Brand owners warned about new data sharing recession
Consumers are becoming increasingly sceptical about sharing their personal data with brands, while half of senior marketers do not know how to offer value in return, a factor which, according to a new study, has the potential to lead to a data sharing recession for many businesses.
So says new research from Rapp UK and the Foresight Foundation, which has led the agency to formulate a survival strategy, which, it claims, gives marketers the tools to buck the trend by encouraging data sharing and enhancing their brand's perceived value.
In the quantitative survey of 2,000 consumers and 100 marketers across seven different sectors (banking, mobile phones, fashion, beauty, hotels, airlines and automotive,) the research reveals 70% of consumers feel that no company has ever provided them with real value in exchange for their personal data. Furthermore, 40% of consumers feel sceptical about sharing their data and almost two-thirds feel 'out of control' and worried about sharing it.
Perhaps the most alarming statistic, according to the authors, is that 50% of the senior marketers surveyed did not know what to do to make the value they offer more effective in encouraging data sharing.
Rapp UK senior vice-president of strategy Shiona McDougall said: "With brands facing an uphill struggle to weave their way into people's lives, it is absolutely imperative that they do more than meet their customers' expectations: they must start offering more value in exchange for personal data. However, that doesn't mean just bribing consumers with points or discounts."
McDougall continued: "Brands need to place the data value exchange in real language for real people and design interactions that protect the consumer as well as deliver on the value levers of Choice, Control and Community. Above all, brands need to be more creative in meeting customer needs, which is especially important in the world of ad blockers and unsubscribers. Privacy by Design is absolutely critical if brands intend to survive the potential data sharing recession.
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