Consumers are becoming increasingly sceptical about sharing their information, whilst half of senior marketers don’t know how to offer value in return for consumers’ personal data. Coupled together, the two trends have the potential to lead to a data sharing recession for many businesses, according to new research from RAPP UK and the Foresight Foundation. The findings have enabled RAPP to formulate a survival strategy, which gives marketers the tools to buck the trend by encouraging data sharing and enhancing their brand’s perceived value.
In a 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 that 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 from the research is that 50% of the senior marketers surveyed didn’t know what to do to make the value they offer more effective in encouraging data sharing.
Surviving the Data Sharing Recession
Shiona McDougall, SVP, Strategy, RAPP UK comments: “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.”
RAPP has formulated a data sharing equation:
McDougall continues: “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.”
Under new General Data Protection Legislation, which comes into effect in May 2018, strict limits will exist on businesses that collect, use and share data from European citizens. Companies will face new requirements that compel them to rethink their approaches to customer privacy and implement new protections. The attitude ‘If I give you consent, this is what I gain’ will start to drive how consumers think about sharing and how they choose the brands they share with.