New Research by MAGNA, a unit of IPG Mediabrands, reveals 74% of consumers highly value their data privacy and will reward brands who are responsible data stewards with 23% increased purchase intent
New York, NY- July 12, 2022 –The way that companies handle personal data is a hot-button issue among consumers, according to a new study by MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, and Ketch, a privacy and data governance platform. The study, “The Person Behind the Data,” found increase in purchase intent of 23% for brands and companies with responsible data practices. Further, the study found that data privacy is a top priority to 74% of respondents.
The study explored the opinions of primary purchasers and decision makers about how companies handle their data. Privacy is as important a shared value for companies to focus on as environmental sustainability, and diversity and inclusion, with respondents ranking all three at highest levels of importance. Meanwhile, companies would do well to provide greater transparency and control for consumers, as 82% voiced concern about how their personal data is gathered and used.
“The findings highlight that offering meaningful transparency and greater choice over data collection and use is a commercial imperative. Creating a thoughtful, people-friendly experience for expressing those choices is a key component of trustworthy data practice that delivers to consumer expectation,” said Arielle Garcia, Chief Privacy Officer, at UM. “When people understand and appreciate the benefits of sharing their personal information with a company that they trust, they are more willing to participate in that exchange. In sum, these findings underscore the opportunity for companies that take a cross-functional approach to privacy and data initiatives, with stakeholders across legal, privacy, marketing, sales, IT, and customer experience.”
Other study findings include:
- Lack of Transparency and Control: 57% of respondents agreed that not knowing where data is going or how it is used was a problem, and 64% said they felt they did not have full control of their data.
- The Value Exchange: While 82% were concerned how data was gathered and used, 83% of respondents could see the value of sharing their data. Some of the benefits of sharing data include learning about new products (45%) having a personalized experience (45%) and receiving a benefit from the company (43%)
- Storage Wars: How long companies store their data impacted trust (40%) and purchase intent (52%) more so than the amount of data collected, level of transparency and data-sharing practices.
- Challenges by Industry: The study examined various industry verticals and found data collection practices impact purchase intent somewhat differently—Amount of data collected, by far, concerns telecom users at 55% while retail shoppers cited data sharing practices as their greatest concern at 44%.
“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,” said Kara Manatt, EVP, Managing Director, Intelligence Solutions, at MAGNA. “It is an important issue that effects 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 the brand preference and trust.”
“Brands are looking for the responsible path forward. What I love about this study is it confirms how important data privacy is to consumers in their relationship with brands and puts the numbers to that trust” said Jonathan Joseph, Head of Solutions & Marketing at Ketch. “Consumers care about data privacy, they understand the value exchange when sharing data, and will make purchase decisions based on how brands handle their data.”
“The Person Behind the Data,” surveyed a nationally representative sample of 2,751 people, in two (POV and conjoint) online surveys and incorporated the feedback from five, diversely populated focus groups.
The full study may be found here.
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Ketch enables businesses to build trust with consumers and drive growth through data. Ketch’s Trust-by-Design Platform is a coordinated set of applications, infrastructure, and APIs that collapses the cost and complexity of privacy operations and mobilizes responsibly gathered data for deeper customer engagement and top-line growth. To learn more, visit ketch.com.
Vice President, Global Corporate Communications