US consumers don’t feel there are benefits to data-sharing economy

Tech

Only 7.6% of US consumers feel they get the benefits of user tracking behavioural data, as research demonstrates pessimism towards the digital economy.

The reason companies want to track existing or potential customers, while also collecting insight on these individuals, is simple; it is simpler to sell goods and services to someone you know more about. But, in order to do something for free, you have to offer a benefit. This equation does not seem to be balanced currently.

Research from AI firm Cujo suggest 64.2% of the surveyed consumers do not believe tracking is beneficial to the user, while only 28.2% said it could be. A meagre 7.6% believe they get the benefits of tracking.

If users do not see the benefits of tracking and personalisation, there will be resistance and push-back against these practices. Data and insight is being touted as a central cog of new business models, but these strategies will fail if the consumer is not brought forward on the same mission.

Sentiment is clearly moving against data collection, so much so that 61.9% of respondents to the survey would be happy to be tracked less even if personalization was affected.

The question is what service is being provided by tracking users and collecting data?

Google clearly tracks users though the benefits emerge in several different ways. For example, more accurate results are shown when using the search engine, or more favourable restaurants are show on the mapping services. This is a benefit for the user, while also making money.

Netflix is another example where the benefits are clear. The recommendation engine will help customers navigate through the extensive back catalogue, theoretically, while understanding consumer behaviour will also inform decisions on what content is created in the future.

These are logical applications of data insight, something which the user can see benefits from though they might not appreciate them. However, the larger issue is with the majority who collect data but there is no obvious reason as to why or where the benefits are.

For the most part, this might be viewed as a security risk, an unnecessary ‘transaction’ to make, and considering the security credentials of the majority, the consumer is right not to place trust in these organisations.

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