Marketing analytics has a bright future ahead of it. According to a study conducted by Formation.ai, more than four out of five consumers are willing to share their personal data with a brand to take advantage of ad targeting and other tailor-made personalization options...
In the space of just a few years, privacy and data protection have come to occupy an important place in public debate in Europe and the USA. Consumers now seem more concerned about their privacy, and many activists are campaigning to defend their rights.
However, contrary to what the uproar of “Data Privacy” advocates might suggest, most consumers are not really reluctant to share their data. At least across the Atlantic…
This is the finding of an extensive survey conducted by Formation.ai, a San Francisco-based startup developing an AI-based personalization platform. The “Brand Loyalty: the Need for Hyper-Individualisation” study surveyed 2,000 US consumers during the first quarter of 2020.
Survey participants were asked primarily about their feelings regarding brand loyalty. However, their answers revealed that most had only subscribed to between one and three loyalty programs. A program needs to offer real benefits to win over customers. Moreover, 77% consider that companies are not doing enough to acquire this loyalty.
In addition, the survey confirms that personalization is now essential to capitalize on customer loyalty. In fact, 79% of those questioned believe that their loyalty to a brand is proportional to the degree of personalization it offers.
To benefit from the advantages of personalization, 81% of consumers say they are prepared to share personal information. And up to 83% of them are more inclined to share data if the brand is transparent about how this data is used.
Marketing Analytics: consumers are keen on personalization, but reluctant to share their health data
At present, however, this personalization strategy does not yet seem to be massively adopted by companies. Only 20% of those surveyed feel they receive emails “extremely frequently” with content specifically related to their lifestyle, interests or previous purchases.
Similarly, 18% feel they “extremely frequently” receive marketing emails featuring content so unique and relevant to their needs that they feel recognized as individuals. In short, personalization efforts are not yet fully perceived by consumers.
Beyond personalization options, it’s loyalty programs that attract consumers. In fact, 73% say they are more likely to engage with a brand that offers such a program. In fact, the implementation of a loyalty program by a company could be the key to obtaining even more data from its customers…
However, depending on a company’s sector of activity, consumers may be more reluctant to share their data. So even the benefits of advertising targeting are not enough to encourage the sharing of highly sensitive information such as health data.
In conclusion, product and service personalization options and loyalty programs can encourage consumers to share their personal data with a brand.
However, a certain amount of mistrust surrounds certain types of data, and companies need to reassure consumers by being transparent about how this information is processed and stored.
Data is a precious resource, increasingly coveted by companies. To find out more on this subject, take a look at our dossiers on Data Marketing and Sentiment Analysis.
