More than two-thirds, 74%, of consumers highly value data privacy and 83% understand the value in sharing data with a retail brand under the right conditions — such as learning about products.
That’s a prime finding of the Ketch study, “The Person Behind the Data: People Weigh in on How Companies Handle Their Data.” The report, by IPG Mediabrands company Magna, revealed consumers are very aware of data privacy issues and judge brands based on them, according to a press release.
The data revealed 88% of consumers see a positive impact on their relationships with companies that demonstrate responsible data practices and respect for their choices.
Yet 82% are highly concerned about how data is collected and used and more than half, 57%, worry brands use their data beyond intended purposes.
“People see the value in data sharing but they are concerned about how companies are handling their personal information and think they should be doing more,” Kara Manatt, EVP, managing director intelligence solutions at Magna Global, said in the release. “It is an important issue that affects the bottom line and even long-term brand preference. Marketers spend billions of dollars and years building how people feel about their brands, and now, increasingly, data practices play a growing role in brand preference and trust.”
The study found an increase in purchase intent of 23% for brands and companies with responsible data practices. Data storage practices and data minimization had the greatest impact for consumers.
“The implications of these findings are clear; data privacy builds trust with consumers, and responsible data practices have a measurable impact on the bottom line,” Tom Chavez, founder and CEO of Ketch, said in the release.