A new study from Genesys has found that the vast majority of UK consumers (92%) say they are concerned about how companies use their data.
Despite most shoppers saying they are concerned about data usage, the study found that over a half (55%) of UK consumers will continue to use a company that has leaked their personal data by accident.
The reason? Over a quarter (26%) say they will reluctantly carry on doing business with a company despite a breach if they feel there isn’t a convenient alternative.
When it comes to penalties to the business itself, more than a third (34%) reported that reparations to those affected are the most appropriate enforceable action.
Slightly fewer, 32%, believe that a government fine proportionate to the size of the data breach, such as those issued under GDPR, would be a suitable consequence.
UK Consumers Happy to Share Data if It Means Better Deals and Freebies
The survey also found that 45% of UK consumers are more inclined to share their personal data with businesses if they are likely to get discounts or freebies.
These shoppers are happy to sign up to a club card even if they know their data will be shared with third parties. This is particularly true of Gen Zers (55%) and Millennials (50%), who demonstrated in the survey they are willing to give up their data to receive a better deal.
However, when it comes to privacy, 40% will not share their personal details over privacy concerns, even if it means missing out on discounts and longer interactions.
This number is even higher with Baby Boomers, with over half (51%) not willing to share their personal details over privacy concerns.
According to the survey, saving time is not a motivating benefit for most consumers, with only 15% of UK shoppers willing to trade speed for privacy.
However, Millennials (21%) are the most likely age group to divulge their personal details if they feel that their interactions with brands will be more efficient and convenient.
Financial Compensation Seen as Key to Fixing Relationships
More than a half (54%) believe monetary compensation is the best way for a company to show it understands the annoyance or risk caused by a breach or misuse of personal data.
The UK result is significantly higher than the 44% average across the USA, Germany, Japan, Australia and New Zealand, which were also included in the survey.
More than a quarter of UK consumers (28%) believe a £80 gift card would be adequate compensation – more than the six-country average for this option (19%).
Only a slightly smaller percentage in the UK (27%) view a public apology from a company CEO clearly acknowledging fault and outlining steps to avoid recurrence of the data breach as a suitable form of compensation.
“Businesses should always ensure that customers’ data is secure, no matter where it is generated,” says Shahzad Ahmad, vice president of cloud competence centre and data privacy at Genesys.
“Companies are increasingly using personal data and AI-based technologies to deliver tailored experiences to consumers.”
“However, they need to take all reasonable steps to follow regulatory compliance with data privacy.”
“Any failure in doing so will not only result in damage to the brand, but will result in financial penalties and loss of customer loyalty.”
To find out more about Genesys, visit their website.