The Data Exchange Economy: Consumers willing to share personal data for a fair return
But global report from Aimia shows businesses worldwide are failing to deliver on this exchange
Eight in 10 (80%) consumers around the world are willing to share key pieces of personal information with brands. Yet businesses are failing to respond. Only 8% of consumers around the world feel as though they are actually receiving better offers from companies as a result of sharing their details.
This is according to Aimia’s latest Global Loyalty Lens report, a major piece of international research surveying more than 20,000 consumers across 11 countries.*
An era of openness
More than 80% of consumers in the 11 markets studied are willing to share personal information such as their names, email addresses and nationalities with brands. Seventy per cent or more will share their dates of birth, hobbies and occupations.
Consumers around the world understand the value of their personal information to companies, with 68% globally ranking their data as valuable, and 31% ranking it as highly valuable**. More than half (55%) say they will share their personal information to get better offers and rewards.
However, they are not feeling the benefits.
Businesses failing to make their business personal
Businesses are not using customer data to personalize and tailor customer experiences effectively. Less than a quarter (23%) of consumers say the communications they receive from businesses are highly relevant to them. ***
“This is a golden moment for companies to build meaningful relationships with their customers, but this opportunity will quickly disappear if companies fail to respond appropriately,” said David Johnston, Group Chief Operating Officer at Aimia. “Companies need to realize that the power in the Data Exchange Economy rests with the customer. To be successful, companies must think about what they can do for the customer, not to the customer, with each personalized communication, experience and offer.”
The study shows the opportunity is greatest amongst consumers in “Disruptor” nations (those countries with quickly accelerating loyalty markets), and with Generation Z and Millennial consumers. These groups are much more inclined to share their data with brands, offering mobile numbers, lifestyle information, email addresses and other critical pieces of information:
- Consumers in the UAE (71%), India (68%) and Brazil (59%) are the most comfortable among all markets with sharing mobile phone numbers. In “Leader” nations (more established loyalty markets) just 37% of consumers will share their mobile phone numbers.
- Consumers in India are the most comfortable among all markets with sharing email addresses (90%), names (89%), and mailing addresses (68%).
- Consumers in “Leader” nations guard their purchase data much more zealously with only 39% willing to share that information compared with 56% in disruptor nations.
- Millennial and Generation Z consumers are more willing to share their mobile phone number than other generations. For example, in the US, 51% of 18-24 year olds are willing to share their mobile phone numbers, compared to 30% of Baby Boomers. The average across all age groups in the US to share mobile phone numbers is 43%.
Read more on the global loyalty market, coupon usage and softening attitudes toward digital wallets. The Aimia Global Loyalty Lens 2015 full report and multimedia assets can be found at http://aimia.com/en/loyalty-lens/global.html
Notes on the findings
* Research was conducted in the following 11 countries: Canada, UK, Spain, Italy, Germany, France, US, Australia, India, UAE, Brazil.
**Respondents were asked to rate on a scale of 1 – 10 (where 10 means extremely valuable and 1 means not very valuable) how valuable they think their personal information is to companies:
- 68% ranked their personal information as 7-10
- 31% rated their personal information as 9-10
*** Respondents were asked to rate how relevant they found the communications they receive from companies on a scale of 1 – 10 (where 10 means very relevant and 1 means not relevant). ‘Highly relevant’ is defined as those who answered 9 or 10 on the scale.