectors. The study shows the key challenge facing business is to navigate the complex behaviours consumers display when sharing their personal information.
Key UK findings:
Retail
- To know me is to sell to me: Three-quarters of consumers worldwide believe retailers currently miss the mark in targeting them with ads on mobile apps, and 78% do not feel that online promotions or emails they receive resonate with their personal interests and needs.
- To really know me is to sell me even more: British consumers overwhelmingly agree (78%) that they would be more likely to purchase from a retailer again if they provided offers targeted to their interests, wants or needs, and 68% feel similarly if offered incentives based on location.
- Catch 22 for retailers? While in principle shoppers say they want to receive ads or promotions targeted to their interests, just 16% will share social media profile information. Lacking these details could make it difficult for retailers to deliver tailored digital offers.
Banking
- Security = Loyalty: 86% of respondents expect their bank to mine personal data to protect against fraud. It is such an important issue that just over three-quarters (77%) would even consider changing banks if a competitor offered assurances that their data and money would be safer.
- Digital communication conundrum: There is a communications challenge for banks: 60% of consumers want banks to communicate with them about their account or transaction information via alerts to mobile or smartphone; however, only 28% frequently share information on these devices.
- Are banks reassuring customers enough? Despite these clear concerns about security, more than a third of consumers (31%) still feel that their current bank or financial institution does not have a clear process for addressing issues concerning fraud.
“This study is a wake-up call to companies about the enormous untapped opportunity to gain greater access to data by clearly communicating ‘what’s in it for me’ to the customer. Our research shows that people will certainly share, though they’re very savvy about how they give up their personal information. Companies need to crack the code in mining data effectively to gain consumer trust and clearly articulate the benefit to their customers.” Stephen Pratt, Managing Partner, Worldwide Consulting and Systems Integration and Executive Council Member at Infosys.
Author: Jo Robinson
Published On: 31st Jul 2013 - Last modified: 22nd Mar 2017
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