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September 2011

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Truth, lies and data privacy

September 2011

There’s a huge amount of buzz right now 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 of Facebook’s Facial recognition system and safety fears over Apple’s iCloud; even the handset manufacturer RIM have come under fire about security issues amid accusations that Blackberry messenger was used to co-ordinate the recent London riots. As Telegraph journalist Neil Tweedie commented, “Technology is being forced upon us and it’s harder to do things without it. You have to assume that everything you do on the internet is leaking out. There should be no assumption of privacy. You should assume that when you are online you are engaging in a public conversation”. In an attempt to understand what consumers actually think about this issue we partnered with Opinion Leader and conducted a combination of focus groups together with five hundred online interviews in both the UK and Germany. The findings are as diverse as they are interesting and have helped us uncover what consumer attitudes to data privacy actually are and who it is we actually trust. It has also helped us define what brands can do to create a more trusted dialogue with consumers around the use of their personal data.

Our research revealed that our private data by and large is considered to be anything pertaining to our basic identity details – address, email, phone number, date of birth, passport – anything we would regard as confidential. As one UK respondent commented, “Basically everything that’s in your phone is personal”. Whom do we trust? Well we tend to trust doctors, lawyers, employers and banks before all other organisations but this is primarily because we believe they have a relevant need for our information. The report has also successfully drawn out some interesting geographical differences. Our study indicates that the Germans are more savvy about guarding their personal information than their counterparts in the UK. It’s fair to say that Germans take a very active stance, it’s a topic they care about, that they want control over and this stands in contrast to the more relaxed attitude of the UK.

Consumer Definition of Private Data

A report compiled by VCCP research by Opinion Leader

VCCP Report Truth, Lies and Data Privacy September 2011

To what extent, if at all, do you feel you get VALUE for the personal information or data you submit to commercial organisations?

What we really think about brands?

The study reveals three immediate and relatively quick fixes: 1. greater guarantees that information won’t be passed on to third parties 2. greater clarity, openness and honesty with what you are doing with customer data 3. give customers more control over what happens to their personal information Today, more than ever, it’s important to recognise that brand reputation is in part also dependent on the levels of satisfaction experienced when you use individuals private data and that this transaction is absolutely powered by the trust an individual has in the Company. This trust needs deepening. As Damon Horowitz, in-house philosopher at Google comments, “we all know about operating systems and transactions but what we really need is a moral operating system and a dialogue.”

For which, if any, of the following reasons do you think organisations ask for your personal data?

When it comes to the broader church of consumers and brands at large there is a general feeling of confusion about data and privacy. Most of us feel quite deprived of any real influence. In fact it’s acknowledged that the changes we’re experiencing in modes of communication have left us feeling rather powerless. As Julie commented; “You tend to forget how much [brands] have and the fact that it was you who gave over the information in the first place. But there’s no other option, it’s not your choice. If you want any type of account with anyone, you have to give everything away, you’re forced into giving all that information before getting anywhere.” Here lies the paradox, in the so called digital era of consumer empowerment, consumers are just not feeling it. In our study this disempowerment shows up as scepticism over the value involved in any data exchange with brands, in fact a third of those interviewed in the study saw no value in giving their data away. The study goes on to reveal the reason why. Consumers feel that brands only use their private data to sell more of their stuff. This is something that consumers don’t want and just don’t need. As UK respondent Greg, 35, points out, “You just get tired of all the sales spam, commercial companies are only looking at you as money. It’s just another offer pushed at us to get more money out of our bank accounts. This does not make me feel valued.” Greg is not unique in highlighting this point. In fact most consumers in the study alluded to a one way megaphone of offers not tailored to their needs or wants. So can we change this? How do we start building more trust into customer relationships?

Of course it can be said that there’s an element of “big is better” going on here but it’s our belief that this trusting attitude is born out of a wider belief system shared by those under thirty; they crave connection, the intimacy of relationships and community involvement. They also know that the only way to actively be part of all of this is to share their personal data. This group is therefore more aware than any other of the value of exchanging personal information.

Without question it is safe to say that the younger you were when you set up your Facebook page the more likely you are to share your data without inhibition or fear.

The younger you are the more data you’re willing to give

What is ‘my personal information or data’?

Across both countries however there is one audience that is less preoccupied by privacy concerns in general and, that is youth.

“ I trust e-Bay, they’ve got the rules and regulations, they’re protected so there’s not so much worry, they’re already established and there’s so many other people using it.” Suzy, 24

German respondents in particular classify images as something to be guarded nearly as closely as their credit card details; perhaps no surprise when you consider their anti-Google stance over Street View this April which in the end left the company unable to expand its reach beyond twenty cities.

Selling you more products/services

Informing you about offers

Spam emails/letters

Personalisation service

Providing better customer care

Adding value to their produce/service

Monitering quality of thier service

None of these

Don’t know

Other

Avoid delays in providing a service when you contact them

VCCP Report Truth, Lies and Data Privacy September 2011

From our study it’s become clear the majority of us don’t perceive any real value exchange in giving away our personal data to brands. But that is predicated on a belief that the use of personal data is there to benefit the brand first and foremost, rather than the consumer. We’re increasingly moving into an era where the consumer will expect personal benefits from personal data. We’ve seen some interesting examples recently; Jimmy Choo was the first brand to use foursquare to check in an object (trainers) at various locations. Those who followed the campaign and were lucky enough to arrive at a venue before the trainers left got to pick a pair in the style and size of their choosing. There’s our own recent work with O2 on Priority Moments which allows customers to participate in exclusive offers based on their location. It’s also worth mentioning Intel’s “Museum of Me”. As Eric Schmidt of Google stated this year, “soon it will be very hard for people to consume something that has not been in some sense tailored for them.”

The new era of dynamic data

We’re in the midst of a global gaming revolution: Reuters predict that, ‘by the year 2012 the global gaming industry will be worth $68m.This growth is being driven by “casual” gamers. Today Zynga alone engages with 250+ million users a month and nowadays the average social gamer profile is a 34 year old woman. What motivates gamers is a desire to gain access to unique experiences. As Tom Chatterfield, author of Fun Inc. comments, “Games are concealed universes or worlds, places that offer people something that they couldn’t get if they weren’t there.’ Games also have an interesting relationship with their players. There’s the implicit understanding between game and gamer that, ‘I’ll give information to you if you give something back.’ This open attitude is necessary in gaming to fuel the constant tick-over that drives ongoing play. As Tom continues to point out, “Gamers don’t tend to mind that their play data is recorded because they see the evidence that this is being used to their benefit, in literally hundreds of updates and improvements.” This obvious optimization of one’s experience via data fuels a new generation of “knowing consumers”, consumers who know exactly what they are trading, and if anything, want to give away ever more data, if it delivers a better experience.

Learning from the gaming revolution So in this new era of dynamic data how can brands

create valuable data dialogues with their customers? The study points towards a new social currency. This currency’s value is retained by following what we are calling:

explain Set out to explain how you intend to use someone’s personal data.

exchange Give something of value back to the consumer quickly, as proof you are using their data to benefit them.

experienceUse personal data, once in a while, to provide something surprising and entertaining: that goes beyond expectations, that continues to build a bond.

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