Consumers Suspicious of Sharing Personal Data with Companies

A whopping 88% of U.S. and Canadian consumers say they believe companies are primarily collecting personal information for their own benefit, nearly that many (85%) are often concerned about how much of their information is being held by others, and 74% don’t believe they benefit from sharing information according to an October 2011 survey from LoyaltyOne.

And even though 52% of survey respondents said they believe their information is being used to provide better service, only 9% strongly agree that this is the case.

This represents a very healthy skepticism on the part of consumers and shows that between the spread of internet safety messaging, and being burned by companies, has shifted the perception of average citizens towards sharing information. According to the survey, nearly one in three (32%) consumers has been notified their personal information was stolen or compromised.

Expectations for benefits are low

The survey also found that less than half believe that sharing their personal information will give them benefits like receiving tailored offers, advanced information, communications targeting their interests, easier purchasing processes, and preferred treatment or product improvements.

Companies beware

It would seem that consumers are tiring of the constant request for personal information by companies. Nearly a quarter of surveyed users (23%) say they have chosen against making a purchase due to uncertainty over how a company would use their personal information, and this percentage jumps to 30% of respondents who have received notification of a data breach and to 37% among respondents who have actually been negatively affected by a data compromise.

What consumers are doing to avoid information exposure

To limit the amount of information shared when general respondents do make a purchase, 41% say they pay with cash – this behavior jumps to 52% among those compromised by a data breach. 43% (jumps to 55%) say they refuse to provide a salesperson with their information, and 12% (jumps to 25%) say they have canceled memberships or opted out of loyalty programs.

Unfortunately, it doesn’t look like the survey asked about another common method for refusing to provide personal information – many people simply fake information in any field that’s not tied to billing or their address (hard to get the goods if you fake these). It would have been interesting to learn how many users go this route as I suspect the percentage is fairly high.

The data presented through this survey presents a very compelling argument for companies to provide real benefits in exchange for information, quit asking for information they don’t absolutely need, and to better protect information from data breaches. We’ll see if they take heed, but I’m not holding my breath.

Linda

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