Research from UnboundID Shows Customers Expect Identity Etiquette from Companies Who Use Their Personal Data
New research released today commissioned by UnboundID, a leading platform provider for identity data, shows that consumers not only value their digital identity, but they also expect companies using that data to exhibit Identity Etiquette.
The survey, conducted by Compass Intelligence, polled over a thousand digital-savvy adults in the United States, Canada and the United Kingdom, and showed that consumers have an explicit idea of the economic value of their digital identity and expect companies to give them something in return for using this personal asset. Results of the survey indicate that customers understand that companies use their digital identity data for marketing purposes — and that most expect some level of etiquette from companies using this data, such as asking for permission to use it. Respondents also expect some form of compensation for the use of this data — cash value in the form of a discount was the most popular benefit cited by respondents (47 percent), followed by value-added services, such as more content or viewing options (22 percent).
“The research shows that 62 percent of customers expect companies to ask permission, in one way or another, before using digital information,” said Steve Shoaff, CEO of UnboundID. “Many of the respondents stated that they would like to determine what, if any, of their data is shared. Giving customers this option is an example of good Identity Etiquette.”
Other examples of the kind of Identity Etiquette customers expect include “responsible use” or “two-way incentives.” “Responsible use” is based on a permission-based, dynamic system that allows customers to determine how much of their personal data and identifying information (such as their behavior on a vendor’s site) is used in external activities — including sale and rental. “Two-way incentives” provide meaningful rewards to customers (e.g., discounts, monetary rewards) when their data is used; 61 percent of respondents said they would be more motivated to give more of their personal and behavioral information if they received some kind of reward.
“Many companies worry that if they give customers the chance to opt out, they will,” said Shoaff. “However these findings indicate that customers really want more control over how and when their data is used. By practicing the right kind of etiquette, companies will ultimately get better, more realistic data from their customers.”
Findings from the Compass Intelligence study show 43 percent of customers say they would “think better of and/or be thankful to companies” that give them control of how their digital information is shared. When asked which Identity Etiquette actions would make them more agreeable, “asking which items can be shared” was the top response (33 percent), followed by “offering a meaningful benefit for data use” (29 percent) and “the ability to update or revoke access to data at any time” (26 percent).
“We’re seeing that there are distinct benefits for companies who practice good Identity Etiquette,” said Kneko Burney, Founder and Chief Strategist of Compass Intelligence. “Improved customer relationships, an overall better view of a company and its brand, and better quality of customer data.”
For more on the Compass Intelligence findings, see an excerpt from the final report here.
About UnboundID Corp.
UnboundID is a leading platform provider for identity data, enabling companies to dynamically manage, protect, and share customer data in real-time across cloud, mobile and social applications. UnboundID solutions help companies increase average revenue per customer while significantly lowering their costs for service and application delivery. UnboundID is a privately held company based in Austin, Texas, and is funded by Silverton Partners and OpenView Venture Partners. For more information, visit www.unboundID.com.
About Compass Intelligence
Compass Intelligence, a global consulting and strategy acceleration firm, specializes in segment and vertical market intelligence for the high-tech and telecom industries; and offers clients a tailored research experience through excellent customer support. Compass Intelligence provides subscriptions and research reports, insight videos, forecasts, competitive analysis, market data and expert recommendations on multiple markets. Visit Compass Intelligence at http://www.compassintelligence.com and http://www.NE2NE.com.
UnboundID is a registered trademark of UnboundID Corp. All other company and product names mentioned are used only for identification and may be trademarks or registered trademarks of their respective companies.
CONTACT: Edelman for UnboundID
Tammy Lee, 650-762-2981
SOURCE: UnboundID Copyright Business Wire 2013