American consumers are taking the privacy of their personal information more seriously — and marketers are planning to invest more protecting user data in the coming year, new research shows. The majority of marketing executives (71%) surveyed in the same study expect their company investments in data privacy to increase this year.
Eighty-four percent of consumers have declined to do business with companies that required too much personal information, according to the study by customer engagement platform Braze. Three out of five consumers surveyed said they have deleted apps from their phones due to privacy concerns.
Why we care
With GDPR and now CCPA, there are real legal and financial incentives for companies to prioritize data privacy. Nearly all marketing executives (94%) included in the study agree that data privacy is imperative. Beyond the legal ramifications, though, marketers see business advantages to proactively enforcing stricter data privacy policies — even before they become law.
Marketers surveyed in the Braze study said that the biggest advantages of proactively applying strict data privacy policies — before they become law — include improved brand perception, higher market valuation, industry leadership, cost savings and being early-to-market.
Indeed, a Capgemini study that looked at business performance after GDPR took effect found that GDPR-compliant organizations had outperformed non-compliant companies by an average of 20%. The research assessed consumer ratings, trust, lead quality, employee morale and overall brand image.
More on the news
- The Braze study also found that 71% of adults indicated that they would accept some form of compensation for their personal data.
- Millennials and Gen Xers are more likely to accept some form of compensation for their personal data than Baby Boomers.
- 99% of marketing executives agreed that companies should explain how customer data is used, and 94% of consumers expect companies to share that information.