The fear of Big Brother
Only 1% of consumers trust advertisers with their data. This finding isn’t inherently all that surprising.
Almost since the inception of the internet, at least for the last 10-15 years, web users have feared handing over their data.
Turns out, people can be bought
More surprisingly, however, is that 27% of consumers would be prepared to sell their data. Of those, 41% believe their data is worth more than £500 per year. This finding comes from a new report, Value Exchange from Data Exchange, which highlights some key attitudes consumers have towards data exchange and the way brands handle that data.
Specifically, the report shows the importance of addressing the customer’s definition of value, and the need to transition away from the incentive-based system which has been the norm for the last 20 years. As consumers become increasingly data-savvy and data-wary, brands must evolve these ongoing relationships.
Capitalizing on your privacy
According to the report, customers are now asking ‘What’s in it for us?’ when it comes to brands using their data.
Once a customer has provided their data, they expect some value in return. The meaning of value is different for different customers, but customizability and ongoing relevancy are key to building long-term relationships.
What’s in it for me?
Consumers have stated across many different pieces of research that they don’t mind offers as long as they are relevant. Of those surveyed, 62% of consumers expressed interest in receiving special offers nearby, such as two-for-one deals, and 59% are interested in free giveaways in local places.
Location-based advertising suggests that, in some cases, the need for convenience outweighs the fear of data misuse.
It also points to the importance of personalization for consumers. This substantiates a long-known fact among marketers – keeping offers relevant should be a top priority.
The underlying implication of these findings is the growing acceptance for the way in which data is free exchanged and applied. Future brand opportunities will increase as consumers become less cautious about what happens to their data. If brands can continue to adapt the value they bring to consumers, they will be able to continue gaining valuable insights from the data exchange.