Marketers and Consumers Disagree on Data Privacy Boundaries

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Four in five consumers have stopped doing business with a company because they disapproved of their data practices, according to a new survey from GetApp.

As data regulations continue to evolve rapidly, it’s harder than ever for marketers to maintain consumer trust. The blowback is real—a new GetApp survey reveals four out of five consumers have actually stopped doing business with a company because of their data privacy practices.

This brand-new data uncovers four fundamental disconnects between the way marketers are managing data privacy and what consumers expect of businesses collecting and using their data.

  1. Consumers want more control over how their data is used, but most companies aren’t providing clear or easy options. 

    Consumers have become increasingly savvy about the amount and type of data companies collect about them—and they’re taking it personally. Over two-thirds (68%) of consumers want more control over how companies use their information. However, only 34% of marketers say their company currently offers customers the option to access, rectify, or delete their data. Only 37% say their company allows customers to opt out of data sharing.

  2. Consumers are searching for companies that value their privacy, but most companies aren’t meeting consumers where they are. 

    Only 33% of companies engage in minimal data collection, despite consumers rating this as a top factor in gaining their trust. A majority (82%) of consumers also feel that it’s important for companies to explicitly state how their data will be used. However, just 38% of marketers say they provide this level of detail.

  3. Consumers are willing to share more qualitative feedback and reviews, but marketers are overly focused on capturing demographics. 

    Marketers are missing an opportunity to use customer sentiment data, such as product reviews, social media comments, and customer survey responses. An overwhelming 85% of consumers are willing to share sentiment data, yet just 36% of marketers collect it. Sentiment data is a subset of first-party data, which has become increasingly valuable given the impending end of third-party cookies.

  4. Marketers struggle with regulatory awareness even more than consumers, making both groups vulnerable. 

    Consumers and marketers believe the government bears the most burden for protecting data privacy. However, compared to marketers, nearly twice as many consumers believe individuals are most responsible.Fewer than half of marketers surveyed consider themselves very or extremely familiar with the California Consumer Privacy Act (CCPA) or the EU’s General Data Protection Regulation (GDPR), currently the two most important comprehensive privacy laws. Intriguingly, consumers showed slightly more familiarity with these regulations than marketers.

To bridge this privacy divide, businesses should reconsider their approach to data collection and privacy options. Visit GetApp.com to view detailed recommendations in the full report and gather insights for improving data practices that support marketing strategies while maintaining consumer trust.

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About Author

Barb has worked within the digital advertising and marketing space for over 20 years. Over the years, she found it difficult to find information on the simplest of subjects tied to the digital marketing space, so she decided to embark on a journey to create a space that others may appreciate.

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