Consumers are getting increasingly savvy when it comes to which firms they give their personal information to, according to a new study, which shows one-third view their own data as a tradable commodity.
The DMA-backed survey carried out by Future Foundation polled 1,020 adult UK consumers and claims to be the biggest and most comprehensive study of its kind.
It claims highlights that brands can no longer hoodwink consumers and must be transparent about how they use their data – and give them greater control – or face being left behind in the digital economy.
Titled “Data privacy: What the consumer really thinks”, the report reveals that the public holds a finely nuanced range of perspectives and a sophisticated level of understanding of the commercial value of their personal information and how it is used by companies.
Four in five (80%) people now accept that the disclosure of personal information is ‘a fact of modern life’. Meanwhile, one in three (35%) regard their personal information as a commodity to be traded with companies in exchange for free services or better benefits, rising to two in five (40%) of 25- to 40-year-olds.
Three in five (58%) cited trust alone as being the most important factor when deciding whether or not to share their information, compared to one in three (32%) that said the offer of price discounts would be a sufficient incentive.
Control over the disclosure and use of information was rated as an important factor in building trust; 85% said they would prefer to retain control of their information and exchange it for benefits or services when it suited them.
DMA chief executive Chris Combemale warned companies that fail to grasp contemporary consumer attitudes towards data privacy will lose out to more data savvy competitors.
He said: “Online platform owners and brands that market digitally must understand the current range of consumer views on data privacy. Insight into what they regard as private, what information they’re willing to exchange and under what circumstances should underpin their marketing strategies.
“The balance of power is now tilted towards consumers. They alone have the ability to choose who they share their information with, so it’s down to brands to give them a compelling reason to do so.”
The survey has also revealed other depths to the complex attitudes people hold with regards to data privacy.
Consumer recognition of the ways in which companies can use personal data is high, with 85% stating they were ‘aware or somewhat aware’ of the techniques used by companies to track online behaviour and preferences. Awareness of limiting use of personal data was also high, with 63% claiming to have placed restrictions on who can access their Facebook page.
The research highlights that greater online activity has shifted views on what people do and do not deem to be private. Two in three (63%) cite familiarity with sharing information online and via social networking as reshaping their definition of privacy.
