As scrutiny over personal data collection and sharing practices increases from both the media and government,marketers need to change their approach to audience targeting and find alternatives to “consumer data giants,” in order to build and maintain trust with their customers.
In March 2013, Neustar commissioned Forrester Consulting to evaluate consumer attitudes and understanding of privacy and the marketing ecosystem’s various uses of personal data. The study sought to determine whether marketers who take a permission-based, “privacy by design”-approach to the use of third-party data will build more loyalty and deeper engagement with their customers.1
In conducting a rigorous online study of more than 1,000 US adults, Forrester found that consumers perceive brands that take a respectful, protected approach to collecting and using customer data as being trustworthy.
Forrester’s study yielded four key findings:
- Consumers are increasingly concerned about their personal data and are taking steps to protect it.
- Individuals are most frustrated by marketers “profiteering” from their personal data.
- Consumers are more loyal to, and willing to share data with, brands they trust.
- Marketers should take a privacy-led approach to customer data collection and use.
To read the full paper, please download the pdf.
For more information about the results of the report, please read these articles:
1. “Privacy by Design” is a framework developed within the Information and Privacy Commission of Ontario, Canada. Its goals are “ensuring privacy and gaining personal control over one’s information and, for organizations, gaining a sustainable competitive advantage.” In March 2012, the US Federal Trade Commission called for organizations to begin adopting the PbD framework. More details can be found at http://www.privacybydesign.ca/index.php/about-pbd/7-foundational-principles/