Credico UK Speaks Out on Why Data Transparency is a Big Hit for Driving Loyalty

In the wake of Facebook’s widely publicised data scandal, Credico UK has warned that consumers are naturally growing concerned about the extent to which brands are monitoring their activity and using their data.

Credico UK: About the company.

Facebook is currently at the centre of an ongoing dispute over allegations it harvested user data without permission. Its claimed that the social media giant allowed elections consultancy Cambridge Analytica to access the psychological profiles of millions of Facebook users via questionnaire app ‘Thisisyourdigitallife’. There are now major concerns that this data was used to influence the outcomes of significant political events in the UK and U.S.

It’s not just users of the ‘Thisisyourdigitallife’ app affected. Due to Facebook’s app permissions at the time, the app was free also to gather data from a user’s friends, meaning as many 87 million Facebook profiles could have been compromised.

Since the news broke, Business Insider Intelligence's 2018 Digital Trust survey revealed 81 percent of users have little to no confidence that the site can protect their data and privacy. As expected, this scandal has had a knock-on effect on all businesses that handle consumer data. Research from IBM this week revealed a staggering 85 percent of consumers feel companies should be doing more to protect their data, with just 20 percent of consumers admitting they fully trust organisations to keep their data private.

Credico UK, an industry leader in field marketing, has concerns this could have a big impact on marketers, as consumers can often feel ‘tricked’ if companies aren’t 100 percent open about their approaches and use of data. It is confident that by adopting complete transparency, brands will be able to increase customer acquisition and retention and secure trust among consumers.

‘In an age where brands are focusing their use of data on personalising brand experiences, it is vital to be open and upfront with consumers. Consumers’ aren’t stupid, and they know coincidences don’t happen in marketing. If you’re targeting them based on a specific interest they have, they are going to want to know how you know that information about them’ warns a spokesperson from Credico UK.

Being transparent about targeting methods has been found to boost brand engagement. A Study by Maritz Motivation Solutions and Harvard Business School found that when shopping online click-through rates increased by 11 percent when consumers knew their browsing history was being used to recommend products. Consumers were also 40% more likely to click on items when told they were recommend based on information they'd shared with a brand.

‘This sends an important message to brands. Consumers understand and accept that their data is being used in some form to personalise their experience, they just want to be told when it is happening.’ Confirms Credico UK’s Spokesperson. ‘In the wake of data concerns, brands need to do more to reach out to consumers and reassure them that this information will not be misused. We believe the cross-channel marketing, and more face to face communication will be vital to explaining these processes and putting consumers’ minds at ease in the coming months’.

Sources:

https://www.cnbc.com/2018/04/10/facebook-cambridge-analytica-a-timeline-of-the-data-hijacking-scandal.html

https://www.techrepublic.com/article/75-of-consumers-wont-buy-your-product-if-they-dont-trust-you-to-protect-their-data/

https://www.marketingdive.com/news/transparent-ad-targeting-boosts-engagement-by-40-study-finds/519812/

http://uk.businessinsider.com/consumers-dont-trust-facebook-at-all-new-survey-data-2018-4