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February 26, 2014
Market Survey
Marketing Data and Consumer Privacy:
What Your Customers REALLY Think
Overview
Big data is a big story in the marketing world: Marketers now have access to a wide range of consumer insights
that they couldnt access even five years ago.
In just five years, the scope of consumer insights that marketers are able to access has evolved, by way of
comparison, from a small pair of field binoculars, to the Hubble telescope. However, with this eye-in-the-sky,limitless availability of insights, there comes an unprecedented threat to consumer privacy not least from the
perspective of the consumer. And it comes as little surprise that people are guarded about sharing their data.
AnalyticsSocial
DocumentationeCommerce
LanguageCampaigns
Web
Contents
Im a Marketer. Trust me.
Consumers Arent Using Privacy Features
TRUST: Its the name of the game
Conclusion
Methodology
Infographic
Demographics
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Executive summaryAs marketers look to connect the dots between sales and offers,
online and offline, they need to remember that big data is really
about people collective and individual behaviors, families, homes
and lifestyles.
This report is the latest in SDLs series of original research to look at
how a newly-empowered consumer is fundamentally changing
industries and brands. The goal in our original research is to
uncover this consumers behaviors and expectations as they relate
specifically to individual industries, and more importantly, open up
insights on how brands can optimize their customer experience to
increase engagement, revenues and loyalty.
We surveyed more than 4,000 consumers in the United States,
United Kingdom and Australia. We uncovered their thoughts and
insights about how marketers use data, how they protect consumer
privacy, and how consumers perceive the use of their personal
information.
In this report youll find insights including the following:
Consumers are worried about marketers using their personal
data.
Marketers need to be transparent about how they use data.
Smartphone and WiFi technology may help track behaviors, but
consumers want to know the benefits of why they are being
tracked.
When consumers understand the value and see the incentive,they are willing to exchange data.
Social media and big data still remain an enigma.
We believe youll find this report actionable and that you will be
able to apply the perspectives we provide. As always, we welcome
your feedback on what marketing trends we can uncover for you in
the future.
Its not just data; its
personal; marketers need to
exercise respect for privacy
and use caution with
consumers data if they ever
hope to retain consumer
trust.
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Im a Marketer. Trust me.Brands have quite a challenge on their hands when it comes
to gaining consumers trust regarding personal data. SDLs new
research shows that consumers worry about how marketers use
their personal data. In fact, 62 percent of global survey respondents
said they worry about personal information being used for
marketing. In the United States, 65 percent of respondents worry
compared with 59 percent in the United Kingdom and 64 percent
in Australia. These results suggest a culture of resistance to sharing
such data online. Reasons for consumers worry include the fear of
the unknown what is going to happen to all that personal data?
Given the high profile media stories about identity theft, data
breaches and privacy issues with large, trusted companies, as well
as all of the reports regarding government agencies tracking data,
consumers are more aware of data and privacy issues than ever
before.
This media coverage is potentially fueling a backlash against
brands that want to provide relevant offers and promotions to
their customers. Brands have the opportunity to be part of the
conversation by being transparent in not only how the data is
collected, but also how the data is used. Brands need to seize the
opportunity to communicate with their customers proactively to
reduce the risk of damaging trust in the brand.
Its also worth noting, as one might expect, that older consumers
are more likely to worry about data and privacy issues than
younger consumers. In the United States, 59 percent of consumers
between ages 18 and 29 worry about data privacy compared with
71 percent of consumers between ages 45 and 60. Likewise, in the
United Kingdom, only 48 percent of consumers between the ages
of 18 and 24 worry, compared with 63 percent between the ages
of 45 and 54. The numbers are closer in Australia with 60 percent of
younger (18-24 years old) consumers worry about data and privacy,
compared with 66 percent of older consumers (45-54 years old).
Because consumers worry about how data is being used they are
relying on consumer protection agencies to monitor how brands
use their personal data. In the U.S. and the U.K., many consumer
protection groups focus on regulating the terms of bank loans,
credit card and other financial transactions, leaving consumer data
relatively unprotected.
In Australia, 80 percent of respondents expect consumer protection
groups to monitor how brands use personal data. This might be a
direct result of the Australian National Privacy Principles regulation
that controls how businesses must handle personal data.
Global
62%
US
65%
UK
59%
AU
64%
Respondents are worried about personal info
being used for marketing
SDLs research discovered that nearly three-
quarters of global respondents expect
consumer protection groups to monitor
data usage by brands.
Global
74%
US
71%
UK
73%
AU
80%
74% of respondents expect consumer
protection groups to monitor how brands use
personal data
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Consumers Arent Using
Privacy FeaturesDo Not Track technology lets users opt out of tracking by
websites, including analytics services, advertising networks, and
social platforms. At present few of these third parties offer a
reliable tracking opt-out, and tools for blocking them are neither
user-friendly nor comprehensive. Much like the popular Do Not
Callregistry in the USA, Do Not Trackprovides users with a single,
simple, persistent choice to opt-out of third-party web tracking.
SDL research suggests that while consumers are worried about
how their personal data is being used, they arent opting out
of website tracking. In fact, nearly three-quarters of global
respondents (72 percent) rarely or never use Do Not Track
features. This could be a reflection of the low adoption rate of the
technology overall. In addition, consumers may not realize this
technology is even available to them.
When examining the relationship between the consumer and
tracking behaviors and purchases, some brands and retailers are
looking to incorporate the use of mobile technology as well. A few
well-known retailers have explored using smartphone and WiFi
technology to monitor a consumers behavior in a physical store.
Marketers are looking to learn more about merchandise layout
in the store and other physical attributes that are a challenge
to understand. While this use of technology is still in its infancy,
marketers looking to deploy it must help consumers understand
why its being used and how it can benefit them.
SDL research also discovered that retailers and brands are
not showing consumers the benefit of tracking behavior and
purchases. More than half of all global respondents dont prefer
when stores keep track of purchases to help give promotions and
discounts that match preferences. This suggests that marketers
arent using this information in a manner that is helpful and relevant
to the consumer. Marketers need to improve their approach and
ensure that compelling, meaningful promotions are offered to the
correct consumer segment.
Global
72%
US
71%
UK
72%
AU
72%
Respondents rarely or never use Do not
Track or Incognito features
Of those that have a smartphone, 76% of
global respondents arent comfortable with
retailers tracking in-store movements thru
smartphone and WiFi.
Global
76%
US
82%
UK
74%
AU
76%
Of those consumers who have a smartphone,76% of global respondents arent comfortable
with retailers tracking instore movements
through smartphone and WiFi - simply
because they are not aware as to WHY they are
being tracked
https://www.donotcall.gov/default.aspxhttps://www.donotcall.gov/default.aspxhttp://localhost/var/www/apps/conversion/tmp/scratch_1/donottrack.ushttp://localhost/var/www/apps/conversion/tmp/scratch_1/donottrack.ushttps://www.donotcall.gov/default.aspxhttps://www.donotcall.gov/default.aspx5/28/2018 SDL: Marketing Data and Consumer Privacy: What Your Customers REALLY Think
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In addition, SDL research discovered that consumers rarely read
a websites privacy policy before making a purchase. Nearly two-
thirds (65 percent) of global respondents either rarely or never read
a websites privacy policy before making a purchase. Given the
length of privacy policies (and the legalese) that they are written
in, many consumers have given up trying to make sense of the
complex policies. Again, consumers trust the brand to respectprivacy and protect data. Brands need to protect this trust and
continue to communicate how data is collected, stored and used.
However, in Australia, 44 percent always or often read it. Australias
behavior may be an indication of the age of the ecommerce
industry in the region. Given geographic isolation and high online
shipping costs, many brands are just beginning to navigate the
ecommerce process.
While consumers are concerned about their personal data being
used by marketers, they arent as concerned about protecting theircredit card information when shopping online. Nearly 60 percent of
global respondents dont use a specific card or bank account that is
only for online purchases.
This shows that consumers trust brands to offer secure checkout
process and to safely use their credit card information. In Australia,
53 percent of respondents do use a specific card. Its suggested
that the rate is higher in Australia because the digital economy is
younger there than it is in the United States and United Kingdom.
Global
55%
US
49%
UK
49%
AU
51%
Respondents dont prefer when stores andbrands keep track of purchases to help give
promos that match preferences
Global
65%
US
63%
UK
70%
AU
56%
Respondents rarely or never read a websites
privacy policy before making a purchase
Global
58%
US
59%
UK
63%
AU
47%
Respondents dont use a specific card or bank
account that is only for online purchases
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TRUST: Its the name of the
gameSDL research revealed that consumers reward trusted brands
with personal data. Nearly 80 percent of global respondents are
more likely to provide personal information to a trusted brand
a brand they have purchased from before. As an example of a
trusted advisor, retailer Amazon.com has earned consumer trust
by fostering relationships with consumers by helping them make
decisions through recommendations of items based on past
purchases, user reviews and ratings and suggested complementary
purchases. Amazon consumers also have several choices for
building a personal bond with the company, including creating
user profiles, writing reviews and adding products to wish lists.
Brands that use digital marketing activities must understand
consumer views on data privacy, including what they consider
private and what personal information consumers are willing
to exchange with a brand. Consumers own the power in the
relationship. They have the ability to choose what information they
share so brands must offer compelling reasons to share this data.
This is another wake-up call for marketers. Consumers arent seeing
compelling reasons to share their information; they expect to
receive a positive customer experience regardless of whether a
brand has their personal information. Consumers expectations
are high and brands need to leverage whatever information they
have about the consumer to show them a superior experience that
builds trust and loyalty.
This is not to say that consumers dont want to share ANY
information with brands and retailers. In fact, consumers find value
in sharing personalized information in exchange for information
that is relevant and useful to their daily lives.
Consumers are willing to participate in a transparent exchange of
their personal data with brands. Of the items that consumers are
willing to share, gender, age and income top the list. However,
name of spouse, lists of family and friends and Social Security
numbers are items that consumers wont share with brands. The
trick is to learn what data your customers are willing to share and
then act accordingly.
While consumers are choosing which
brands and companies to do business
with, 57 percent of global respondents
said they dont choose to do business with
brands and companies that use personal
information to make their experience better.
Global
79%
US
80%
UK
75%
AU
87%
Respondents are more likely to provide
personal information to a trusted brand
Global
57%
US
58%
UK
60%
AU
52%
Respondents dont choose to do business
with brands/companies that use personal info
to make experience better
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In establishing that trust, brands must help consumers understand
what they are receiving in exchange for their personal information.
Nearly half of global respondents would give up personalinformation for a loyalty program.
When marketers are clear about how the information is being used,
which helps build trust. Likewise, consumers can choose how to
participate when they know all of the facts.
Global
49%
US
50%
UK
45%
AU
54%
Respondents would give up personal info to
a brand for loyalty programs
Its worth noting that in the United
Kingdom, nearly one-third of respondents
said that they wouldnt share any of the
information with brands.
Of the information that U.S.
respondents would share with brands/
stores to receive personalized offers
Gender 62%
US
Hobbies 52%
MaritalStatus 43%
Of the information that U.K.
respondents would share with brands/
stores to receive personalized offers
UK
Date of
Birth38%
Gender 37%
43%Marital
Status
Of the information that Australian
respondents would share with brands/
stores to receive personalized offers
Gender 64%
AU
Date of
Birth52%
MaritalStatus 52%
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And brands need to offer more than just free products and services.
Many consumers feel like there is no such thing as free they
assume there must be a catch. SDL research saw that only 41
percent of global respondents would give up personal information
for free products and services. Marketers should understand that
sweepstakes, give-aways and free promotions arent great for
consumers who arent motivated by free things. Marketers canbe more effective and save marketing budgets by focusing on
building that trust. In return, consumers will be more attached and
loyal to a brand.
In addition to sharing information directly with a brand, consumers
now share personal information on social networks and through
word of mouth. Marketers are looking to leverage this online
landscape to effectively reach their customers. However, marketers
should realize that consumers arent necessarily sharing more
information through social media that they are through traditionalmarketing programs.
Of those who use social media, 55 percent of global respondents
dont share more information about themselves on social media
than share with brands or stores. Brands arent making inroads in
social media. Consumers arent accepting brands as part of their
personal network. Once again, brands need to offer a compelling
reason to share personal information.
Global
41%
US
44%
UK
35%
AU
50%
Respondents would give up personal
information for free products and services
Global
55%
US
55%
UK
55%
AU
57%
Of those who use social media, respondents
dont share more information about
themselves on social media than share with
brands or stores
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This SDL research illuminates that unless
brands are trusted and provide consumers
with the way to control how their data is
used, they will not have a valuable role in
the digital ecosystem.
Conclusion
As marketers, you understand the importance of using customer
insights to offer more relevant promotions and discounts to your
customers. But now, you also understand that customers want to
protect their data.
As you use customer data for your marketing needs,
consider the following:
Is your brand communicating clearly to customers what they
will receive in exchange for their data?
Are you using the data to make the experience better for your
customers?
Do you have the right offers and discounts for your audience?
Are you offering a compelling reason for customer to share
data with you?
By using customer data judiciously and protecting the privacy of
your customers, your brand will create loyalty.
Methodology
SDL conducted an online survey that looked at the Data and
privacy preferences of consumers in the United States, United
Kingdom and Australia. Third party survey companies conducted
the survey on behalf of SDL. The survey respondents were not
aware the survey was conducted by SDL.
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Respondents are worried about
personal info being used for
marketing
Im a marketertrust me
Global 62%
US 65%
UK 59%
AU 64%
Are Retailers Tracking
Your Every Move?
Of those consumers who have a smart-
phone, 76% of global respondents arent
comfortable with retailers tracking in-store
movements thru smartphone and WiFi
Global 76%
US 82%
UK 74%
AU 76%
76%
Respondents rarely or
never use Do not Track or
Incognito features
Global 72%
US 71%
UK 72%
AU 72%
Are Consumers using
Do Not Track Features?
Respondents rarely or never read a
websites privacy policy before
making a purchase.
Do Website Privacy
Policies Really
Work?Global 65%
US 63%
UK 70%
AU 56%
Respondents dont prefer when
stores and brands keep track of
purchases to help give promos that
match preferences.
Do Promos Match Preference?
Global 55%
US 49%
UK 59%
AU 51%
Who really should protect
your personal data?
of respondents expect
consumer protection
groups to monitor how
brands use personal data
Global 74%
US 71%
UK 73%
AU 80%
74%
Respondents dont choose to dobusiness with brands/companies that
use personal info to make experience
better
Consumers Prefer to
Take it Personally
Global 57%US 58%
UK 60%
AU 52%
Respondents would give up
personal information for free
products and services
What Consumers
will Give to Get
Global 41%US 44%
UK 35%
AU 50%
Of those who use social media, respondents dont share
more information about themselves on social media than
share with brands or stores
How Does Social Media
Play a Role in Data Privacy Global 55%US 55%
UK 55%
AU 57%
Respondents aremore likely to provide
personal information
to a trusted brand
Consumers and
Brand Trust
Global 79%US 80%
UK 75%
AU 87%
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USDemo
graphic
UKDemographic
AUDemog
raphic
AgeRange
Age
Range
Age
Range
21%
18-29
29%
45-60
26%
30-44
23%47%
55.9%
46.9%
Male
53%
44.1%
53.1%
Female
Male Female
Male Female
14.45%
11.60%
18-24
18-24
21.25%
22.40%
19.85%
23.20%
35-44
35-44
24.20%
20.50%
25-34
25-34
20.25%
22.30%
45-54
45-54
55+
55+
Demographics
60+
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SDL (LSE: SDL) allows companies to optimize their customers experience across the entire
buyer journey. Through its web content management, analytics, social intelligence, campaignmanagement and translation services, SDL helps organizations leverage data-driven insights tounderstand what their customers want, orchestrate relevant content and communications, and
deliver engaging and contextual experiences across languages, cultures, channels and devices.
SDL has over 1,500 enterprise customers, over 400 partners and a global infrastructure of 70offices in 38 countries. We also work with 72 of the top 100 global brands.
Copyright 2014 SDL plc. All Rights Reserved. All company product or service names referenced herein are properties of their respective owners.SDL_srvy_Trust_Data_and Marketers_EN_A4
For more information, visit www.sdl.com
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