SDL: Marketing Data and Consumer Privacy: What Your Customers REALLY Think

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February 26, 2014 Market Survey Marketing Data and Consumer Privacy: What Y our Customers REALLY Think Overview Big data is a big story in the marketing world: Marketers now have access to a wide range of consumer insights that they couldn’t access even ve years ago. In just ve years, the scope of consumer insights that marketers are able to access has evolved , by way of comparison, from a small pair of eld binoculars, to the Hubble telescope. However , with this eye-in-the-sk y, limitless availability of insights, there comes an unprecedent ed threat to consumer privacy – not least from the perspective of the consumer. And it comes as little surprise that people are guarded about sharing their data. Analytics Social Documentation eCommerce Language Campaigns Web Contents I’m a Marketer. Trust me. Consumers Aren’t Using Privacy Features  TRUST: It’s the name of the game Conclusion Methodology Infographic Demographics

description

SDL Market Survey: "Brands have quite a challenge on their hands when it comesto gaining consumers’ trust regarding personal data. SDL’s new research shows that consumers worry about how marketers use their personal data. In fact, 62 percent of global survey respondents said they worry about personal information being used for marketing. In the United States, 65 percent of respondents worry compared with 59 percent in the United Kingdom and 64 percent in Australia. These results suggest a culture of resistance to sharingsuch data online."

Transcript of SDL: Marketing Data and Consumer Privacy: What Your Customers REALLY Think

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    February 26, 2014

    Market Survey

    Marketing Data and Consumer Privacy:

    What Your Customers REALLY Think

    Overview

    Big data is a big story in the marketing world: Marketers now have access to a wide range of consumer insights

    that they couldnt access even five years ago.

    In just five years, the scope of consumer insights that marketers are able to access has evolved, by way of

    comparison, from a small pair of field binoculars, to the Hubble telescope. However, with this eye-in-the-sky,limitless availability of insights, there comes an unprecedented threat to consumer privacy not least from the

    perspective of the consumer. And it comes as little surprise that people are guarded about sharing their data.

    AnalyticsSocial

    DocumentationeCommerce

    LanguageCampaigns

    Web

    Contents

    Im a Marketer. Trust me.

    Consumers Arent Using Privacy Features

    TRUST: Its the name of the game

    Conclusion

    Methodology

    Infographic

    Demographics

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    Market Survey Marketing Data and Consumer Privacy: What Your Customers REALLY Think 2

    Executive summaryAs marketers look to connect the dots between sales and offers,

    online and offline, they need to remember that big data is really

    about people collective and individual behaviors, families, homes

    and lifestyles.

    This report is the latest in SDLs series of original research to look at

    how a newly-empowered consumer is fundamentally changing

    industries and brands. The goal in our original research is to

    uncover this consumers behaviors and expectations as they relate

    specifically to individual industries, and more importantly, open up

    insights on how brands can optimize their customer experience to

    increase engagement, revenues and loyalty.

    We surveyed more than 4,000 consumers in the United States,

    United Kingdom and Australia. We uncovered their thoughts and

    insights about how marketers use data, how they protect consumer

    privacy, and how consumers perceive the use of their personal

    information.

    In this report youll find insights including the following:

    Consumers are worried about marketers using their personal

    data.

    Marketers need to be transparent about how they use data.

    Smartphone and WiFi technology may help track behaviors, but

    consumers want to know the benefits of why they are being

    tracked.

    When consumers understand the value and see the incentive,they are willing to exchange data.

    Social media and big data still remain an enigma.

    We believe youll find this report actionable and that you will be

    able to apply the perspectives we provide. As always, we welcome

    your feedback on what marketing trends we can uncover for you in

    the future.

    Its not just data; its

    personal; marketers need to

    exercise respect for privacy

    and use caution with

    consumers data if they ever

    hope to retain consumer

    trust.

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    Im a Marketer. Trust me.Brands have quite a challenge on their hands when it comes

    to gaining consumers trust regarding personal data. SDLs new

    research shows that consumers worry about how marketers use

    their personal data. In fact, 62 percent of global survey respondents

    said they worry about personal information being used for

    marketing. In the United States, 65 percent of respondents worry

    compared with 59 percent in the United Kingdom and 64 percent

    in Australia. These results suggest a culture of resistance to sharing

    such data online. Reasons for consumers worry include the fear of

    the unknown what is going to happen to all that personal data?

    Given the high profile media stories about identity theft, data

    breaches and privacy issues with large, trusted companies, as well

    as all of the reports regarding government agencies tracking data,

    consumers are more aware of data and privacy issues than ever

    before.

    This media coverage is potentially fueling a backlash against

    brands that want to provide relevant offers and promotions to

    their customers. Brands have the opportunity to be part of the

    conversation by being transparent in not only how the data is

    collected, but also how the data is used. Brands need to seize the

    opportunity to communicate with their customers proactively to

    reduce the risk of damaging trust in the brand.

    Its also worth noting, as one might expect, that older consumers

    are more likely to worry about data and privacy issues than

    younger consumers. In the United States, 59 percent of consumers

    between ages 18 and 29 worry about data privacy compared with

    71 percent of consumers between ages 45 and 60. Likewise, in the

    United Kingdom, only 48 percent of consumers between the ages

    of 18 and 24 worry, compared with 63 percent between the ages

    of 45 and 54. The numbers are closer in Australia with 60 percent of

    younger (18-24 years old) consumers worry about data and privacy,

    compared with 66 percent of older consumers (45-54 years old).

    Because consumers worry about how data is being used they are

    relying on consumer protection agencies to monitor how brands

    use their personal data. In the U.S. and the U.K., many consumer

    protection groups focus on regulating the terms of bank loans,

    credit card and other financial transactions, leaving consumer data

    relatively unprotected.

    In Australia, 80 percent of respondents expect consumer protection

    groups to monitor how brands use personal data. This might be a

    direct result of the Australian National Privacy Principles regulation

    that controls how businesses must handle personal data.

    Global

    62%

    US

    65%

    UK

    59%

    AU

    64%

    Respondents are worried about personal info

    being used for marketing

    SDLs research discovered that nearly three-

    quarters of global respondents expect

    consumer protection groups to monitor

    data usage by brands.

    Global

    74%

    US

    71%

    UK

    73%

    AU

    80%

    74% of respondents expect consumer

    protection groups to monitor how brands use

    personal data

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    Consumers Arent Using

    Privacy FeaturesDo Not Track technology lets users opt out of tracking by

    websites, including analytics services, advertising networks, and

    social platforms. At present few of these third parties offer a

    reliable tracking opt-out, and tools for blocking them are neither

    user-friendly nor comprehensive. Much like the popular Do Not

    Callregistry in the USA, Do Not Trackprovides users with a single,

    simple, persistent choice to opt-out of third-party web tracking.

    SDL research suggests that while consumers are worried about

    how their personal data is being used, they arent opting out

    of website tracking. In fact, nearly three-quarters of global

    respondents (72 percent) rarely or never use Do Not Track

    features. This could be a reflection of the low adoption rate of the

    technology overall. In addition, consumers may not realize this

    technology is even available to them.

    When examining the relationship between the consumer and

    tracking behaviors and purchases, some brands and retailers are

    looking to incorporate the use of mobile technology as well. A few

    well-known retailers have explored using smartphone and WiFi

    technology to monitor a consumers behavior in a physical store.

    Marketers are looking to learn more about merchandise layout

    in the store and other physical attributes that are a challenge

    to understand. While this use of technology is still in its infancy,

    marketers looking to deploy it must help consumers understand

    why its being used and how it can benefit them.

    SDL research also discovered that retailers and brands are

    not showing consumers the benefit of tracking behavior and

    purchases. More than half of all global respondents dont prefer

    when stores keep track of purchases to help give promotions and

    discounts that match preferences. This suggests that marketers

    arent using this information in a manner that is helpful and relevant

    to the consumer. Marketers need to improve their approach and

    ensure that compelling, meaningful promotions are offered to the

    correct consumer segment.

    Global

    72%

    US

    71%

    UK

    72%

    AU

    72%

    Respondents rarely or never use Do not

    Track or Incognito features

    Of those that have a smartphone, 76% of

    global respondents arent comfortable with

    retailers tracking in-store movements thru

    smartphone and WiFi.

    Global

    76%

    US

    82%

    UK

    74%

    AU

    76%

    Of those consumers who have a smartphone,76% of global respondents arent comfortable

    with retailers tracking instore movements

    through smartphone and WiFi - simply

    because they are not aware as to WHY they are

    being tracked

    https://www.donotcall.gov/default.aspxhttps://www.donotcall.gov/default.aspxhttp://localhost/var/www/apps/conversion/tmp/scratch_1/donottrack.ushttp://localhost/var/www/apps/conversion/tmp/scratch_1/donottrack.ushttps://www.donotcall.gov/default.aspxhttps://www.donotcall.gov/default.aspx
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    In addition, SDL research discovered that consumers rarely read

    a websites privacy policy before making a purchase. Nearly two-

    thirds (65 percent) of global respondents either rarely or never read

    a websites privacy policy before making a purchase. Given the

    length of privacy policies (and the legalese) that they are written

    in, many consumers have given up trying to make sense of the

    complex policies. Again, consumers trust the brand to respectprivacy and protect data. Brands need to protect this trust and

    continue to communicate how data is collected, stored and used.

    However, in Australia, 44 percent always or often read it. Australias

    behavior may be an indication of the age of the ecommerce

    industry in the region. Given geographic isolation and high online

    shipping costs, many brands are just beginning to navigate the

    ecommerce process.

    While consumers are concerned about their personal data being

    used by marketers, they arent as concerned about protecting theircredit card information when shopping online. Nearly 60 percent of

    global respondents dont use a specific card or bank account that is

    only for online purchases.

    This shows that consumers trust brands to offer secure checkout

    process and to safely use their credit card information. In Australia,

    53 percent of respondents do use a specific card. Its suggested

    that the rate is higher in Australia because the digital economy is

    younger there than it is in the United States and United Kingdom.

    Global

    55%

    US

    49%

    UK

    49%

    AU

    51%

    Respondents dont prefer when stores andbrands keep track of purchases to help give

    promos that match preferences

    Global

    65%

    US

    63%

    UK

    70%

    AU

    56%

    Respondents rarely or never read a websites

    privacy policy before making a purchase

    Global

    58%

    US

    59%

    UK

    63%

    AU

    47%

    Respondents dont use a specific card or bank

    account that is only for online purchases

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    TRUST: Its the name of the

    gameSDL research revealed that consumers reward trusted brands

    with personal data. Nearly 80 percent of global respondents are

    more likely to provide personal information to a trusted brand

    a brand they have purchased from before. As an example of a

    trusted advisor, retailer Amazon.com has earned consumer trust

    by fostering relationships with consumers by helping them make

    decisions through recommendations of items based on past

    purchases, user reviews and ratings and suggested complementary

    purchases. Amazon consumers also have several choices for

    building a personal bond with the company, including creating

    user profiles, writing reviews and adding products to wish lists.

    Brands that use digital marketing activities must understand

    consumer views on data privacy, including what they consider

    private and what personal information consumers are willing

    to exchange with a brand. Consumers own the power in the

    relationship. They have the ability to choose what information they

    share so brands must offer compelling reasons to share this data.

    This is another wake-up call for marketers. Consumers arent seeing

    compelling reasons to share their information; they expect to

    receive a positive customer experience regardless of whether a

    brand has their personal information. Consumers expectations

    are high and brands need to leverage whatever information they

    have about the consumer to show them a superior experience that

    builds trust and loyalty.

    This is not to say that consumers dont want to share ANY

    information with brands and retailers. In fact, consumers find value

    in sharing personalized information in exchange for information

    that is relevant and useful to their daily lives.

    Consumers are willing to participate in a transparent exchange of

    their personal data with brands. Of the items that consumers are

    willing to share, gender, age and income top the list. However,

    name of spouse, lists of family and friends and Social Security

    numbers are items that consumers wont share with brands. The

    trick is to learn what data your customers are willing to share and

    then act accordingly.

    While consumers are choosing which

    brands and companies to do business

    with, 57 percent of global respondents

    said they dont choose to do business with

    brands and companies that use personal

    information to make their experience better.

    Global

    79%

    US

    80%

    UK

    75%

    AU

    87%

    Respondents are more likely to provide

    personal information to a trusted brand

    Global

    57%

    US

    58%

    UK

    60%

    AU

    52%

    Respondents dont choose to do business

    with brands/companies that use personal info

    to make experience better

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    In establishing that trust, brands must help consumers understand

    what they are receiving in exchange for their personal information.

    Nearly half of global respondents would give up personalinformation for a loyalty program.

    When marketers are clear about how the information is being used,

    which helps build trust. Likewise, consumers can choose how to

    participate when they know all of the facts.

    Global

    49%

    US

    50%

    UK

    45%

    AU

    54%

    Respondents would give up personal info to

    a brand for loyalty programs

    Its worth noting that in the United

    Kingdom, nearly one-third of respondents

    said that they wouldnt share any of the

    information with brands.

    Of the information that U.S.

    respondents would share with brands/

    stores to receive personalized offers

    Gender 62%

    US

    Hobbies 52%

    MaritalStatus 43%

    Of the information that U.K.

    respondents would share with brands/

    stores to receive personalized offers

    UK

    Date of

    Birth38%

    Gender 37%

    43%Marital

    Status

    Of the information that Australian

    respondents would share with brands/

    stores to receive personalized offers

    Gender 64%

    AU

    Date of

    Birth52%

    MaritalStatus 52%

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    And brands need to offer more than just free products and services.

    Many consumers feel like there is no such thing as free they

    assume there must be a catch. SDL research saw that only 41

    percent of global respondents would give up personal information

    for free products and services. Marketers should understand that

    sweepstakes, give-aways and free promotions arent great for

    consumers who arent motivated by free things. Marketers canbe more effective and save marketing budgets by focusing on

    building that trust. In return, consumers will be more attached and

    loyal to a brand.

    In addition to sharing information directly with a brand, consumers

    now share personal information on social networks and through

    word of mouth. Marketers are looking to leverage this online

    landscape to effectively reach their customers. However, marketers

    should realize that consumers arent necessarily sharing more

    information through social media that they are through traditionalmarketing programs.

    Of those who use social media, 55 percent of global respondents

    dont share more information about themselves on social media

    than share with brands or stores. Brands arent making inroads in

    social media. Consumers arent accepting brands as part of their

    personal network. Once again, brands need to offer a compelling

    reason to share personal information.

    Global

    41%

    US

    44%

    UK

    35%

    AU

    50%

    Respondents would give up personal

    information for free products and services

    Global

    55%

    US

    55%

    UK

    55%

    AU

    57%

    Of those who use social media, respondents

    dont share more information about

    themselves on social media than share with

    brands or stores

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    This SDL research illuminates that unless

    brands are trusted and provide consumers

    with the way to control how their data is

    used, they will not have a valuable role in

    the digital ecosystem.

    Conclusion

    As marketers, you understand the importance of using customer

    insights to offer more relevant promotions and discounts to your

    customers. But now, you also understand that customers want to

    protect their data.

    As you use customer data for your marketing needs,

    consider the following:

    Is your brand communicating clearly to customers what they

    will receive in exchange for their data?

    Are you using the data to make the experience better for your

    customers?

    Do you have the right offers and discounts for your audience?

    Are you offering a compelling reason for customer to share

    data with you?

    By using customer data judiciously and protecting the privacy of

    your customers, your brand will create loyalty.

    Methodology

    SDL conducted an online survey that looked at the Data and

    privacy preferences of consumers in the United States, United

    Kingdom and Australia. Third party survey companies conducted

    the survey on behalf of SDL. The survey respondents were not

    aware the survey was conducted by SDL.

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    Respondents are worried about

    personal info being used for

    marketing

    Im a marketertrust me

    Global 62%

    US 65%

    UK 59%

    AU 64%

    Are Retailers Tracking

    Your Every Move?

    Of those consumers who have a smart-

    phone, 76% of global respondents arent

    comfortable with retailers tracking in-store

    movements thru smartphone and WiFi

    Global 76%

    US 82%

    UK 74%

    AU 76%

    76%

    Respondents rarely or

    never use Do not Track or

    Incognito features

    Global 72%

    US 71%

    UK 72%

    AU 72%

    Are Consumers using

    Do Not Track Features?

    Respondents rarely or never read a

    websites privacy policy before

    making a purchase.

    Do Website Privacy

    Policies Really

    Work?Global 65%

    US 63%

    UK 70%

    AU 56%

    Respondents dont prefer when

    stores and brands keep track of

    purchases to help give promos that

    match preferences.

    Do Promos Match Preference?

    Global 55%

    US 49%

    UK 59%

    AU 51%

    Who really should protect

    your personal data?

    of respondents expect

    consumer protection

    groups to monitor how

    brands use personal data

    Global 74%

    US 71%

    UK 73%

    AU 80%

    74%

    Respondents dont choose to dobusiness with brands/companies that

    use personal info to make experience

    better

    Consumers Prefer to

    Take it Personally

    Global 57%US 58%

    UK 60%

    AU 52%

    Respondents would give up

    personal information for free

    products and services

    What Consumers

    will Give to Get

    Global 41%US 44%

    UK 35%

    AU 50%

    Of those who use social media, respondents dont share

    more information about themselves on social media than

    share with brands or stores

    How Does Social Media

    Play a Role in Data Privacy Global 55%US 55%

    UK 55%

    AU 57%

    Respondents aremore likely to provide

    personal information

    to a trusted brand

    Consumers and

    Brand Trust

    Global 79%US 80%

    UK 75%

    AU 87%

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    Market Survey Marketing Data and Consumer Privacy: What Your Customers REALLY Think 11

    USDemo

    graphic

    UKDemographic

    AUDemog

    raphic

    AgeRange

    Age

    Range

    Age

    Range

    21%

    18-29

    29%

    45-60

    26%

    30-44

    23%47%

    55.9%

    46.9%

    Male

    53%

    44.1%

    53.1%

    Female

    Male Female

    Male Female

    14.45%

    11.60%

    18-24

    18-24

    21.25%

    22.40%

    19.85%

    23.20%

    35-44

    35-44

    24.20%

    20.50%

    25-34

    25-34

    20.25%

    22.30%

    45-54

    45-54

    55+

    55+

    Demographics

    60+

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    SDL (LSE: SDL) allows companies to optimize their customers experience across the entire

    buyer journey. Through its web content management, analytics, social intelligence, campaignmanagement and translation services, SDL helps organizations leverage data-driven insights tounderstand what their customers want, orchestrate relevant content and communications, and

    deliver engaging and contextual experiences across languages, cultures, channels and devices.

    SDL has over 1,500 enterprise customers, over 400 partners and a global infrastructure of 70offices in 38 countries. We also work with 72 of the top 100 global brands.

    Copyright 2014 SDL plc. All Rights Reserved. All company product or service names referenced herein are properties of their respective owners.SDL_srvy_Trust_Data_and Marketers_EN_A4

    For more information, visit www.sdl.com

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    journey across all channels, devices and languages. 72 of the

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    SDL Customer Experience Cloud is made up of seven best of breed

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