Is Privacy Dead? Not Yet.
As the IoT market expands, customer privacy must remain a top priority.
The Internet of Things is working its way into every facet of our lives. In 2016, 80 million smart home devices were delivered worldwide (a 64% increase from 2015). In 2017, Amazon announced Alexa for Business — and competitors came hot on its tail, announcing their own smart office accessories. By 2020, it’s forecast that there will be more than 250 million smart cars on the road. As IoT proliferates, personal data is being collected at unprecedented levels — everything from where you are (location services) to what you’re interested in (online browsing). And with all of this rich data to pull from, digital advertising revenues are reaching record highs.
At the same time, studies show that consumers are increasingly concerned about online privacy, fed in part by a steady stream of news stories about high-profile security breaches (the latest being Facebook’s Cambridge Analytica scandal). A recent survey from Verint Systems Inc. showed that 80% of consumers appreciate the convenience of the personalized ads and services that big data allows — but an even higher percentage say it is absolutely vital that their personal information be kept secure.
Despite these numbers, there’s no shortage of articles claiming that millennials — the largest generation in the United States — don’t care about data privacy. But it would appear that the real story is more complex. According to Gallup, “Millennials conduct their business in an age where personal information is currency.” As long as they’re getting something worthwhile in return — relevant ads or personalized sales, for instance — millennials appear to be at peace with handing over their personal information.
What, then, to make of the popularity of “ephemeral” apps and services like Snapchat or Instagram stories, where posts vanish shortly after being shared, leaving no trace behind? Younger generations may believe that their personal information is safe, but that doesn’t mean they don’t take precautions when they share — they might just be going about it differently than the generations that came before. Rather than fighting the world they live in, they are learning to adapt to it.
Today’s consumer values honesty and transparency, and in order to market a brand effectively, businesses must work to build genuine trust with their clientele. There are plenty of tools that marketers can use to reach their targets, and customer loyalty can be nurtured in many ways — from a “no-questions-asked” return policy or a great rewards program to a kooky social presence (lookin’ at you, @MoonPie). But none of that matters unless safeguarding customer privacy is one of your key pillars. Some people will freely give over their info, while others may be more reticent — but ALL will quickly become ex-customers if their privacy is breached.
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Header illustration by Steven Barker.
