A new study of over 2,000 US adults and 500 marketing executives has found that data privacy is now a business issue.
The research, conducted by customer engagement platform, Braze finds reports that 84% of adults have decided against engaging with a company because it needed too much of their personal information, and three in five consumers have gone so far as to delete an app from their phone for that same reason.
“Respect for the consumer must be at the heart of data management. People want to trust that there will be an exchange of value for sharing their data, and that there will be no inappropriate use,” said Bill Magnuson, co-founder and CEO at Braze.
“Brands that listen closely to their customers’ behavior while maintaining rigorous data-privacy controls will understand how to provide the value each individual expects.”
Braze’s study, conducted by Wakefield Research, reveals perspectives on a number of topics related to data privacy, including: consumer and marketer POVs on the new landscape; the business impact of new data laws; the government’s role in regulation; and how companies and parents can best protect children’s privacy. Key findings outlined in the Braze Data Privacy Report include:
Americans have an appetite for national regulation and guidance on data privacy
Consumers would rather not leave it to businesses to set the standards for their collection and use of online personal data and nearly all (95%) U.S. adults believe that there is more that privacy laws ought to do to protect their personal data.
A majority (64%) of U.S. adults think the government should be most responsible for driving changes to data privacy policies, with more than half (52%) reporting the federal government should handle it. At the very least, both marketers and consumers agree that there should be a national conversation on this topic: 72% of adults and 72% of marketing execs agree privacy should be a primary concern of presidential candidates in 2020.
Moreover, there is even greater interest in discussion of protecting the data of society’s most vulnerable citizens – children
But they’re not waiting for lawmakers to take action. To counter what they consider data privacy intrusions, an overwhelming majority (84%) of adults have decided against engaging with a company because it needed too much of their personal information.
For instance, nearly three in five (59%) have deleted an app from their phone, followed by stopping an installation halfway through (49%) and using an alternative email address (34%). What’s more: Parents are even more vigilant. More parents (65%) than non-parents (54%) have taken the ultimate step of deleting an app from their phone.
Marketing executives are aware of consumers’ desire for more control of their information and are reassessing their data privacy strategy
In fact, nearly all (94%) marketing executives see business advantages in applying stricter data privacy rules before they become mandatory. The greatest advantages of doing so are improved brand perception (46%), higher market valuation (46%), industry leadership (45%), cost savings in the long run (43%), and being early-to-market (39%).
Transparency and consent are key for consumers and marketers
Marketing executives and consumers are virtually on the same page when it comes to data privacy: nearly all (99%) marketing executives agree that companies should tell consumers how their data is used, compared to 94% of adults who expect companies to tell them about their use of data.
One path forward could include compensation for data. A vast majority (71%) of adults would accept some form of compensation for their personal data, with younger generations leading that charge. More Millennials (83%) and Gen Xers (75%) would accept compensation for their personal data than Baby Boomers (58%).
While cash is king as far as compensation, consumers also value the conveniences and services they can take advantage of through their online experiences. More than four in five (84%) U.S. adults would share personal information online for websites or apps if it were required.
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