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DMA: Data usage reliant upon consumer trust
Marketing News |
22/06/2012
Businesses need to build trust to encourage consumers to share their personal information, or risk falling behind in the digital economy, it has been suggested.
Research conducted by Future Foundation and published by the Direct Marketing Association (DMA) suggests that one in three people now regard their personal information as a tradable commodity.
This means businesses have the potential to use data for commercial purposes, providing they can gain the necessary permissions from their users.
According to the survey, trust in a brand is the main factor in determining whether or not a person is prepared to share their details for marketing purposes.
Some 58 per cent cited trust alone as being the most important factor, compared to 32 per cent who said the offer of price discounts would be a sufficient incentive.
Control over the disclosure and use of information was also rated as an important factor in building trust, with 85 per cent saying they would prefer to retain control of their information and exchange it for benefits or services when it suited them.
Chris Combemale, chief executive of the DMA, said companies that fail to grasp contemporary consumer attitudes towards data privacy will lose out to more data savvy competitors.
“Online platform owners and brands that market digitally must understand the current range of consumer views on data privacy," he stated.
"Insight into what they regard as private, what information they’re willing to exchange and under what circumstances should underpin their marketing strategies."
Mr Combemale said the balance of power is now "tilted towards consumers".
"They alone have the ability to choose who they share their information with, so it’s down to brands to give them a compelling reason to do so," he added.
"Unless brands are trusted, provide people with the opportunity to control how their data is used and suitably reward consumers for sharing it then they will be left behind in the digital economy.”
Posted by Stephen Wilkinson
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