Consumers will share data, but want better returns

Consumers are willing to share personal data with companies, but few are feeling the benefits of doing so, according to Aimia’s new global Loyalty Lens Survey.

Aimia surveyed more than 20,000 respondents in 11 countries, including “leader” nations (more established loyalty markets) such as Canada, U.S., U.K. and France; and “disruptor” markets such as the United Arab Emirates, India and Brazil.

The survey found more than 80% of consumers in the 11 markets are willing to share personal information such as their names, email addresses and nationalities with brands; and 70% will share their dates of birth, hobbies and occupations. More than half (55%) said they part with their personal information to get better offers and rewards.

However, businesses are not using customer data to personalize and tailor customer experiences effectively, according to the study. While 26% of Canadians are willing to share their personal information for better services and benefits from brands, only 8% feel they have actually received better services and benefits. Globally, less than a quarter (23%) of consumers said the communications they receive from businesses are highly relevant to them.

“Consumers expect better services and more individualized offers in return for their openness and frankly, won’t hesitate to break up with brands that repeatedly send them irrelevant offers and information,” said Vince Timpano, president and CEO of Aimia Canada. “It’s paramount that marketers utilize consumer data to increase relevancy and dial back repetitive campaigns.”

Consumers know their data is worth something to companies, and they’re actively managing what they share. Globally, 68% of consumers ranked their data as valuable and 31% ranked it as highly valuable. In Canada, 20% of those surveyed have closed accounts and subscriptions over concerns about their personal data management.

“I think building trust, having transparency in how you use consumer data, and rewarding them in a personal way for their business helps ensure consumers continue to offer you their business, and ultimately engenders loyalty to your brand,” said Timpano.

The study also found there’s a limit to what people will share. Many consumers are still reluctant to share traditionally private information such as income, online purchases and web history. In Canada, only 48% are willing to share income, 36% are willing to share online purchases, and 22% are willing to share web history.

In addition, just 31% of Canadians are willing to share their mobile phone numbers. Consumers in the disruptor markets are more willing to share their mobile phone numbers (66%) than those in leader nations (37%).

Millennials and “Generation Z” consumers (those born after millennials) are more willing to share their mobile phone number than other generations. For example, in the U.S., 51% of 18-24-year-olds are willing to share their mobile phone numbers, compared to 30% of baby boomers.

This article first appeared on MarketingMag.ca