The Value of Customer Data
According to new research from Aimia, 71% of consumers believe their preferred brands are good at using their data to make online shopping better, but they also want to have more control over how brands use their data.
This surprising finding was based on an online survey of 15,000 people followed up by face-to-face interviews that asked more detailed questions that focused on three major sectors of business banks, retailers or supermarkets.
Expanding upon this concept, the research identified another, and perhaps more remarkable, finding: not only do a large percentage of consumers recognize the value of their data, they also would break it down into separate categories valuing different types of data at different dollar amounts.
- For online data such as browsing history and purchases, the average* consumer valued their data at $52.
- For information such as address, email, and phone details, the average consumer valued this data at only $33.
The Rise of Customer Data-Dealing
With consumers, increased understanding the value of their data their expectations for the trade off of sharing their data is increasing according to David Johnston, Group Chief Operating Officer at Aimia. “They know that their data is valuable to brands and when they share it they expect an improved service or benefit in return. It’s encouraging to see brands recognizing this and we need to continue to offer tangible benefits to customers for sharing their data.”
The Payoff of Customer Data Transparency
Beyond the desired tangible benefits consumers want an open and transparent relationship with companies. Research shows that consumers are more willing to share their personal data if they understand why information is being taken and how it will be used. For example, 69% of consumers said they would be willing to share their mobile number with a company when it was explained why they wanted it. The ability of companies to provide this open channel of communication is met by an improved relationship and sense of consumer loyalty.
Source: Aimia News Release
Key Takeaways for Marketers
The study, Understanding The Brand and Customer Data Exchange identified three key takeaways for marketers:
- Be transparent.Consumers are more likely to see value in sharing data when there are obvious mutual benefits. Inconsistency in data policies and visibility of data usage can make the exchange seem one-sided. In the absence of transparency of information or clear value, the company appears to receive more benefit from collecting the data than what the consumer receives by sharing it.
- Respect boundaries.Brands must respect the nuances between different consumer groups. Different types of consumers will have different levels of comfort with the type of data they will share, and what they expect for it in return. For example, nervous data sharers tend to be more open to sharing more information if brands remove unnecessary steps and make their online activities simpler. On the other hand, savvy data sharers are much more open to sharing personal information in exchange for a range of rewards.
- Add value. With behavioral data topping the list of data types that consumers are willing to share in exchange for new services or offerings, brands can prioritize leveraging this data for more effective campaign targeting and engagement. For example, brands can provide content that is based on the target consumers’ interests, or a service that helps to simplify their lives.
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Filed under: Customer Experience