A.T. Kearney finds consumers willing to share data--for a price
CHICAGO, June 27, 2019 /PRNewswire/ -- "In our increasingly competitive market environment, the distinction between creating solutions for a vague persona and a real person is the difference between long-term success and failure," said Greg Portell, Lead Partner, Global Consumer Industries & Retail Practice at A.T. Kearney.
Speaking to an audience at Retail X, a colocation of the Internet Retailer Conference & Exhibition, GlobalShop, and RFID Journal LIVE! Retail, Portell said that in the near future, personalization—grounded in data generated by individual consumers and used to create offerings for those individuals—will be the foundation of all consumer-facing businesses.
Portell's remarks reflected the findings of A.T. Kearney's recent 2019 Consumer Data Privacy Survey, which surveyed 1,000 consumers about their attitudes toward data sharing, data selling, and data privacy concerns. "For the first time in the history of commerce, the balance of power between buyer and seller is shifting decidedly—and irrevocably—in favor of the buyer," he said. "And technologically sophisticated consumers—particularly Millennials and members of Gen Z—recognize that the transactional data they generate as they live their lives is their property and that it is of real value to sellers. And nobody gives away anything of value without expecting some reasonable return."
Among the highlights of A.T. Kearney's 2019 Consumer Data Privacy Survey:
When it comes to trusting institutions with their personal data, consumers ranked healthcare providers, privacy protection companies, and financial institutions as the most trustworthy types of companies to share with, and social media, big media, and government organizations as the least trustworthy.
Asked if they were aware of the ways they can monetize their personal data 32% (323 respondents) said yes; 50% said no; and 18% were unsure. Awareness is heightened among younger consumers (18-34) with 42% saying yes.
For 47% of respondents the minimum amount of compensation they would be willing to accept in exchange for various types of data was less than $50, but the weighted average acceptable cost for all data points was $899. The most compensation expected was associated with financial data (38% expect $500 or more); followed by location data (31% stated $500+), and health information (28% stated $500+).
A.T. Kearney believes that true personalization will only occur when consumers find an agent—or data broker—whom they use to address compensation, privacy, and other data sharing concerns. "There are some companies exploring this space," Portell said. "But none have achieved the scale they need to be successful in the long term."
To learn more, read the full report at https://www.atkearney.com/consumer-goods/article?/a/privacy-and-personalization-the-paradox-of-data-in-consumer-marketing
About A.T. Kearney
A.T. Kearney is a leading global management consulting firm with offices in more than 40 countries. Since 1926, we have been trusted advisors to the world's foremost organizations. A.T. Kearney is a partner-owned firm, committed to helping clients achieve immediate impact and growing advantage on their most mission-critical issues. For more information, visit www.atkearney.com.
SOURCE A.T. Kearney
Related Link http://www.atkearney.com
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