Euromonitor International's latest report explores how consumers are concerned about data collection. Image courtesy of Euromonitor International
By Dianna Dilworth
As more consumers shift their consumption online due to pandemic-related cultural shifts, many are worried about how their data is being used, which is a concern that brands should heed as their business increasingly goes digital.
Only 24 percent of connected global consumers feel in control of their personal information, according to a new report from Euromonitor International. The research revealed that consumers were more concerned with the amount of data a company might have collected about them and how responsibly that information is being managed.
“Some consumers expect brands to tailor products and services to them, but consumers must surrender ever more personal data for such an optimized experience,” Euromonitor said in the report. “This commercial trade-off has become much more top of mind for consumers in recent years, as a result of privacy regulations that have come into effect in developed markets worldwide.
“Companies have been responding to these shifts by aligning their branding to appear more privacy conscious, or launching privacy-orientated products and services.”
Euromonitor is a leading market researcher.
Euromonitor International's digital consumer survey. Image courtesy of Euromonitor International
Fears of data breaches
As consumers spend more time online, their data trail increases and so too does the ability for brands and services to exploit this information to market and curate experiences to consumers.
But while consumers appreciate a personalized experience, many are concerned at what cost these experiences are delivered.
Data breaches and data theft are concerns among consumers who fear that their personal information will fall into the hands of the wrong people.
At the same time, many consumers find it hard to manage their data security.
In fact, 29 percent of connected consumers find it overwhelming to manage security as part of their digital life. Still, they do not necessarily trust companies to manage their data carefully.
“An important question is what entities a consumer should trust when it comes to managing their security needs in the digital era,” the report said.
“Only one-quarter of connected consumers agreed with the sentiment that businesses, not governments, are best equipped to protect consumers in the digital era. This suggests that a majority of connected consumers globally may be looking to governments to protect digital assets and activity.”
And yet most digital data is managed by companies and not governments.
Brands looking to build consumers' trust should consider their customers’ needs and desires for security.
Most consumers are more comfortable with one company handling digital security needs or would prefer to spread their security across several companies to potentially diversify risk.
“Connected consumers were slightly more interested in trusting one company rather than multiple ones with their security needs,” the report said.
Only 45 percent of consumers have used AI or VR, per Euromonitor International's latest report. Image courtesy of Euromonitor International
Emerging tech
Augmented reality (AR) or virtual reality (VR) experiences have become more popular in recent years.
Cosmetics retailers including LVMH-owned Sephora offer AI experiences in apps so that customers can try on make-up at home, and this is likely to increase as health concerns about visiting a physical makeup counter persist.
And yet, 55 percent of connected global consumers have not used AR or VR tech, per the Euromonitor report.
More consumers said they had used VR than AR, but this could simply be a problem of devices: consumers do not own the headsets required for complete VR experiences.
“From a consumer perspective, gaming remains the main avenue for exploration, with three-quarters of connected consumers using these technologies in this way,” the report. “The top commerce use cases are tied to travel, including previewing a holiday destination or taking a tour of a hotel room.”
Voice-enable technology is also on the rise, particularly in North America and Asia Pacific, where increasing ownership levels of voice-enabled devices and the growing sophistication of virtual assistants are building the perfect recipe for brands to engage with consumers via voice.
Interestingly, almost half of consumers use a smartphone for voice services and only 13 percent of connected consumers use a standalone smart speaker to do so. And among those that use these tools on their phones, 45 percent report doing so at least daily.
“While this trend has gained more mainstream attention due to the rapid growth in sales of voice devices, such as Amazon Echo, Google Home and Apple’s HomePod, in recent years, connected consumers indicate that they access voice assistants more frequently on their smartphones,” Euromonitor said in the report.
