The Privacy Paradox: How Personal Information Has Become the Most Guarded, and Shared Currency
TORONTO, Sept. 18, 2012
TORONTO, Sept. 18, 2012 /CNW/ - LoyaltyOne released today research
findings that show when it comes to privacy, Canadian consumers are
still protecting some of their data, yet willingly sharing some very
Of the 1,000 Canadian consumers responding to an online survey, four in
10 said they'd be willing to give a trusted company their religious
affiliation and sexual orientation (41 and 40 per cent respectively).
Health information and political affiliation is also being shared with
businesses (31 and 30 per cent respectively), but we're much more
guarded about our location information. Just 22 per cent of respondents
said they would provide browsing information and a mere 16 per cent
would give up location via smart phone.
So sensitive is location information that the willingness to give it up
is on par with willingness to divulge number of sexual partners (12 per
"When it comes to the use of data, brands need to act like a great hotel
concierge: able to provide suggestions that hit the mark every time
without being overbearing or creepy," said Bryan Pearson, President of LoyaltyOne and author of The Loyalty Leap: Turning Customer Information Into Customer Intimacy. "There's a fine line between demonstrating you understand a customer
and making them uncomfortable with the level of information you have
Open for Business: Why Consumers are Unlocking the Gate to their
Canadians are considerably less likely than Americans to believe that
companies exchange their personal information without permission, (72
per cent versus 84 per cent), but the value exchange has yet to be
fully realized. Only about half (55 per cent) of Canadians feel
companies send them relevant information, products and services based
on what these companies know about them. And nearly two-thirds (68 per
cent) would be willing to give more personal information if companies
sent them relevant offers based on what they have shared. Canadian men,
more so than women, believe their personal information is an asset for
marketers (79 vs. 69 per cent).
"Marketers' efforts to create relevant customer experiences through data
may not be resonating to the degrees that they hope," said Pearson.
"Consumers are disappointed. For years they've provided their valuable
information and they're not realizing something of suitable worth in
return. If businesses don't act quickly to demonstrate they have the
consumer's best interest at heart, they risk a continued erosion of the
Privacy under the Microscope: The US/Canada Perspective
Almost a third of respondents in the US and Canada (30 per cent) have
been notified that their personal information has been stolen or
Almost half (48 per cent) always or often read the privacy policies,
contracts and agreements from companies they do business with.
Six in ten (59 per cent) said unacceptable for a retailer to send offers
and information to the person's smartphone whenever they are near the
retailer's location after permission is given to track their GPS
Despite the unwillingness to share location information, more than 25
per cent of survey takers would give up their whereabouts for a chance
to win an iPad or weekend getaway; cash would entice more than half.
Seven in ten (71 per cent) said it's not acceptable to send baby food
offers to someone who had merely purchased a pregnancy test.
About the Report
The results are summarized in the report, Customer Data - Privacy, Profit and the New Paradigm commissioned by LoyaltyOne, a global provider of coalition loyalty,
customer analytics and loyalty services, completed online surveys in
July 2012 with 1,000 U.S. and 1,000 Canadian consumers. The research is
designed to test consumer attitudes about personal data collection and
use by marketers. Statistical significance is calculated at the 95%
confidence level. The report is available at http://loyalty.com/knowledge/articles/2012-privacy-research. Pearson will lead a free webinar based on the report on October 10 at
1 p.m. Eastern. To register https://loyaltyevents.webex.com/loyaltyevents/onstage/g.php?t=a&d=667384142.
LoyaltyOne is a global leader in the design and implementation of
coalition loyalty programs, customer analytics and loyalty services for
Fortune 1000 clients around the world. LoyaltyOne's unparalleled track
record delivering sustained business performance improvement for
clients stems from its unique combination of hands-on practitioner
experience and continuous thought leadership. LoyaltyOne has over 20
years history leveraging data-driven insights to develop and operate
some of the world's most effective loyalty programs and
customer-centric solutions. These include the AIR MILES Reward Program,
North America's premier coalition loyalty program and a working
partnership with Latin America's leading coalition program, dotz.
LoyaltyOne is also the equity partner of Direxions, a loyalty pioneer
headquartered in India and the owner of COLLOQUY, a group dedicated to
research, publishing and education for the global loyalty industry.
LoyaltyOne is an Alliance Data company. For more information, visit www.loyalty.com.