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Tuesday, Aug 31, 2010 • Posted by Susan Menke
I have been editing the Loyalty Marketing Oxygen report this week (due to publish in September), and it got me thinking about privacy issues and how much has changed in the last year or two.
The Wall Street Journal recently ran a series of articles about how web activity is monitored and used, but the main point was that most consumers don’t know the extent to which companies are gathering information about them – usually to target their marketing efforts more specifically.
In the Loyalty Marketing report, 58% of consumers state that “more relevant or individualized deals” would be one of the top three features that would entice them to participate in a loyalty or rewards program. However, Mintel’s data also shows that consumers are at best conflicted about companies using their personal information. Here are some of the responses that lead me to think that:
• 68% say they “worry that new websites may use my personal information without my knowledge”
• When consumers are asked, “If a company used my personal information to sell me products I would switch to a different competitor that did not use personal information” – a significant number (62%) agree, and another 24% say they don’t know (for a total of 86%)
• 88% say that they “think that my personal information is something that belongs to me, like any other possession”
• 87% see the concept of privacy as meaning “control of my own information”
• 92% see privacy as a “fundamental human right”
There is no doubt that both businesses and consumers can benefit from loyalty programs and advertising that are more specific to what a consumer can actually use. There is nothing more annoying than a constant barrage of ads that have nothing to do with our needs or desires at our current lifestage or situation.
However, consumers feel VERY strongly about their right to privacy, and companies will need to tread very carefully so as to not do major damage to their brands if these behavioral targeting strategies are fully revealed. As the recent situation with Facebook shows us, in the age of Social Media the backlash can be quite sudden and severe.