Global consumers care more about data privacy, study finds

On the eve of the first anniversary of the European Union’s (EU) General Data Protection Regulation (GDPR), a new survey by SAI Global, reveals a growing trust deficit across global consumer groups driven by data privacy, traceability and ethical and environmental stewardship doubts.

Conducted by brand intelligence research firm Survata, the annual Reputation Trust Index report demonstrates that consumers are now beginning to rethink the value exchange terms between themselves and the brands they choose to do business with causing companies to go on a reputation offensive.

Companies must begin thinking in terms of transparency-by-design to bridge the gap and safeguard brand resilience through trust-building. Companies can’t simply say ‘trust us’ when people are demanding ‘show us’.

Key survey findings include:

  • 82% of consumers research companies before making purchases
  • 65% of consumers ranked data privacy as the most important corporate social responsibility (CSR) value
  • 36% of consumers ranked a Financial Service data breach as the most pressing company crisis
  • 64% of consumers would spend more to save the environment
  • 60% of consumers demand public responsibility more so than financial repercussions

Control, trust and transparency form the foundational basis for a healthy data economy. Of those surveyed for the Trust Index, 65% viewed data privacy as the most important attribute when considering a company’s trustworthiness, a score that indicates the rise in the understanding of global consumers rights and mechanisms that regulations like the GDPR have made available to strengthen their ability to manage and protect their data.

Peter Granat, CEO at SAI Global, said:

“GDPR, and a steady beat of high-profile data breaches, has shifted the way consumers think about their data and its value in our digital economy. The balance of power has tipped to consumers as reputations now hinge on trust and transparency credentials over cost.”

According to findings from SAI Global’s Trust Index, one of the fundamental ways a company can prove its data collection and privacy processes “trustworthy” is by being transparent.

Among those surveyed, 75% would accept a lower quality product for increased data protection. They would also pay more for a product or service if data privacy was guaranteed.

The annual survey also found no real differences in the value systems across generations. Among those surveyed, Millennials, GenXers and Baby Boomers all agreed that businesses must protect their privacy in order to gain their trust.

In the inaugural Trust Index report in 2017, SAI Global asked consumers to rank the more important attributes of trust and over half of consumers surveyed (56%) cited how the business responds in a crisis as paramount. Fast forward to 2019 and 60% of those surveyed now wanted companies to take public accountability and 24% want to see the company pay a fine.

“Businesses must have the proper controls in place for transparency across data privacy, supply chains and ethical stewardship or they risk losing consumer trust,” said Granat.

“More than just mitigating risk, businesses must thoroughly integrate and align reputational resilience into their business strategy. By doing so they can gain a competitive advantage by becoming trusted providers in terms of safety, security, reliability, privacy, and data ethics.”

 


Join our free-to-attend digital event, Last Thursday in Privacy, addressing data protection, privacy and security challenges including working from home, COVID-19, global regulations and more. Visit https://digital.privsec.info/.

We have been awarded the number 1 GDPR Blog in 2019 by Feedspot.