Consumers Question Benefit of Sharing Personal Info With Marketers

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September 18, 2012 -- Research performed for LoyaltyOne, a global provider of relationship marketing services, finds 78% of North American consumers believe their “data is an asset to companies” but don't feel they're “receiving a benefit from sharing personal information with marketers," up from 74% in 2011.

Findings from the study, which surveyed a cross-section of 1,000 U.S. and 1,000 Canadian consumers to test attitudes about personal data collection and use by marketers:
 

• Less than half (44%) of respondents somewhat or strongly agree with the statement that companies use their personal data "so they can better serve me," a drop of 8 percentage points since 2011.

 

• Those who would share more personal data if it meant receiving relevant product and service offers dipped from 67% to 63%, possibly indicating “a sense of disappointment among consumers that providing personal information does not result in a suitable value in return.”

 

• When it comes to tracking:
   

• 35% find it acceptable for an online retailer to use cookies to track their online behavior.
• 32% are accepting of tracking ads on unrelated websites.
• Only 15% of respondents were OK with being tracked by mobile. Yet, more than a quarter of respondents would allow access to their whereabouts for a chance to win an iPad and 57% would allow location-based tracking for cash.

 

• The research shows that only 42% of respondents trust businesses. Nearly 75% of those consumers who do trust businesses are willing to provide more personal information in exchange for relevant offers and communications. Of those who don’t trust businesses, only about half were willing to share their data.

 

• Canadians are less bothered by the quantity of data gathered than they are with the sensitive quality of it and how it is being used. For example, fewer Canadians than Americans are concerned about how much personal information is being held by others – 82% v. 87%.

 
States LoyaltyOne: “The cycle is clear. Consumers understand the implications of participating in the data exchange, and for the most part, they are willing to play. But there is mounting intolerance for organizations that appear to take advantage of data for the company’s own benefit.” 

Bryan Pearson, President of LoyaltyOne adds, “There’s a fine line between demonstrating you understand a customer and making them uncomfortable with the level of information you have about them.”
 
 
Methodology:  The report is based on the completed responses of 1,000 U.S. and 1,000 Canadian consumers to an online 20-minute questionnaire survey conducted June 4-18, 2012. The survey is a representative, true random sampling of U.S. and Canadian consumers. Weights were applied by population size to create a blended U.S.-Canadian total. Survey respondents included consumers 18 years of age and older who are primary or joint decision-makers regarding household purchases. Statistical significance is calculated at the 95% confidence level.
 
Source: LoyaltyOne, Customer Data: Privacy, Profit and the New Paradigm - A Report on U.S. and Canadian Consumer Attitudes, accessed September 25, 2012.