The value exchange: with great data comes great responsibility
Data is the foundation of every relationship between a brand and their consumer. While the 2018 project focused on the Australian market and its consumers, some key learnings extend to a Global audience. Those learnings include the data consciousness of consumers, and the changing demands being placed on brands to acquire this information.
Data opportunism – where people will offer up their data in return for rich, rewarding brand experiences, without surrendering control over its use - is the focus of the 2018 Data Consciousness Project.
The project revealed a growing consumer awareness of the value of their data – and a consciousness of what was offered in return for access to it. The most significant learning from the study was the set of factors critical to creating a positive data exchange, and how brands can best leverage these factors to their advantage.
The risk of parting with this data needs to be outweighed by the following factors:
- Purpose: The reason the data is being collected.
Will it be used for purposes other than to directly benefit the consumer? If so, they want to know why, and what for.
- Benefits: What consumers will receive in return for the data they are providing. What’s in it for them?
- Trust: The level of confidence and certainty the consumer already has in your brand to safeguard the data they are providing. Have they had a positive experience before?
- Control: The perceived power consumers are giving up. Is there a limit to the amount of data they are required to provide? How is it extracted– volunteered or observed?
- Sensitivity: The main consideration before any data exchange is to understand the sensitivity of the data. The more sensitive the data, the less willing consumers will be to part with it.
The way people feel about data will always be aligned with our five factors of a positive data exchanges. The more positive the exchange of data between brands and consumers, the more likely we are to see what we are seeing in 2018; the data exchange is getting faster and less conscious. This means brands must build much stronger brand associations and memory structures amongst their existing and potential customers to ensure a data-based relationship already has positive connotations.
To do this successfully, brands will need to first understand the needs of people in this data-fuelled reality to create brand experiences that generate brand association around the data relationship.
Read the full report here.