What should brands give in return for the data exchange?

Brands are at risk of losing the trust of consumers over the exchange of personal data, according to research from Microsoft. So, what can be done to claw back confidence among consumers in the new age of online relationships?

The Value Me research uncovered a sharing gap – a 25% difference between what consumers consciously share, and the types of data they believe brands collect anyway, without their explicit consent.

The study identifies differences in the types of personal data consumers are willing to share, with personal information such as their date of birth and address (57%) and basic demographics such as age (50%) topping the list.

The research, part of Microsoft Advertising’s bi-annual Digital Trends report, signal to changing consumer expectations around what they get in return for personal data and how they define value.

Cash rewards are top of the list (61%) while loyalty points for services and products also ranked as highly desirable (59%).

However ‘value’ doesn’t just take monetary form, with 25% of consumers willing to exchange their data for a more connected and simplified lifestyle, alongside automated processes (27%).

Over a third (37%) of respondents say companies should offer services for free when data is collected, whilst nearly a third (32%) would try a new data-powered service, yet see more ads in return.

A quarter (28%) of respondents would opt for more information about them to be shared, in place of paying for services.

Owen Sagness, UK General Manager for Microsoft Advertising and Online says: “Data is rapidly becoming a fundamental currency for brand-consumer relationships, with those in the know demanding more from brands in return for use of their personal information.

“Agencies and brands must commit to respecting boundaries and focusing on using data responsibly to deliver thoughtful experiences to consumers. Those brands that negotiate a better informed and more willing basis for data exchange will succeed in building stronger loyalty and engagement.”