Consumer Expectations for the Value Exchange around Data are Not Being Met
Redpoint Global, a leading software provider that helps brands deliver revenue-generating, personalized customer experiences, recently announced new research revealing customer frustrations with receiving mistargeted information from brands. Unmet expectations include, among others, receiving inaccurate promotional emails or recommendations unrelated to prior purchases. Currently, 70% of consumers reported receiving mistargeted information at least once a month and 24% say they receive mistargeted information daily.
To combat the high level of mistargeted information, consumers are willing to provide access to their data in exchange for better customer experiences. Half of the consumers surveyed (52%) want customer experiences with less transactional friction and an additional 30% want discounts and future promotions in exchange for their data. Yet, despite the willingness to share information, ongoing mistargeting of next best offers or next best actions by many brands antagonizes consumers expecting personalization. In the survey, 51% of consumers said it negatively impacts their overall customer experience with a brand when they receive mistargeted communications.
“Today’s consumers have high expectations of all brands they engage with to provide personalized experiences with minimal data risk,” said John Nash, Chief Marketing and Strategy Officer for Redpoint Global. “Brands that prioritize hyper-personalization with consumers will gain consumer trust and build brand equity. Utilizing the most up-to-date information on consumers to deliver seamless, relevant interactions with as little friction as possible will be a major factor in the future successes of today’s brands.”
When it comes to generational breakdowns, younger consumers are more willing to share personal data in exchange for enhanced personalization and are more likely to demand personalization than older consumers. In the survey, 41% of Millennials feel brands should be able to immediately adapt offers and interactions at the moment of new data ingestion. Conversely, just 26% of Baby Boomers considered this a priority. Consistent with these differences, just 11% of Boomers said that brands know them very well, with more than twice as many of the youngest consumers, Gen Z, (25%) saying the same.
In relation to privacy, 27% of consumers also say that current regulations do not protect their data effectively, but still feel that it is ultimately a brand’s responsibility to ensure their data is protected. Nearly half of consumers surveyed express a desire for stricter privacy regulations at the national level and better transparency around data leaks. Furthermore, 48% of consumers would stop doing business with a brand if it gave away their personal information without permission. Fewer than a quarter of consumers believe that brands are truly transparent about how consumer data is used, and 11% of respondents said there is nothing brands can do to improve trust. Many consumers also want to take more control of their data, with 54% interested in having the ability to easily delete data they have already provided to brands.
The survey shows the importance of brands using an accurate and complete single customer view, a Golden Record, to deliver better customer experiences. A Golden Record provides a holistic picture of the individual customer, compiled via disparate data sources from across the enterprise and is the gateway to driving, real-time omnichannel customer journeys.
This survey was conducted via Dynata Research in June 2022 and targeted 1,000 U.S.-based consumers over 18 years of age. For complete survey methodology, email [email protected]