News

Eighty percent of consumers believe total data privacy no longer exists

May 28, 2014

The vast majority (80 percent) of consumers aged 20-40 in the United States and the United Kingdom believe total privacy in the digital world is a thing of the past, and nearly half (49 percent) said they would not object to having their buying behavior tracked if it would result in relevant offers from brands and suppliers, a new study by Accenture shows.

Privacy concerns aside, the survey of 2,012 consumers conducted in March and April 2014 indicates that they continue to embrace digital technology in pursuit of a good deal. In fact, nearly two-thirds of the respondents — 64 percent — said that when they are physically in a store, they would welcome text messages from that retailer alerting them to offers matching their buying preferences.

However, it’s clear from the survey results that consumers continue to be cautious about the use of their personal information. According to the survey:

• The majority of respondents — 87 percent — believe adequate safeguards are not in place to protect their personal information.
• Sixty-four percent — compared to 85% from the 2012 survey — are concerned about websites tracking their buying behavior.
• More than half (56 percent) say they are trying to safeguard their privacy by inputting their credit card information each time they make an online purchase rather than having that data stored for future use.
• Seventy percent of respondents believe businesses aren’t transparent about how their information is being used, and 68 percent say there is not enough transparency around what is being done with their information.
• A large number of respondents — 40 percent — believe only 10 percent of their personal data is actually private.
• Although 42 percent believe vendors and suppliers are using their personal data in order to provide them with more relevant offers, 39 percent believe their data is being sold.

Asked to rank the factors that would make them most likely to complete the purchase of a product or service, respondents’ top three choices were sales and competitive pricing (61 percent), superior products (36 percent) and superior customer experience — both online and in-store (35 percent). Customer loyalty programs and relevant promotions followed, at 31 percent and 26 percent, respectively, but engaging advertising campaigns and celebrity endorsements trailed far behind, at six percent and three percent, respectively.

The survey confirms that consumers in the 20-40 age groups are ubiquitous users of digital technology across multiple mobile platforms. Respondents own between three and four digital devices per person, on average, and 27 percent own more than four devices. They also spend an average of six to six and a half hours per day using a digital device for personal activities including messaging/texting (48 percent), emailing (39 percent), getting news (27 percent) and shopping for a product or service online (20 percent).

According to the survey, businesses appear to be making a good effort to reach these customers: Nearly all respondents — 90 percent — said they receive notifications of upcoming promotions or new services with varying frequency and half say these communications help guide future purchase decisions. However, there is also a clear pecking order among the types of communications that consumers prefer to receive from companies: Email was the top choice for 93 percent of respondents, followed by social media (57 percent) and text (44 percent). Only 25 percent of survey respondents said they are comfortable receiving phone calls.