Research reveals heightened awareness of data practices, and quantifies the impact on consumer trust, brand preferences, and purchase intent.
Ketch, the Trust by Design Platform for programmatic privacy and data stewardship, today announced the release of a groundbreaking study, The Person Behind the Data: People Weigh in on How Companies Handle Their Data. This report, by IPG Mediabrands’ investment and intelligence company, MAGNA, shows that consumers are very much aware of data privacy issues, and judge brands based on them. The research was completed by MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering.
Every consumer-facing brand relies on data to reach and engage people. How do consumers feel about how companies collect, store and use their data? What is the impact of data practices on the consumer’s perception of that brand? And how does that affect critical metrics tied to the bottom line: trust, brand perception, and purchase intent?
The data clearly shows that privacy is top-of-mind for consumers, as 74% say that they “highly value” data privacy. What’s more, 83% say they understand the value in sharing data with brands under the right conditions, such as when they want to learn about new products. Eighty-seven percent of consumers see a positive impact on their relationships with companies that demonstrate responsible data practices and respect for their choices.
At the same time, the overwhelming majority -- 82% of consumers -- are highly concerned about how their data is collected and used. A lack of transparency and control fuels this concern. More than half (57%) worry that brands use their data beyond intended purposes.
“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 Global. “It is an important issue that affects 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 brand preference and trust.”
Responsible data practices have a direct impact on metrics that are vital to a brand’s bottom line: trust, brand perception, and purchase intent. The study found an increase in purchase intent of 23% for brands and companies with responsible data practices. Data storage practices and data minimization had the greatest impact for US consumers.
“The implications of these findings are clear; data privacy builds trust with consumers, and responsible data practices have a measurable impact on the bottom line,” said Tom Chavez, Founder and CEO of Ketch.
The report surveyed 2,750 consumers across the United States. Seventy-six percent of respondents described themselves as the primary decision makers for household purchases.
MAGNA Media Trials also conducted five focus groups, with participants representing a diversity of age, race/ethnicity, income, geographic location and education level.
The Person Behind the Data: People Weigh in on How Companies Handle Their Data is available for download.
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. Learn more at ketch.com.
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.
We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/ and follow us on LinkedIn and Twitter.