Consumers are more likely to share their personal data with retailers if the benefits of doing so are made clear, new research has found.
Overall, 70 percent of the consumers surveyed said they are comfortable giving data to retailers, mainly because sharing data is convenient, time-saving and helpful. However, 39 percent of consumers also said data mining is invasive.
Companies are still leery of giving data away for a few reasons. First and foremost, most consumers do not think retailers are doing a very good job of targeting them with ads. Seventy-five percent of consumers said retailers are not effectively targeting them with mobile apps. Additionally, 72 percent of consumers said online promotions and emails do not target their needs and interests.
Even though some consumers said current ads are not effective, they are still open to receiving additional targeted advertisements from retailers. Seventy-eight percent of consumers said they would make repeat purchases from retailers if they targeted those offers to customers' needs. Moreover, 71 percent of consumers said they would also be more likely to make a purchase if companies offered location-based incentives.
"This study is a wake-up call to companies about the enormous untapped opportunity to gain greater access to data by clearly communicating 'what's in it for me' to the customer," said Stephen Pratt, managing partner of worldwide consulting and systems integration, and executive council member, at Infosys. "Our research shows that people will certainly share, though they're very savvy about how they give up their personal information. Companies need to crack the code in mining data effectively to gain consumer trust and clearly articulate the benefit to their customers."
The research was based on the responses of 5,000 consumers in the United States, United Kingdom, France, Germany and Australia.