The Smarter Consumer demands personalisation but wont compromise security.
The 4th Annual Smarter Consumer Study released last week continues to deliver interesting insights. The study by the IBM Institute for Business Value surveyed more than 26,000 consumers globally and 1,976 from Australia. While I considered many findings to be worthy of mention, here were three that I found to be most exciting for organisations across all industries working in the business to consumer space:
“40% of Australian respondents stated that they were completely willing to share lifestyle, demographic and media usage information in exchange for something relevant from an organisation.”
9 out of 10 shoppers (globally) are willing to put in time with a retailer to set-up preferences, with the expectation that offers and communications will be personalised.
Australians are less willing than respondents globally to provide identification data such as name and address.
What do these statistics mean?
We know organisations recognise the value of customer data, but now customers are seeing how data adds value to their experiences. Customers understand that by providing their data they will receive better, more personalised and relevant offers. Furthermore, customers are willing to spend time to provide this information with the expectation that it will be used appropriately and to provide them with relevant offers – this is great news for Australian organisations. What isn’t great news is that, while Australians are willing to share some data with organisation, security concerns have reduced their willingness to release private and identifiable data such as their name and address (plummeting from 52% to 26% year on year).
We have data, now what?
A break down often occurs at the point where organisations are required to turn the data provided by customers into personalisation. Organisations lack the capabilities to turn customer insights into relevant offers, promotions and experiences. Don’t abuse your customers goodwill by ineffectively using their data - this is a customer loyalty killer. Customers have provided this data to you with the expectation that you will deliver a personalised experience. Organisations should invest in analytics capabilities that allow them to capitalise on data and drive revenue growth by creating personalised experiences that entice the customer. The clear message from the study was that Australian consumers demand improved security of their data. While customers want to share data they were concerned with its protection. Currently, many organisations take extensive measures to build capabilities that mitigate fraud, yet the same measures are not always developed for data protection. Emphasis needs to be placed on securing data, and these measures need to be made visible to your customers. Security measures encourage your customers to continue to share data with you, providing further opportunity to personalise, target and drive revenue growth.
Data is truly an asset for both the customer and the organisation, capitalise on the data you have now or risk losing customers to organisations that will.
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- Capitalising on Mobile Moments
- Data is driving the customer experience
- Four tips to capitalise on the 'Showroomer'