Sharing data: make it hard for them to say no
by Mark Brennan
Use data to remove friction.
Not being able to find one specific thing in a supermarket can be a nightmare.
What should be a simple task can take ages. There are too many aisles, too many shoppers and no one around to point me in the right direction.
We now live in a world where we expect apps to benefit us in some way. From the convenience of being able to record TV programmes from your phone to searching the best restaurant vouchers in your local area, there are a range of services we now have instant access to. These services would not be possible without us users sharing our data.
Quite often, consumers are hesitant to share their data. There are privacy concerns and many fear their data will be misused.
A study by LoyaltyOne revealed that 78% of consumers don’t believe they gain anything from sharing their information and an Accenture study found that 86% of consumers said they were concerned that their data was being tracked.
Brands need to be fully aware of these barriers and be transparent when asking consumers to share their data. The Accenture study found that although there were data tracking concerns from consumers, the majority were willing to have trusted retailers use some of their personal data in order to present personalised and targeted services, products, recommendations and offers.
Looking back at the supermarket example, there are various business benefits to creating such an app. The business will be able to optimise their stock, understand the value of its customers and gain customer loyalty through creating a digital loyalty programme. To make these customers share their data, which is of great value to the business, the customer benefits need to be clearly stated. If the customers believe that in exchange for their data they’re receiving something of equivalent or greater value, it will make it much harder for them to say no.
Mark Brenan is Data Strategist at Jam.