How data privacy helps the bottom line

Communicate the benefits of data sharing to consumers to help the bottom line   An analysis by Denise Dahlhoff, Ph.D., Senior Researcher, Consumer Research

 

 

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More so than their global peers, US consumers believe the use of personal data mostly benefits companies rather than themselves. Three-quarters believe this is the case. And only a quarter think corporate data use has improved their lives. Almost 60 percent of US consumers value data privacy over data-enabled personalization. While personalized suggestions for purchases are often highlighted as an incentive to share data, such personalization seems to be a benefit few US consumers appreciate. This might partly be an awareness issue. To increase awareness and appreciation of personalization, companies could indicate which offerings, messages, and experiences are customized and give the option of generic content to demonstrate the difference. They should also point out the enhanced convenience and services enabled by personal data. In addition, highlighting free offerings as a benefit of sharing data may be particularly valuable since it is the benefit that US consumers are least willing to give up—nearly 40 percent oppose losing free content as a trade-off for greater privacy. For more findings from this research, please refer to the executive summary and slide deck (accessible after creating/logging in with a free account).