# Over two-thirds of consumers do not understand how their data is used Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-01-07 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Consumer Data: The Key to Building Long-Term Brand Meta Description: Discover why 58% of consumers aim for long term brand relationships and how brands must improve personalisation to avoid marketing pitfalls. URL: https://financedigest.com/over-two-thirds-of-consumers-do-not-understand-how-their-data-is-usedhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/tech-7-1736838970168-compressed.jpg) - _Over half (58%) of consumers want long term relationships with brands, but there might be a personalisation pitfall_ - _One in three (33%) consumers saw irrelevant retail offers as the biggest marketing mistakes_ **London 21st November:** As consumers become more aware of their data, its value and how it is used has become a key concern. The latest [APEX report](https://madebychameleon-dot-yamm-track.appspot.com/Redirect?ukey=1FMbax5b24l9h5dHY7RRWnYiu4qETQOn9wJqFxLyMqVA-931363949&key=YAMMID-51277683&link=https%3A%2F%2Fwww.valitor.com%2Freports%2F) from international payments solutions company, [Valitor](https://madebychameleon-dot-yamm-track.appspot.com/Redirect?ukey=1FMbax5b24l9h5dHY7RRWnYiu4qETQOn9wJqFxLyMqVA-931363949&key=YAMMID-51277683&link=https%3A%2F%2Fwww.valitor.com%2F), reveals the key marketing challenges brands will face in using customer data to build relationships. With more than half of consumers (58%) indicating they want to build long-term relationships with brands, [brands have so far been failing to deliver the personalisation customers](https://www.financedigest.com/how-brands-can-adapt-marketing-tactics-to-better-suit-customers-changing-shopping-habits.html "How brands can adapt marketing tactics to better suit customers’ changing shopping habits") expect. In fact, the report found that a third of consumers view irrelevant retail offers as the biggest marketing [mistake made](https://www.financedigest.com/tripling-the-size-of-my-business-in-the-pandemic-the-mistakes-made-and-lessons-learned.html "Tripling the Size of my Business in the Pandemic — The Mistakes Made and Lessons Learned") by brands, and almost half (48%) think when it comes to relationship ‘building’, all they see after-sale are spam emails. Personalisation across the board does not meet expectations. Over two-thirds of consumers (68%) do not know how their [data is being used by brands](https://www.financedigest.com/byd-set-to-be-chinas-top-selling-car-brand-for-nov-tesla-gains-data.html "BYD set to be China’s top-selling car brand for Nov, Tesla gains -data"). This knowledge gap, combined with the implementation of GDPR and the ongoing discussions of data being used in political discussions, has spiked [consumer interest in data](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") use and privacy. However, while interest has increased, the actual use of data by brands is [creating uncertainty](https://www.financedigest.com/banning-russian-aluminium-would-create-uncertainty-about-lmes-role-rusal.html "Banning Russian aluminium would create uncertainty about LME’s role -Rusal"), confusion and setting unachievable expectations about the sort of interactions customers should expect. “The [latest APEX report](https://www.financedigest.com/listen-care-share-ofwats-latest-report-on-the-water-industrys-handling-of-customers-during-the-pandemic.html "Listen, Care, Share: Ofwat’s latest report on the water industry’s handling of customers during the pandemic") reveals that consumers want a long term relationship with brands, which is clearly an opportunity that needs to be pursued. To succeed in establishing relationships, brands need to show customers that by having their data, they are able to create the long [term value](https://www.financedigest.com/benign-positional-vertigo-treatment-market-is-pegged-to-witness-sound-growth-in-terms-of-value.html "Benign Positional Vertigo Treatment Market Is Pegged To Witness Sound Growth In Terms Of Value") they crave. Currently, though many consumers feel brands’ efforts are missing the mark, which is risking weakening customer retention” said Halldór Lúðvígsson, [Managing Director](https://www.financedigest.com/tmwi-appoints-steve-hadfield-as-managing-director-as-the-agency-readies-itself-for-further-growth.html "tmwi appoints Steve Hadfield as Managing Director as the agency readies itself for further growth"), Omni-channel solutions at Valitor. **Embracing** [data and privacy](https://www.financedigest.com/how-to-navigate-multiple-data-privacy-regulatory-frameworks.html "How to navigate multiple data privacy regulatory frameworks") The good news for brands, however, is that consumers are still happy to provide them with personal data, as long as it is used in the right way. In fact, 75% of [consumers are comfortable with the concept of a brand holding personal information in order to improve the services](https://www.financedigest.com/do-consumers-want-robo-advisory-services.html "DO CONSUMERS WANT ROBO-ADVISORY SERVICES?") and relationship. Consumers also revealed that they are most willing to share [email addresses](https://www.financedigest.com/how-to-create-a-professional-email-address.html "How to Create a Professional Email Address") (42%), followed by clothing size (29%). But in order to [keep consumers](https://www.financedigest.com/keeping-up-with-heightened-consumer-expectations-in-financial-services.html "Keeping up with heightened consumer expectations in financial services") happy, brands need to ensure that they use this data wisely if they are to encourage the sharing of more types of information. **The [impact on the customer](https://www.financedigest.com/impact-com-fiscal-year-h1-2021-1-5b-valuation-150m-in-funding-bigcommerce-integration-69-customer-growth.html "impact.com Fiscal Year H1 2021: .5B Valuation, 0M in Funding, BigCommerce Integration, 69% Customer Growth") relationship** The outdated practice of getting data and then taking a “spray and pray approach” has clearly had [negative effects](https://www.financedigest.com/negative-effects-of-technology.html "Negative effects of technology") on consumers. For example, over a third (34%) of [consumers say](https://www.financedigest.com/u-s-consumers-inflation-expectations-highest-in-8-years-ny-fed-says.html "U.S. consumers’ inflation expectations highest in 8 years, NY Fed says") that they have been made to feel like a brand no longer wants to impress them once they have parted with their money. Another third (33%) aren’t convinced brands still [care about them after the sale](https://www.financedigest.com/demand-from-personal-care-and-cosmetic-products-will-boost-vegan-wax-market-sales.html "Demand From Personal Care And Cosmetic Products Will Boost Vegan Wax Market Sales") is done. While a quarter (25%) highlight the fact that occasional offers are not the same as a proper [customer service](https://www.financedigest.com/how-customer-services-has-changed-during-covid.html "How Customer Services Has Changed During Covid") relationship. Lúðvígsson explains, “In a world where people are increasingly sceptical about [sharing data](https://www.financedigest.com/global-shares-slide-dollar-gains-as-rates-rise-on-strong-data.html "Global shares slide, dollar gains as rates rise on strong data"), brands must look to be open and transparent about why they want it, how they keep it safe and why it is good for the consumer. Then they [need to put these words into actions](https://www.financedigest.com/new-uk-pm-will-need-to-take-urgent-action-on-energy-bills-ofgem-ceo.html "New UK PM will need to take urgent action on energy bills – Ofgem CEO") and give their customers an actual personalised experience. A one size fits all approach, simply doesn’t work. The dangers of this are quite clear with [recent research](https://madebychameleon-dot-yamm-track.appspot.com/Redirect?ukey=1FMbax5b24l9h5dHY7RRWnYiu4qETQOn9wJqFxLyMqVA-931363949&key=YAMMID-51277683&link=https%3A%2F%2Fwww.valitor.com%2Fwp-content%2Fuploads%2F2019%2F05%2FValitor-Apex-Report-May-2019-low.pdf) highlighting that a bad experience will see 47% of customers not shop at a store again. “For brands to succeed they need to embrace [data and privacy](https://www.financedigest.com/power-to-the-people-how-consumers-are-calling-the-shots-when-it-comes-to-data-privacy.html "Power to the people: how consumers are calling the shots when it comes to data privacy"), redefine the data journey and ensure there is a full relationship cycle. Get this right and the pitfalls of privacy and personalisation can be avoided.” “In such challenging times for brands, bad customer [experiences](https://www.financedigest.com/the-next-generation-of-customer-experience-in-banking.html "The next generation of customer experience in banking") often lead to losing customers. Gartner has predicted that by 2020, poor customer experiences will destroy 30% of [digital business](https://www.financedigest.com/five-ways-businesses-can-prepare-themselves-for-the-digital-economy-be-kaler-pilgrim.html "Five ways businesses can prepare themselves for the digital economy – Be Kaler Pilgrim") projects. Our own research highlights that bad experiences will not only destroy [business projects](https://www.financedigest.com/fluid-coolers-market-by-covid-19-impact-analysis-volume-and-value-revenue-business-opportunity-future-projections-and-key-trends.html "Fluid Coolers Market By Covid-19 Impact Analysis – Volume And Value, Revenue, Business Opportunity, Future Projections, And Key Trends") but increase the likelihood of customer churn and negative word-of-mouth by up to 10 times. Now, more than ever, this is very bad news for any brand. Managers need to take a long and hard look at how they are treating customers during their entire journey and rapidly [turn these bad feelings around](https://www.financedigest.com/can-crowdfunded-property-turn-rundown-neighborhoods-around.html "Can crowdfunded property turn rundown neighborhoods around?"). Failure to do so could be catastrophic,” states Prof. Dr. Phil Klaus, Professor of [Customer Experience Strategy](https://www.financedigest.com/the-value-of-customer-centricity-to-c-suite-financial-strategy.html "The value of customer-centricity to C-Suite financial strategy") and Management at the International University of Monaco. More [key stats from the report:>](https://www.financedigest.com/prefabricated-homes-market-report-2021-by-global-key-players-types-applications-countries-market-size-forecast-to-2029.html "Prefabricated Homes Market Report 2021 By Global Key Players, Types, Applications, Countries, Market Size, Forecast To 2029") [Prefabricated Homes Market Report 2021 By Global Key Players, Types, Applications, Countries, Market Size, Forecast To 2029](https://www.financedigest.com/prefabricated-homes-market-report-2021-by-global-key-players-types-applications-countries-market-size-forecast-to-2029.html "Prefabricated Homes Market Report 2021 By Global Key Players, Types, Applications, Countries, Market Size, Forecast To 2029") - [The 18-35 age group is far more confident in their](https://www.financedigest.com/prefabricated-homes-market-report-2021-by-global-key-players-types-applications-countries-market-size-forecast-to-2029.html "Prefabricated Homes Market Report 2021 By Global Key Players, Types, Applications, Countries, Market Size, Forecast To 2029") [understanding of how brands use their data](https://www.financedigest.com/understanding-the-realities-of-payment-data-monetisation.html "Understanding the realities of payment data monetisation") (18-25 were 40%; 26-35 were 43%) compared to the 66+ age group (19%). - 44% of consumers take notice of [marketing communications](https://www.financedigest.com/optical-satellite-communication-market-emerging-trends-to-boost-the-global-revenue-growth-discussed-in-a-new-market-research-report-by-tmr.html "Optical Satellite Communication Market – Emerging Trends to Boost the Global Revenue Growth Discussed in a New Market Research Report by TMR") from a brand: - 56% take notice of emails - 46% notice free samples/trials - 52% of 18-25 [years – the highest](https://www.financedigest.com/uk-inflation-hits-40-year-record-highest-in-g7.html "UK inflation hits 40-year record, highest in G7") proportion of all age groups (and the emerging customer base for many brands) – are receptive to messaging from brands. - The oldest consumers, 56-65 and 66+ are the least likely to [pay attention](https://www.financedigest.com/why-should-investors-be-paying-more-attention-to-open-source-software.html "Why should investors be paying more attention to open source software?") to brand marketing. --- This blog is powered by Superblog. 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