Consumers are Now More Concerned with Data Privacy, Study Reveals

In stark contrast with the drop in consumer confidence last year, consumer loyalty and trust is seemingly making a comeback, according to a recent study done by fast.MAP.

According to the research, which was collated last September, marketers and companies have regained trust on sharing personal information, especially in transacting online, with more than 80 percent of users saying that they are willing to provide personal information such as their name and address in online transactions. This is a remarkable improvement when compared with the 50 percent approval rating recorded in the previous year.

However, this surge in consumer loyalty and trust to brands comes at a hefty price – more and more customers are wary about data breaches and privacy hazards, and will only give out their personal information when they think it is essential to the transaction.

Consumers are now more concerned about giving out personal data that could possibly be used for nefarious marketing activities, and they are now more familiar about which information should be given out on particular instances.

For example, the study revealed that over half of consumers are willing to give their credit card details when they shop online, as they know that it is essential to complete the transaction.

However, when they know that providing personal information is more of an option than a requirement, such as when joining online groups and forums. According to the fast.MAP study, less than 2 percent of the respondents are willing to provide their personal information such as credit card details when requesting for samples, inquiries and price quotations.

Unlike before, consumer loyalty and trust has become more difficult to earn. More and more consumers are demanding transparency on corporate privacy policies, with most of them closely scrutinising marketing strategies that could potentially jeopardize their personal data.

Though more consumers are willing to provide private information, it is only limited to three essential pieces of information: name, email, and postal address. When companies ask more than the said info, consumers become suspicious and are not too willing to cooperate.

Such information may spring from a related data in the study, which reveals that more consumers this year have reported that businesses have compromised the personal details that they provided, from 21 percent in 2011 to 23 percent this year.

The recent data on consumer behaviour is a strong signal for companies to review their privacy policies and be more responsible on the handling and collection of consumer information. At a time when more people are wary of fraud and data manipulation, companies should focus on how to retain or regain consumer loyalty and trust, rather than engage in activities that could collect more data. New plans and strategies should be drawn to secure consumer data and become more transparent when they deal with consumers.

To regain consumer loyalty, businesses should take time to explain to consumers why they are collecting such data – in the simplest of terms – and assure them of the safety of their identity. They should also acknowledge that it is their responsibility to report any untoward incidents that may lead to data breaches.

As more consumers become concerned with data privacy, it is high time for businesses to be more proactive in protecting consumer data.

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