Melissa Gilson, director brand and consumer strategy, and Erryn Balzan, senior consultant, qualitative research, 5D
Here’s something we keep hearing from consumers, across research projects, categories, demographics: “They’ve got everything on me. What do I actually get in return?”
It’s a fair question, because most companies still don’t seem to be aware of the growing expectation – and sense of resignation – consumers have about how their data is being used.
People hand over data constantly, including information about their buying behaviour, location, browsing history, life events, financial decisions and so on.
The growing data imbalance
In most cases, they do it knowingly and optimistically. In return, they get – at best – a generic email or a targeted ad that feels more intrusive than useful.
The imbalance between what people give and what they get in return has been brought into even sharper focus in recent years, as most people are now acutely aware that technology has evolved to the point that a person’s personal data should be working harder for them, not just the companies collecting it.
Consumers’ use of AI has now reached the point where it is setting the standard for how consumers expect companies to use their data.
AI as the new benchmark
It is the new benchmark. If a consumer can use AI to trawl through their finance statements and provide explicit details on where and how to save money, why isn’t their bank doing it for them?
And why isn’t the bank then going further by proactively making recommendations or providing opportunities based on the personal data it has?
If consumers can’t get better, smarter, or more personalised support from the data they know is being given or collected on them, they will inevitably lose trust in the companies that are dealing with it.
Trust is an operational issue
And when trust is lost, it’s very hard to win it back.
Too many organisations still treat trust as a brand attribute, as something measured in tracking studies and managed by the marketing team.
But creating trust is an operational issue. It’s built – or broken – in product design, in CX, and in how brands use (or don’t use) the information already on file.
And it requires the teams collecting, analysing and acting on customers’ data need to be on the same page (in the same room would be even better.)
The danger of resigned compliance
Most people accept the data imbalance because they think they don’t have a choice.
They want the service or product, so they hand over the data, knowing it’s pretty much a one-way exchange.
What we see in our research, repeatedly, is resigned compliance: people sharing data not because they believe something good will come of it, but because opting out feels impossible or pointless.
That’s not a strong foundation for any brand relationship.
Capability, character, and action
People buy from brands based on capability (can this brand actually deliver?) and recommend brands based on character (does this brand act with integrity?).
Trust in how brands handle data sits at the intersection of both of these. Keeping personal data private and protecting it from, for example, cyber attacks is character. Using it well is capability.
Getting both right is what separates the brands people stay with from the ones they simply tolerate, or abandon.
Consumers don’t want promises about their data. They want evidence that sharing it will be worthwhile.
Delivering genuine reciprocity
For example, an insurance company proactively helping customers reach their goals, offering real solutions based on actual behaviour, proactive insurance product suggestions based on the identification of an underinsurance risk, or digital-led advice, tailored specifically to their life stage, goals and risk profile.
These are all suggestions we’ve heard from people in research.
To correct the data imbalance, companies need to be willing to use their customers’ data for the good of those customers, not just to gain a competitive advantage.
Delivering real value from customer data is how brands prove genuine reciprocity and value. Trust earned through action compounds in ways marketing can’t manufacture.
Feature image- Melissa Gilson, director brand and consumer strategy, and Erryn Balzan, senior consultant, qualitative research, 5D