Consumers resigned to data breaches where value is perceived

The value of personal data and the extent to which consumers permit companies to use their data, is vastly underestimated by consumers. But for many, the value of the services to which consumers consent to their data being used far outweighs any concerns they may have. 

A new two-part series from the User Experience Strategies group at Strategy Analytics, investigating consumer perceptions on privacy, has found that data breaches, misuse of data, and the increased use of personal biometric information for security purposes, is largely seen as part of the cost of the connected world – a cost that consumers are largely resigned to having to make.

Undertaking a series of online focus groups in addition to a web-based survey with consumers in the US and the UK, key report findings include:

° The value of data and the extent to which consumers permit companies to use their data is vastly underestimated, as is their understanding of the actual size of their digital footprint.

° U.S. consumers view their personal data as highly sensitive but did not trust it to be protected. While consumers in the US took more measures to protect their data than those in the UK, this was not consistent with all forms of personal data.

° The impact of GDPR in the UK has made consumers feel that personal data is more or less protected. But as a consequence, fewer UK consumers take active measures to protect their data in case of a breach. Of additional note, US consumers were overwhelmingly in favor of the implementation of GDPR-like protections for their data.

“High profile instances of privacy issues have some impact, but it’s certainly not widespread,” says Chris Schreiner, director, Syndicated Research UXIP and report author. “Even with companies with questionable practices, extensive media coverage of privacy issues and widespread data breaches, consumers are not likely to abandon apps that they see as having value to them.”

Kevin Nolan, vice president, UXIP, adds:“What these high profile privacy issues actually do, such as those with Amazon Alexa and Facebook, is to have an impact on consumer perception. Smart speakers for example are the most affected in this way, with the majority of consumers seeing them as less secure. Having an “Always On” mic is excellent for the user experience, but it is not good for perceptions of privacy. Better communication and control of data is necessary for this to improve.”