Consumers around the world are becoming increasingly aware of the value of their personal data and are putting a price tag on it, between $18 to $120. That’s one of the findings of the Aimia Loyalty Lens released last week by Aimia, a data-driven marketing and loyalty analytics company.
The study also reveals that 41 per cent Australians regard their data as “highly valuable”, up from 31 per cent in 2014.
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Aimia interviewed more than 15,000 people in nine countries: UK, Germany, US, Canada, UAE, India, Australia, South Korea and South Africa.
Respondents were asked to put a price on each of the four types of data — contact info, personal info, online behaviour and lifestyle. Australians valued their contact details and their online behaviour as their most valuable data sources.
On average Australians gave the following price list for sharing their data:
- For online behavior such as browsing history and online purchases, Australians valued this at $50;
- Lifestyle information such as hobbies and interests; income, household and occupation information was valued at $35;
- Contact information such as address, email and phone details were valued at $50
- For personal information such as name and date of birth were valued at $30.
Germans and South Koreans put the highest prices on their data, $73 and $120 respectively for contact details and online behaviour.
The value of data is rising: Across all markets, the number of customers who view their data as highly valuable has increased by a third since 2014. The proportion of customers viewing their data as highly valuable has risen to 41 per cent in 2016, from 31 per cent in 2014.
Aimia’s research shows that consumers are often more willing to share their personal information if they understand why information is being taken and how it will be used. For example, 69 per cent were willing to share their mobile number with a company when it was explained why they wanted it, compared to 52 per cent when no context was provided.
At the same time, more than six in 10 customers expect better experiences with companies whom they know hold their data. Seeing data exchange as an integral part of doing business, younger customers place a lower value on their personal data than their older counterparts.
While consumers broadly understand and accept the principle of sharing data in exchange for value. Marketers need to overcome two objections to data sharing: “I have no choice” and “They only reward me for spending money.”
The advice for marketers is to show customers if they share their data they will receive services and experiences with a higher perceived value than the data itself. At the business level, the value inherent in data-driven customer relationships can pull the company out of the downward spiral of price wars.