In a digital world where nothing remains private, here's what consumer research revealed on what consumers think about the topic of data privacy. I was very pleased to have the opportunity to co-author the piece, the first VCCP thought leadership paper.

1. 1
September 2011

2. Truth, lies and There’s a huge amount of buzz right now
data privacy
about the safety of our own personal data.
And sometimes it seems that the very
organisations associated with creating
the technical revolution and putting
technology in the hands of consumers
are the very same organisations that
are rather laissez-faire in their attitudes
towards our personal information.
Over recent months we’ve been subjected to the hullabaloo Consumer Definition of Private Data
of Facebook’s Facial recognition system and safety fears
over Apple’s iCloud; even the handset manufacturer RIM Our research revealed that our private data by and large
have come under fire about security issues amid accusations is considered to be anything pertaining to our basic identity
that Blackberry messenger was used to co-ordinate the details – address, email, phone number, date of birth,
recent London riots. As Telegraph journalist Neil Tweedie passport – anything we would regard as confidential.
commented, “Technology is being forced upon us and it’s As one UK respondent commented, “Basically everything
harder to do things without it. You have to assume that that’s in your phone is personal”.
everything you do on the internet is leaking out. There should
be no assumption of privacy. You should assume that when Whom do we trust? Well we tend to trust doctors, lawyers,
you are online you are engaging in a public conversation”. employers and banks before all other organisations but
this is primarily because we believe they have a relevant
In an attempt to understand what consumers actually think need for our information.
about this issue we partnered with Opinion Leader and
conducted a combination of focus groups together with The report has also successfully drawn out some interesting
five hundred online interviews in both the UK and Germany. geographical differences. Our study indicates that the
The findings are as diverse as they are interesting and have Germans are more savvy about guarding their personal
helped us uncover what consumer attitudes to data privacy information than their counterparts in the UK. It’s fair to
actually are and who it is we actually trust. It has also say that Germans take a very active stance, it’s a topic
September 2011 helped us define what brands can do to create a more they care about, that they want control over and this
A report compiled by VCCP trusted dialogue with consumers around the use of their stands in contrast to the more relaxed attitude of the UK.
research by Opinion Leader
personal data.

3. German respondents in particular classify images as What we really think about brands?
“
For which, if any, of the following reasons do you
something to be guarded nearly as closely as their credit I trust e-Bay, they’ve got the rules and think organisations ask for your personal data?
card details; perhaps no surprise when you consider their When it comes to the broader church of consumers and
anti-Google stance over Street View this April which in the
regulations, they’re protected so there’s Selling you more products/services
brands at large there is a general feeling of confusion about
end left the company unable to expand its reach beyond not so much worry, they’re already data and privacy. Most of us feel quite deprived of any real
Informing you about offers
twenty cities. established and there’s so many influence. In fact it’s acknowledged that the changes we’re
Spam emails/letters
”
Personalisation service
other people using it. Suzy, 24 experiencing in modes of communication have left us Avoid delays in providing a service
when you contact them
feeling rather powerless. As Julie commented; “You tend Providing better customer care
What is ‘my personal information or data’? to forget how much [brands] have and the fact that it was Adding value to their produce/service
you who gave over the information in the first place. But Monitering quality of thier service
there’s no other option, it’s not your choice. If you want Other
any type of account with anyone, you have to give everything None of these
Of course it can be said that there’s an element of “big away, you’re forced into giving all that information before Don’t know
is better” going on here but it’s our belief that this trusting getting anywhere.” Here lies the paradox, in the so called
attitude is born out of a wider belief system shared by digital era of consumer empowerment, consumers are just
those under thirty; they crave connection, the intimacy of not feeling it.
relationships and community involvement. They also know The study reveals three immediate and relatively quick fixes:
that the only way to actively be part of all of this is to share In our study this disempowerment shows up as scepticism
their personal data. This group is therefore more aware than over the value involved in any data exchange with brands, 1. greater guarantees that information won’t be passed on
any other of the value of exchanging personal information. in fact a third of those interviewed in the study saw no value to third parties
in giving their data away. The study goes on to reveal the
2. greater clarity, openness and honesty with what you are
reason why. Consumers feel that brands only use their
doing with customer data
To what extent, if at all, do you feel you get VALUE private data to sell more of their stuff. This is something
Across both countries however there is one audience that for the personal information or data you submit to that consumers don’t want and just don’t need. As UK 3. give customers more control over what happens to their
is less preoccupied by privacy concerns in general and, commercial organisations? respondent Greg, 35, points out, “You just get tired of all personal information
that is youth. the sales spam, commercial companies are only looking
at you as money. It’s just another offer pushed at us to get Today, more than ever, it’s important to recognise that
more money out of our bank accounts. This does not make brand reputation is in part also dependent on the levels of
me feel valued.” satisfaction experienced when you use individuals private
The younger you are the more data and that this transaction is absolutely powered by the
data you’re willing to give Greg is not unique in highlighting this point. In fact most trust an individual has in the Company. This trust needs
consumers in the study alluded to a one way megaphone deepening. As Damon Horowitz, in-house philosopher at
Without question it is safe to say that the younger you Google comments, “we all know about operating systems
of offers not tailored to their needs or wants. So can we
were when you set up your Facebook page the more likely and transactions but what we really need is a moral
change this? How do we start building more trust into
you are to share your data without inhibition or fear. operating system and a dialogue.”
customer relationships?
September 2011 VCCP Report Truth, Lies and Data Privacy

4. Learning from the gaming revolution The new era of dynamic data
We’re in the midst of a global gaming revolution: Reuters From our study it’s become clear the majority of us So in this new era of dynamic data how can brands
predict that, ‘by the year 2012 the global gaming industry don’t perceive any real value exchange in giving away our create valuable data dialogues with their customers?
will be worth $68m.This growth is being driven by “casual” personal data to brands. But that is predicated on a belief The study points towards a new social currency.
gamers. Today Zynga alone engages with 250+ million that the use of personal data is there to benefit the brand This currency’s value is retained by following what
users a month and nowadays the average social gamer first and foremost, rather than the consumer. We’re we are calling:
profile is a 34 year old woman. increasingly moving into an era where the consumer will
What motivates gamers is a desire to gain access to
expect personal benefits from personal data. We’ve seen
some interesting examples recently; Jimmy Choo was the explain
unique experiences. As Tom Chatterfield, author of Fun Inc. first brand to use foursquare to check in an object (trainers) Set out to explain how you intend
comments, “Games are concealed universes or worlds, at various locations. Those who followed the campaign to use someone’s personal data.
places that offer people something that they couldn’t get and were lucky enough to arrive at a venue before the
if they weren’t there.’ trainers left got to pick a pair in the style and size of their
Games also have an interesting relationship with their
choosing. There’s our own recent work with O2 on Priority
Moments which allows customers to participate in exchange
players. There’s the implicit understanding between game exclusive offers based on their location. It’s also worth Give something of value back to the
and gamer that, ‘I’ll give information to you if you give mentioning Intel’s “Museum of Me”. As Eric Schmidt of consumer quickly, as proof you are
something back.’ This open attitude is necessary in Google stated this year, “soon it will be very hard for using their data to benefit them.
gaming to fuel the constant tick-over that drives ongoing people to consume something that has not been in
play. As Tom continues to point out, “Gamers don’t tend to some sense tailored for them.”
mind that their play data is recorded because they see the
evidence that this is being used to their benefit, in literally experience
hundreds of updates and improvements.” Use personal data, once in a while,
to provide something surprising
This obvious optimization of one’s experience via data fuels and entertaining: that goes beyond
a new generation of “knowing consumers”, consumers who expectations, that continues to build
know exactly what they are trading, and if anything, want a bond.
to give away ever more data, if it delivers a better experience.
September 2011 VCCP Report Truth, Lies and Data Privacy

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