Partner Article

Data distrust pits consumers against business

Consumers around the world are actively sabotaging business success every day by deliberately providing the wrong information when asked for personal details, scuppering organisations’ growth plans. A new study by GBG, the leader in identity data intelligence solutions, shows consumers are fed up with being asked for their details, with two in three admitting to deliberately giving incorrect information because they believe the risks outweigh the benefits. But while this puts the consumer in the controlling seat, the practice could have a real and damaging impact on the global economy. According to the study, performance, service delivery and customer relationships will suffer if businesses aren’t dealing in accurate customer data. GBG is warning that a “trust meltdown” could have an impact on global prosperity as more and more businesses rely on a digital infrastructure for their growth plans. GBG’s study also unveiled the motivations behind the deception. Three in four (73%) consumers believe the risks outweigh the benefits when handing over data with 73% concerned that they will receive unsolicited contact from businesses as a result and 83% worried the information will be sold on to another organisation without their knowledge. Two in three (67%) don’t think brands are open enough, with the overwhelming majority of people (94%) wanting to know how their data will be used before they share it. Even businesses themselves admit they’re getting it wrong. Almost half (47%) admit to collecting data which is not used or useful. GBG CEO, Richard Law, said a chasm has formed between consumers and brands when it comes to data because customers aren’t aware of the value of sharing their information. “Data distrust is coming at a cost to businesses. Data is the fuel of the digital economy, and if there’s not enough or if it’s of poor quality, businesses will not survive. People have, quite rightly, placed a bounty on this information – whether it’s their name, location, items bought during the weekly shop, or even biometrics – because it’s their personal property. Businesses must treat it as such. “If we’re to avoid another global economic crisis, there needs to be a shift in the way businesses collect and use our personal information. At all times, less is more and they should only ask for the information they need. The value exchange must be crystal clear and businesses need to be open and transparent about why they are asking for the information, how they’ll use it, and the value they’ll give back to the customer. “For example, when registering to use a pub or restaurant’s WiFi, customers may intentionally submit false email or mobile data for fear of marketing spam; but what they haven’t factored in is that they will need to re-register every time they visit – rather than allow themselves to be ‘recognised’. And they’ll be excluded from any relevant discounts or special offers. So the experience is therefore one of hassle with repeated data collection and minimal value exchange. A different approach will transform this – bringing benefits to the consumer and to the business.” GBG’s study is part of its new Trust Economy campaign, a movement that is calling for businesses around the world to become more open, transparent and responsible in the way they use customer data. To see the full results and hear views and opinion from industry experts, visit the campaign website: www.thetrusteconomy.com

This was posted in Bdaily's Members' News section by GBGroup .