Consumers will ‘punish’ businesses that fail to protect their data
New research from multi-cloud data management firm Vertias Technologies has suggested a lack of trust in businesses’ ability to protect data, and that consumers will penalise those who fail.
The statistics are taken from Veritas’ Global Data Privacy Consumer Study, which reveals insights from 12,500 consumers across 14 countries, including 1,000 consumers from the UK.
With more companies than ever being targeted and falling foul to data breaches, almost two in five (39%) UK consumers believe most businesses don’t know how to protect their personal data. As well as this, for those companies that do fall victim, more than half of consumers (56%) say they would stop buying from that business and almost half (47%) say they would abandon their loyalty and consider turning to a competitor.
However, the survey also found that consumers would reward organisations that properly protect personal data. Nearly half (46%) of UK respondents said they would spend more money with organisations they trust, with over a fifth (21%) willing to spend up to 25% more with businesses that take data protection seriously.
“Trust in businesses has been eroded by breaches and high-profile cases where firms have shown a lack of understanding of how the consumer data they hold is used or shared,” said Tamzin Evershed, senior director and global privacy lead, Veritas. “As consumers demand more transparency and accountability from businesses, the ‘new norm’ will see consumers rewarding those organisations that have good data hygiene practices in place while punishing those that don’t. Businesses must be seen as trusted custodians of data if they want to reap the rewards associated with building consumer confidence.”
As interest grows in how personal data is used and shared, the research shows that UK consumers would not consent to sharing the following types of personal data: Details about personal finance, including income, mortgage (66%), health/ medical records (47%), online habits (43%), location (43%), sexual orientation (27%) and religious preferences (26%).
- Almost two in five (39%) UK consumers believe most businesses don’t know how to protect their personal data.
- The majority (94%) of UK consumers are concerned about the protection of their personal data. Of this figure, almost half (46%) say they have no visibility into how companies are using or sharing their data.
- Over half (56%) say they would stop buying from a business that fails to protect their data.
- Almost half (47%) of UK respondents say they would abandon their loyalty to a particular brand and consider turning to a competitor.
- The majority (79%) said they would tell their friends and family to boycott the organisation.
- Nearly three-quarters (74%) claim they would even go so far as to report the business to regulators.
- Three in five (60%) UK consumers say they would post negative comments about the business online.
- Nearly half (46%) respondents would spend more money with organizations they trust to look after their data.
- Of that figure, a fifth (21%) say they are willing to spend up to 25% more with businesses that take data protection seriously.
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