Latest News  

KPMG study: Big data needs a big re-think: consumers are more anxious, but businesses can restore trust with greater transparency

Global KPMG study of 25,000 consumers reveals that we are embracing new technology, but are concerned about the types of data held by businesses.

2019-01-08 19:34:22

Three-quarters of consumers are willing to share their data, but over half are concerned with identity theft, and almost three-quarters don't trust anyone with their social media data.
According to a study released recently by KPMG International, consumers are more anxious, and although they are embracing new technology, they are more aware of the risks and benefits of handing over their data to businesses. The study includes a survey of 25,000 consumers in the UK, US, UAE, France, Brazil, Canada, China and India.

The study, published by KPMG's Global Consumer Insights Program as part of the 2018 Me, My life, My Wallet report, shows that almost half (47 per cent) of consumers feel more anxious than last year and the same number feel more anxious than five years ago. Despite increasing anxiety and recent data scandals, three-quarters (75 per cent) of consumers are still willing to provide businesses with their data.

The survey shows that a quarter of consumers (24 per cent) would not trade their data; however, millennial consumers are more likely (21 per cent) than their baby boomer counterparts (5 per cent) to trade their data for better customer experience and personalization. Likewise a fifth (19 per cent) of millennial consumers would trade their data for better products and services, versus just 8 per cent of baby boomers. The study shows that younger consumers are just as anxious and concerned about identity fraud, however they are more likely to see the benefits of sharing data.

"New technologies can help companies develop new products and services better adjusted to new needs of the 4.0 revolution. As these reshape the business strategies, it is important to focus on the customer experience as one of the most important components of success. Great products and services have a brighter future when paired with great customer service, and the future will belong to companies providing personalized, integrated customer experiences, that invest in understanding their clients data and building innovative offerings around it," explains Aura Giurcaneanu, Partner, Head of Consumer Markets & Retail, KPMG in Romania.

While the majority of consumers are willing to provide businesses with data, half (51 per cent) of consumers are anxious about identity theft, and the majority (72 per cent) don't trust anyone with their social media data. In fact, additional research* highlights that 42 per cent of consumers have updated their social media privacy settings in the last 12 months.

The findings suggest that businesses can earn the loyalty of consumers by following four rules for data transparency:
• Be open about why you're asking for certain types of data.
• Be clear about how you will protect it.
• Be honest about whether it is sold or shared outside the organization.
• Don't be selfish about the value of data – reward consumers for sharing their data with you.

Consumers are increasingly aware of the value of their data. The research* shows that 85 per cent of consumers want firms to protect their information without having to ask, and 77 per cent are against their data being sold on. Businesses that follow these rules are likely to fare better than the competition.
Commenting on the results, Julio J. Hernandez, Global Head of Customer Advisory, said: "Consumers are anxious, with younger generations feeling it the most. They like new technology but are concerned about handing over personal data, and what that could mean for their privacy and security. Our research demonstrates that organizations should be aware of the heightened awareness people have about the value of their data; they want to feel that they are in control at every stage of the business relationship. Many companies haven't yet fully grasped the concerns consumers have about sharing their data, or how this could affect consumer loyalty. Yet more and more businesses are looking to monetize the data they hold – whether that's what we put in our shopping basket, how many times a week we exercise, or what we choose to watch. Consumers are more aware of the value of their data, and businesses need to be responding to this new, tech-driven, data-savvy type of customer. The smartest businesses I work with understand this new environment and are focused on earning their customers' trust for the way they hold and use their data."

Consumers trust some industries more than others and with different types of data
Consumers ranked industries in order of trustworthiness with healthcare on top and advertising at the bottom:
Top three:
• Healthcare providers (60 per cent)
• Banking providers (59 per cent)
• Technology companies (54 per cent)
Bottom three:
• Wealth management (37 per cent)
• Government (37 per cent)
• Advertising (26 per cent)

Consumers are more likely to trust firms with the data relevant to their operations. Globally, 71 per cent of consumers will trust a banking provider with their financial data, but only 9 per cent would trust retailers with this information. Likewise, 47 per cent of consumers would trust a telecoms provider with their mobile data, but only 8 per cent would trust advertisers.

The study shows that consumers are more willing to share financial data than social media or browser history data. 72 per cent of consumers don't trust anyone with their social media data, 68 per cent with their search history or browsing data, and 81 per cent don't trust behaviorally tracked ads; only 41 per cent wouldn't trust any type of business with their payments data.

The results of KPMG's study demonstrate that businesses are dealing with more data-savvy consumers who want to be in control. Two-thirds (67 per cent) of consumers say they can determine what information is trustworthy, and a third (30 per cent) choose to disconnect from technology when they feel overwhelmed.

Consumers like new technology – but they want value from sharing their data.
The study shows that two-thirds (66 per cent) of consumers are interested or very interested in technology. This number jumps in the fast-growing economies of India (83 per cent) and China (81 per cent). Consumers in these "tech-boom" countries, are more likely to shop online – 59 per cent in China and 54 per cent in India compared to the global average of 37 per cent, and are more likely to trust businesses with their data. 91 per cent of consumers in China and 85 per cent in India are happy to exchange their data.

Globally, 51 per cent of consumers are anxious about identity theft, 48 per cent about the hacking of financial, medical, or other personal info online, 46 per cent about theft of credit card info when shopping online, and 38 per cent about unauthorized tracking of their online habits by companies, governments or criminals.

Almost half (47 per cent) of consumers feel more anxious than last year and the same number feel more anxious than 5 years ago. UAE (60 per cent) and Brazil (58 per cent) see the highest figures, with France (37 per cent), Canada (40 per cent) and UK (40 per cent) showing lower levels of anxiety. Younger generations are more anxious than older generations. More than half (51 per cent) of Generation Y consumers feel more anxious than last year, compared to 46 per cent of Generation X consumers, and 36 per cent of Baby Boomers.

Colleen Drummond, Partner, KPMG in the US and Head of KPMG Innovation Lab, added: "Businesses all too often view the exchange of data as a one-way street, expecting consumers to give away data with little benefit. However, as our reliance on technology grows, we're becoming more and more aware of the data we create, and are starting to see it as a valuable currency that businesses need to earn if they want to earn our cash. Those businesses that fail to shore up consumer trust in the way they hold, protect and use data will lose out in the long-run, and consumers will vote with their feet."
Willy Kruh, KPMG Global Chair of Consumer & Retail, commented: "Companies must begin to appreciate that the modern consumer is highly aware of the worst ways in which their data can be misused. From hacking to unwarranted tracked advertising, consumers are rightly worried. Transparency and better communication will go a long way to reassuring customers that their data is in safe hands and that it is being used in their benefit. Every business needs to think hard about how to use data responsibly to build deeper insights and relationships with their customers. And they have to know that if they don't, their competitors will."

About KPMG's Consumer Insights Program research: KPMG conducted an extensive, global study which included a survey of almost 25,000 consumers in the UK, US, Brazil, UAE, France, Canada, China and India. Further context was provided by in-depth ethnographic interviews with consumers on the ground in these same eight countries.

The 2018 Me, My life, My Wallet report is a deep dive into the story of today's consumer and the ways humans from every corner of the globe are both fiercely individual but also experiencing a world of technology convergence and changing cultural landscape – and what that means for how they earn, spend and save.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Deloitte Romania opens application for the 20th edition of Technology Fast 50 Central Europe competition

Deloitte Romania opens application for the 20th edition of Technology Fast 50 Central Europe competition, the prestigious regional ranking for fast growing companies in the technology sector.

 Read Full article »
Zitec launches its 1 million Euro Mirro app

Zitec, specializing in the development of customized tech solutions, services and products, launched Mirro.io within Bucharest Tech Week 2019, a dedicated application for measuring the performance within the co

 Read Full article »
Analysis: Romania needs 1 million workers and 10,000 industrial robots

The Romanian economy has been facing for several years an acute crisis of workforce, the necessary of workers being evaluated at approximately 1 million people, but 10,000 industrial robots as well, shows an an

 Read Full article »
Adobe to add 100 more people in Romania to the already 600 staff professionals

Adobe Romania announced it touched the 600 employees' milestone in Romania and it is looking to expand its local team with 100 more professionals experienced in technical and software engineering.

 Read Full article »
Randstad Employer Branding 2019: Salary, benefits - most important criteria for 70% of Romanians when applying for job

The Chinese with Huawei and the Americans with IBM and Ford are the most wanted employers in Romania, and the most important criterion for Romanians in case of an employment decision is salary and extra-salary

 Read Full article »
Deloitte 2019 Global Human Capital Trend report for Romania: Leaders need to understand new technologies

The most important things for Romanian employers are lifelong learning, developing leaders and improving employee experience, according to Deloitte 2019 Global Human Capital Trend report for Romania.

 Read Full article »
Fortech expands its footprint with a new sales and consultancy hub in Chicago

Fortech – one of the largest Romanian-owned IT services companies, repeatedly recognized by Deloitte and EY – today announced the opening of its flagship sales and consultancy office in the U.S., in downtow

 Read Full article »
Digitization boosts the controlling market in Romania, estimated at 80 million Euro

Management consulting company Horváth & Partners estimates that believes that in the near future, the digitization of financial departments will become a necessity and it will be a decisive factor in streamlin

 Read Full article »
ABSL organizes its next Business Mixer at Brasov on May 22nd

Brașov Business Mixer is the first conference organized by ABSL, dedicated to the local business services community.

 Read Full article »
Oracle Academy numbers 650 students and 200 teachers participating within its projects in the past six months

In the past year, worldwide, Oracle Academy worked with more than 15,000 educational institutions across 128 countries, supporting more than 6.3 million students worldwide to prepare them for careers in our tec

 Read Full article »
 
 
 
MOST READ ARTICLES
» Digital Transformation Conference to t...
» ASE's HR Master – helping students i...
» Marian V. Popa: Meet the speakers at R...
» Meet the winners of ROMANIAN BUSINESS ...
» Capgemini to open new office at Suceav...
» Romulus Caralicea: Meet the speakers a...
» Randstad Employer Branding 2019: Salar...
» Zitec launches its 1 million Euro Mirr...
» Deloitte Romania opens application for...
» Oracle Romania inaugurates the Iasi of...
 
EDITOR CHOICE
Digital Transformation Conference to take place on June 19 at Bucharest

The Diplomat – Bucharest organizes Digital Transformation Conference to be held on 14 of June in Bucharest, at Hilton Hotel - Regina Maria Hall, starting 8:30 AM.

 Read Full article »
L&D Conference by The Diplomat Bucharest to take place on June 4th at Bucharest

The Diplomat-Bucharest organizes the Third Edition of its Learning & Development CONFERENCE on 4 June, 2019 at InterContinental Hotel Bucharest starting 09:00 am.

 Read Full article »
Meet the winners of ROMANIAN BUSINESS SERVICES AWARDS, 2019 edition

ROMANIAN BUSINESS SERVICES FORUM & AWARDS 2019, in its fifth year, brrought on May 7, in Bucharest, a new concept event with engaging keynote sessions by industry leaders, interactive panel discussions, network

 Read Full article »
Few hours away from to the long awaited CEO Leaders Debate, a premiere of Romanian Business Services Forum and Awards

We are a few hours away to the long awaited CEO Leaders Debate, a premiere of Romanian Business Services Forum and Awards on May 7.

 Read Full article »
Colin C. Lovering: Meet the speakers at Romanian Business Services Forum & Awards 2019, on May 7

Colin C. Lovering has been living and working in Romania since 2009 when he arrived to offer consultancy and advice to organisations looking for growth and profitability and founded Achieve International.

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events