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BizReport : Advertising archives : October 16, 2019

Study IDs disconnect between retailers, consumers over data

Concerns about data privacy are high in the minds of both consumers and businesses, but there is a disconnect between the two over just how data can or should be collected, stored, and used. That's a key takeaway from new data out from Deloitte.

by Kristina Knight

According to Deloitte's 2019 US Consumer Data Privacy report nearly half (47%) of US consumers believe they have 'little to no' control over their personal data and most (86%) say they should be able to control how their data is used by companies, including the ability to 'sell off' their data. Just over half (55%) believe brands are sharing their data with third parties. Only about 5% of consumers say that they trust retailers with their personal data.

"With increased scrutiny on consumer and data privacy, there is a call to action to define a new standard that works for consumers and retailers. Future leaders in data privacy should adopt guiding principles that align across the entire organization as an essential part of their strategy, culture and operations," said Rob Goldberg, Cyber Risk Leader - Retail, Wholesale & Distribution, Deloitte & Touche, LLP. "Retailers should work every day to connect with consumers in a way that builds trust, manages legal risk and enables their growth strategy."
Just over half (54%) of US consumers are impacted by privacy acts and other regulatory reasons, which should help in the building of trust between businesses and consumers, but most businesses haven't fully integrated their data collection and strategy planning systems, which could leave consumer data vulnerable. Researchers found that 62% of businesses have at least 50 spreadsheets, customer relationship systems, email lists, and point of sale data sheets on their computer systems.

"While some retailers have moved the bar on data privacy, there is still a lot of work to do. The retail industry should advocate for a consumer privacy standard putting consumer centricity at the core and trust as the guide. Transparency with consumers about what you collect and how you use it can go a long way in developing trust," said Rod Sides, Vice Chair & US Leader - Retail, Wholesald & Distribution, Deloitte & Touche, LLP. "Retailers who focus on consumer privacy as a strategic growth driver are poised to create more meaningful data, enhance consumer engagement and reduce exposure to risk, all while staying ahead of the evolution of privacy in consumer business."

Other interesting findings from the Deloitte report include:

▪ Half of brands use consumer data to increase operational efficiencies, improve product selection, enhance the in-store experience
▪ 63% of consumers say businesses are responsible to protecting their data, a higher percentage that believe the same of government or tech partners

Retailers say their biggest hurdle in implementing consumer privacy is inadequate data management.

Tags: advertising data, consumer data, data privacy, data trends, Deloitte, ecommerce data

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