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hen consumers get to the cash register or checkout screen, they
are increasingly asked to disclose personal information. Studies
show that even people who harbor privacy concerns are willing
to provide personal details to a company.
Indeed, most consumers realize they’re being tracked when they surf corporate
websites, research shows, believing it’s just a part of doing business online. A large
survey in 2015 of consumers in the U.S., the U.K., Canada, France, and India
found that 75 percent of respondents were willing to hand over personal details to
a company in exchange for a product or service they valued, especially if they
trusted the brand.
However, several more recent high-profile security breaches have rattled
some consumers and lawmakers, triggering calls for stricter legislation on how
consumer information is used and stored.
In an era in which good customer data offers a clear business advantage, how
should firms communicate with customers whose data they seek? The authors of
a new study set out to answer that question. They reviewed research on consumer
privacy issues, legislation, and best practices at firms around the world, looking at
mistakes made and lessons learned. The study concluded that successfully handling
client data comes down to three Ts: trust, transparency, and type of data.
Tr u s t. The more consumers trust a firm, the less they worry about sharing Illustration^ by^ James^Yang148
The three Ts of
handling consumer data
Customers give personal information to companies that are careful
about trust, transparency, and the type of data they request.
BY MATT PALMQUIST