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It's time to rethink your business model if it relies on unconsented data and non-exemplary data practices. In the internet era, the single most important driver of business is trust. And, as consumer concern over the use of their personal data grows, earning this trust has never been more important.
Doing privacy well should be the rule and not the exception. Find out more about how to turn trust into a business driver at the first global Yes We Trust Summit, on October 7th, and continue reading to find out how an attitude oriented towards privacy can benefit both your company and your customers.
Summary:
- Privacy concern is widespread among consumers
- Consumers are more likely to buy from companies with transparent privacy practices
- Your company needs to provide good privacy information to win users’ trust
Securys Limited, commissioned Kantar to survey more than 4,000 adults across France, Germany, Ireland and Great Britain (survey sponsored by Didomi). The respondents were asked if the way companies treat their personal data changes their consumer habits.
Keep reading for the learnings we can take from this pivotal research, or watch the replay here of our recent Privacy Made Positive™ Lexology webinar, with Romain Gauthier, Didomi CEO and Ben Rapp, Founder & Principal at Securys Limited.
Privacy concern is widespread among consumers
Privacy is a global trend
Consumers are becoming increasingly concerned about how their personal data is being used, and regulators across the globe have taken notice.
Gartner predicts, in their Market Guide to Consent & Preference Management that, by year-end 2023, 75% of the world’s population will have its personal data covered under modern privacy regulations.
As a consequence, businesses need to adopt a "privacy-first" approach not only to become compliant with such regulations as the GDPR in Europe and the CCPA in California, but also to gain consumer trust.
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Gaining consumer trust is not an easy battle
Over half (54%) of respondents in the Privacy Made Positive™ research reported that it's harder than ever for a firm to earn their trust. Moreover, the survey shows that it’s not only young people who care about privacy, it’s entire nations of individuals who are concerned.
Put frankly, consumers don’t perceive brands as having improved their privacy approach and don’t believe in companies’ ability to protect data. One need only utter the words Cambridge Analytica to understand why fears around data usage are sharply rising.
Yes We Trust Summit: Didomi organised a worldwide event on October 7th 2021 on how privacy drives business
What is personal data, and who should it belong to? What value can companies place in data today? How can companies place trust in their raw data, how can it help take better decisions and be used in new ways without infringing privacy regulation? Watch the replay to know more.
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Privacy is a live and growing issue for consumers, not just a compliance burden or a box ticking exercise. Consumers are more concerned than ever about what is done with their data - so you need to be as transparent as possible about your privacy practices if you don’t want to lose current consumers, as well as miss out on new ones.
Privacy Made Positive™ E-book: Evidence that consumers act on privacy.
Download the e-book if you want to know what European consumers think about privacy, how it impacts their purchasing decisions and why your company should care. Our Privacy Made Positive™ research will get your colleagues, board and investors to care about investing in privacy!
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Consumers are more likely to buy from companies with transparent privacy practices
This increasing global concern about the way personal data is used is also reflected in daily purchasing habits, highlighting that privacy practices redefine the ways in which individuals engage with companies.
Privacy precedes purchasing
Across all countries included in the Privacy Made Positive™ research, nearly 80% of consumers pay a great deal of attention to privacy before proceeding with an intended purchase.
Two-thirds have stated to modify their purchasing decisions in line with supplier privacy commitments. Some 70% in GB, Ireland and France will not buy from a supplier if they are concerned about their privacy behaviour. Another 70% have not gone through with a purchase due to privacy concerns.
“The volume of people who think about privacy as a contribution to a purchasing decision is much higher than we expected.” - Ben Rapp, Founder & Principal at Securys Limited
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Also, consumers are willing to pay more for a product or service in order to feel as though their data is protected. Across all countries which have been surveyed, over one third of consumers consider better privacy more important than lower prices.
These results are the proof that good privacy sells and bad privacy repels. If you are not transparent in your marketing activities, if you don’t provide your users with the possibility to refuse cookies, and if you don’t give consumers control over their personal data, you can expect to suffer from some of the consequences mentioned above.
“Getting privacy wrong can have dramatic repercussions. Bad privacy leads people to drop their purchase, to bounce from your website or your mobile applications, to interrupt their navigation and to stop looking at your content. This is the hidden cost of privacy gone wrong and it can have an overwhelming impact on revenue.” - Romain Gauthier, CEO @Didomi
Good privacy helps marketing engagement
Companies often try to drop cookies on people's devices in a clandestine way, under the guise of "legitimate interest". They assume that, if they hide cookies and other tracking methods clauses deep within the pages of their terms and conditions, they will collect more data and thus carry on with their marketing activities as before.
But, this has led to mistrust and now consumers state that they rarely (15%) or only sometimes (31%) accept to cookies and marketing emails.
However, give users clear information about the cookies you are dropping, and the data you gather, and 70% are more likely to accept cookies and marketing emails.
Extend the olive branch of transparency, and reap the rewards of higher marketing engagement and happier prospects. Put simply, reap the rewards of the relationship of trust you will have fostered with your users.
“Good privacy information is something that will drive consumers to trust you. This will have a direct impact on their engagement with you” - Ben Rapp, Founder & Principal at Securys Limited
Your company needs to provide good privacy information to win users’ trust
It's time to say goodbye to the days of 20 page long terms and conditions, complicated legal language and hidden cookies disguised under the elusive veil of "legitimate interest". It's time to make privacy accessible to all. You might think this will destroy consent rates and leave your data practices worryingly open to scrutiny. But, actually, it's the opposite.
More often than not, users are left in the dark, faced with pages of impenetrable prose on how their data will be used. It’s time we reversed this cycle of distrust, and opt for a citizen-led data industry.
Transparency, consent, and trust are key to forming a long-lasting brand relationship.
Trust will be the foundation of future data collection, and the movement from data-driven marketing to customer-centric marketing will not only protect user rights, but encourage companies to collect high-value, good-quality data which include accuracy, completeness, relevancy, validity, timeliness and consistency.
This is where Didomi positions itself, as we believe that, in the internet age, trust is the single most important driver of success in business. Inspired by this mission, we build technology that allows organizations to place customer consent at the core of their strategy.
By making consent and preferences easily accessible, companies benefit from compliant customer data while seeing higher engagement and increased user trust. Consumers, on their side, are free to choose what data to share and how to stay connected to their favorite brands across touchpoints.
A change towards a "privacy-first" approach may be difficult at first. But over time, companies will realize that will definitely be a positive change for business.
See it as an opportunity and not as a burden. An opportunity from which everyone can benefit.
For more information, contact us!
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