New data commissioned by enterprise customer data platform, Treasure Data, has found that over half of UK consumers (51 per cent) deliberately try to withhold their personal data from brands. With almost a third indicating that they would prefer to remain completely anonymous from brands altogether.(31 per cent). Yet 79 per cent of senior executives in the UK believe their customers trust them with their personal data, revealing a major disconnect; the data trust gap.
Why the disconnect? Brands are under-delivering on data-driven communications
Two-thirds (66 per cent) of UK consumers hear from brands digitally six or more times per day, yet a staggering 88 per cent of them claim that half or less of the content they receive is relevant to them. Worryingly, almost one in five (19 per cent) UK consumers said none of the content they received was of relevance at all. This has shined a bright light on brands’ failure to deliver accurate data-driven targeting.
With 41 per cent of consumers saying they would switch away from even their favourite brands if the customer experience worsened, these findings suggest brands are at significant risk of losing valued customers.
C-level executives are taking consumer trust for granted
Despite falling short on data-driven targeting – a major measure of customer experience – over three quarters (79 per cent) of UK senior executives still believe that their customers trust them with their personal data.
But a significant portion of the C-suite recognise there is trouble ahead, with 40 per cent saying that a lack of consumer trust to provide their personal data will be one of the biggest barriers to customer understanding over the next 12 months.
Data security concerns risk compounding the trust problem
Almost two-thirds (63 per cent) of the UK C-suite polled claim that their organisation has experienced a data breach, with more than 3 in 10 (34 per cent) of those who had said it happened in the past year or 6 months.
This is a cause for concern for brands, as well over half (54 per cent) of consumers say they would switch to a different brand if a brand they use had experienced a data breach.
Commenting on the research findings, Director of Marketing EMEA and India at Treasure Data, Andrew Stephenson said:
“Our research exposes a concerning trust gap between UK brand leaders and their shoppers. From customer experience to data security, consumers expect a lot from the brands they share their personal data with, and in some cases, it seems brands are falling short.
As Brits continue to spend carefully amidst stubborn inflation, it is more important than ever for brands to use a data-driven approach to serve the right message in the right place and at the right time to win market share.
Brands today have unprecedented amounts of customer data at their disposal, but how effectively and safely that customer data is used looks to be the key differentiator for shoppers. Those which get data management right will find themselves pulling away from the competition.”
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