More than half of consumers will share personal data willingly if asked and data use and protections are defined, according to a new Bain & Company survey.
The research finds that customers' trust cannot be bought by companies offering compensation in exchange for selling or sharing personal data. Instead, the only viable approach is to ask consumers in a clear, straightforward way.
Bain surveyed more than 900 US consumers and found that 91 per cent of respondents do not want companies selling their data, even if they are compensated for it. People opposed to having their data used or shared—even when asked—are rarely swayed by offers of monetary compensation.
Bain's survey reveals that about 80 per cent of respondents know their data is being used in one way or another and has become a type of ‘currency' for companies seeking to better attract and retain customers. Yet they are often uncomfortable with how their data is used and shared. About two-thirds feel that it should be illegal for companies to collect or use such data without getting prior consent.
Consumer opinions vary according to the industry or sectors that could be using their data, according to Bain's research. Nearly 70 per cent of respondents want to prevent any level of government or any financial institution from sharing their data. Only 43 per cent have the same concerns with retailers and airlines.
Consumers are most willing to share user-contributed social data, such as product reviews; for that data, 44 per cent said it is fine to share without their explicit permission. But fewer than 20 per cent want their purchase behavior or demographic data shared without permission, while hardly anyone wants to see family/friend networks or financial or health information shared.