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PrivacyEra TheCustomerView PDF
PrivacyEra TheCustomerView PDF
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WUNDERMAN THOMPSON 2
CONTENTS
5 INTRODUCTION
7 KEY HIGHLIGHTS
8 Americans are concerned.
11 5G is only going to amplify concerns.
14 People are stuck.
16 Customers are conflicted.
19 Regulations barely register with customers.
22 The new PII: Personally Intimate Information.
25 Responses to a breach.
28 Penny for your thoughts?
31 Digital Devices vs Digital Self.
33 Not all industries win the same customer trust.
35 Data security: The great unifier.
38 Methodology
38 About Wunderman Thompson
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FOREWORD
Privacy in the Time of COVID-19
This perfect privacy storm reveals much to consider: Should we be so quick to sacrifice
Rachel Glasser, Chief Privacy Officer
data privacy in the time of COVID-19 or any other emergency? Do we even know
Wunderman Thompson Data
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INTRODUCTION
The Behavioral Economics principle known
as the Availability Heuristic tells us that people have a
tendency to overly focus their attention and color their thinking
based on what is most present in their mind, which is usually the result
of what they have most recently heard about, especially those things
they’re hearing about with a high frequency. If that’s the case, then why
are we talking about data privacy and data security? Shouldn’t we be talking
about COVID-19, protests against racial injustice, and the upcoming presidential
election? Those are clearly the topics that are most “available” to anyone in the US
today.
We’d argue that data privacy and data security are intimately linked and intertwined
with all of these “available” topics. While the US has certainly experienced pandemics,
of electronic voting results and campaign rallies ( just look at the alleged
civil unrest, and a divided, contentious political environment before, we haven’t had
disruption of the Trump campaign’s Tulsa, Oklahoma, rally by a movement
these experiences with a deeply reliant digital populace. And with that brings numerous
started on TikTok). With that backdrop, I’d say that now -perhaps more
issues related to data security and data privacy.
than at any time in our history–is the exact right time to examine data
privacy and data security.
With regards to the pandemic, there are privacy concerns about contact tracing, tools
being used to assist with social distancing, telemedicine visits, analyses of health
So welcome to Wunderman Thompson Data’s inaugural report on data
conditions, and concerns related to remote working such as insecure home WiFi set-
privacy and security. This new research comes at a critical moment for
ups, companies tracking employee productivity, and even Zoom-bombing and the
brands and their customers, as well as society at large. For years, data has
security of video meeting platforms. With respect to protests against racial injustice,
been collected en masse with the mutual understanding that it needed to
there are data concerns about government surveillance of protesters, the accuracy
be valued, secured, and used to provide better experiences.
and application of facial recognition software, the use of drones and police with facial
recognition software, governments scraping social media for protest organizing, and
Unfortunately, as multiple data breaches have shown, companies and
police using body-worn digital technologies to intercept organizer communications.
institutions are not always the best stewards of our personal information,
And with a severely divided populace about to vote for president, there are concerns
and it can be difficult for people to see the benefit of allowing them to have
about disinformation and fake news, foreign government election intervention, election
it. To gain a better understanding of the situation and how it is affecting
commission and campaign database hacking, voter authentication, and manipulation
people and their behaviors, Wunderman Thompson Data undertook
a survey in late 2019 of 1,500 US adults aged 18 and over.
WUNDERMAN THOMPSON 5
The top-line results are both insightful and alarming. Overall,
the research showed that people are highly concerned about the
privacy and security of their data. In fact, only healthcare ranked higher
on their list of worries. At the same time, Americans are paralyzed about what
to do about the situation. They are unaware of regulations designed to protect
them, and they feel helpless and overwhelmed.
In the following pages, you will find the customer view data privacy and security, with
detailed results, insights, and ways brands can address their concerns and, hopefully,
move toward a much more data-safe, transparent, and confident environment.
Be sure to check out Wunderman Thompson’s The Privacy Era: The Brand Implications,
a playbook with guidelines on how brands must prioritize privacy over convenience
in this new age of digital value exchange.
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KEY HIGHLIGHTS
Most brands have little understanding of
the impact of their data-collection efforts on customers.
Living in a world awash in acronyms, they tend to see data as
much more of a technology problem than a human one. They often
focus on the amazing results and exceptional customer experiences it can
help them provide. However, the survey showed that while customers may
appreciate better experiences, they come at a price.
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Americans
are
concerned.
While it is not surprising that customers have concerns around
data, it’s eye-opening just how prominent those concerns are.
Fully 58% of respondents said that they are very concerned
about the privacy and security of their personal information
and data. This places data near the top of all concerns for
people in the country, just below healthcare at 61%. To put this
in perspective, people are more worried about their data than
they are about terrorism, climate change, gun violence, natural
disasters, and the cost of living.
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Data privacy and security are front and center in the minds
of Americans today.
privacy 51%
Privacy/security of personal info & data 58% Country’s budget deficit 35%
security 50%
Current national political leadership 52% Cyber-terrorism 34%
Polarization of political views 42% Potential military hostilities around the world 27%
Impact of climate change 42% You and your family’s current job security 26%
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INSIGHT
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5G is only
going
to amplify
concerns.
This situation is likely to only get worse in the near term.
Most Americans (80%) know 5G is coming, but the country is
split on how much they should worry about it. About half say
they are embracing 5G or taking it in stride, but the other half
(49%) say they are concerned about its effect on their personal
data. Almost no one thinks 5G will lessen their worries about
data security and privacy. If this holds true, healthcare may
soon lose its dubious distinction as America’s top worry.
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The rollout of 5G will likely only increase data privacy and security concerns.
48
20
49
Not aware of 5G
25 25
Aware
80 3
2 1
Much MORE Somewhat MORE Neither more Somewhat LESS Much LESS
concerned concerned about nor less concerned concerned about
about personal personal info/data concerned about personal personal info/data
data/info info/data
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INSIGHT
Americans are just starting to realize what 5G will mean
in their daily lives. They’re realizing that technology will
finally be expanding into areas many have long been
reading about: their homes, their cars (as well as self-
driving vehicles), their entertainment experiences, retail
experiences, medical treatment, home delivery of food
and products, and a whole host of additional things they
can’t even imagine. Along with that comes a lot of uncertainty. How will all this work?
If people can barely keep the data on their phones and laptop
secure, how will they manage it across all of those things? What,
and how much, personal information will be known and by whom,
where, and for what purpose?
If history is any gauge, the customer benefits of 5G
will likely outweigh privacy and security concerns and
adoption will be rapid. But in a 5G world, service providers
and data players will need to be ever-more mindful of how
they use these new streams of data and, importantly, the
transparency with which they do, as customers are going
to be on alert.
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People
are
stuck.
Customers are stuck, feeling overwhelmed with the burden and
ambiguities of securing their personal information. Generally
speaking, they don’t know what to do and don’t understand how
the data ecosystem works. They feel it’s beyond their control
and that they are stuck in a state of passive inertia—with a
touch of paranoia. Not surprisingly, many have capitulated as a
result:
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80% 85% 76% 72% 6 4%
80% of Americans feel 85% say it’s difficult 76% say that controlling 72% say that hacks and 64% say while they’re
that controlling the to know just what to the security and privacy data breaches are just worried, they’ve
security and privacy of do to protect personal of their personal part of modern life honestly given up trying
personal information is information information is very to control it
very difficult to do time-consuming to do
WUNDERMAN THOMPSON 15
Customers
are
conflicted.
Customers are also highly conflicted about data privacy and
security. Despite their stated concerns, only 18% say they are
very diligent about ensuring the safety and security of their
data. Fifty-eight percent aren’t sure exactly what to do,
and 54% don’t understand how companies are using their
personal information. Even so, 82% recognize that they should
be doing more.
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Part of the reason is time. Asked what they thought they should be doing to protect
their data privacy and security, they reported everything from credit card checks to
regularly changing passwords on financial accounts. Added up together, these activities
would take them nearly an hour a week or 3 hours and 20 minutes a month. Not
surprisingly, 76% of Americans agreed that controlling the security and privacy of their
personal information and data is very time-consuming to do.
For many, it’s also a matter of risk versus reward. More than half (54%) of Americans
report that their personal data had already been compromised, and alarmingly, 69%
have resigned themselves to believing that a company currently holding their data will
be hacked or otherwise compromised in the next 12 months.
With so many negative personal experiences and fear for the future, you’d think
customers would be very mindful of who they do business with. Surprisingly, 72% of
people reported that they had continued doing business with companies that had
notified them that that personal information or data was or might have been hacked,
breached, stolen, or otherwise compromised. Somehow, the message is not getting
through.
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INSIGHT
This research demonstrates a well-understood
phenomenon in behavioral economics: the escalation
of commitment. Individuals who face increasingly negative
outcomes from an action tend to counterintuitively
continue in the behavior instead of altering course.
This protects their sense of self by aligning current
behaviors with previous decisions and actions. People
are preprogrammed to behave this way. But another behavioral economics principle, loss aversion, states
that there are limits to the escalation of commitment. Once a
customer experiences a significant enough loss,
those prior decisions seem less attractive. So while customers
are fine to stay the course while the reward outweighs the risk,
we need to ask ourselves where they will draw the line.
At what point will negative data experiences make the risk
of loss become so strong that it begins to impact brand-choice
decisions? The latent sense of anxiety in our data suggests
we’re approaching that tipping point.
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Regulations
barely
register
with
customers. The past few years have seen increased regulatory activity,
with new laws designed to protect personal data. Such
efforts include the European Union’s General Data Protection
Regulation (GDPR) and the California Customer Privacy Act
(CCPA), not to mention numerous bills being considered
in state houses around the country. Unfortunately, these
sweeping regulations are not reassuring anyone. In fact, most
people are unaware of their existence.
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To understand the extent of this ignorance, our survey asked how aware people were
not only of real data laws but also fake ones, like the fictitious US Privacy Protection
Law. Respondents reported that they were aware of the real laws at only a marginally
higher rate than the fake ones. This shows that they do not know about the laws
designed to protect them, and as a result aren’t taking advantage of their provisions.
Data protection regulations and legislation are barely registering with consumers.
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INSIGHT
People aren’t paying attention, mainly because no one
is making it easy for them to do so. Lawmakers and
regulators have to do a better job of communicating the
benefits of their legislation to customers in simple, easy-
to-understand language. Educational resources about
what rights people have under these new laws are scarce.
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The new PII:
Personally
Intimate
Information.
People and the data industry are also at odds over what they
want protected. The industry focuses on personally identifiable
information (PII), or things that describe or identify a person,
such as name, gender, bank account, driver’s license, social
security number, and passport information.
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TM
Wunderman Thompson Data Scale
WUNDERMAN THOMPSON 23
INSIGHT
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Responses
to
a breach.
So what happens when a data breach occurs? The survey
results found a mixed bag. Early on, people tend to react in a
highly visceral way. They report feeling disoriented, violated,
frightened, panicked, and devastated. They also describe
the experience of a data breach in human terms, like having
your home broken into, having your wallet or purse stolen, or
having the feeling of being stalked. Businesses would do well
to consider people’s emotional state when they are developing
communications and outreach strategies, balancing facts with
understanding and empathy.
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We also found that speed and transparency are essential
when responding to a data breach. Fifty-five percent of
people say they would trust a company again if it got the
word out quickly. They also want specific information—
not generalities (51%)—and for the company to work with
security experts to ensure that their data is as safe as it
can be (51%). In other words, companies must respond to
both rational and emotional needs if they want to restore
trust. That said, the customer
response to compromised
data is fairly superficial. On
average, people take only three
actions after their data have
been compromised: changing
their passwords, checking their
financial accounts regularly,
and requesting a new credit
card from their bank. All of
these rate relatively low on both
effort and effectiveness. The
most effective actions—deleting
an account, stopping doing
business with the company,
and downloading security
software—are among the least
done. Only 28% of people stop
doing business with or using the
services of a company after
a data breach.
WUNDERMAN THOMPSON 26
INSIGHT
The nomenclature of our industry can be terrifying. When
we’re saying things like ‘security breach,’ ‘identity theft,’
‘data hack,’ ‘online tracking’” ‘personal information,’ and
‘online identifier’—it’s no wonder that individuals tend to
react emotionally. Such words invariably elicit a negative
emotional response. When an incident happens, as our
data shows, customers are usually not surprised—they’re
expecting to experience something at some point. But
we’d be better served as an industry to use language that
people understand and avoid the histrionic vernacular of
our industry.
So long as customers feel like they know what is going on, the
company will have a better chance of regaining their trust.
—Rachel Glasser, Chief Privacy Officer, Wunderman Thompson Data
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Penny
for your
thoughts?
While people have only a vague sense of how their data are
being used, they do have a slightly better understanding of
the value exchange. An overwhelming proportion want more
transparency, and platforms that afford them greater control
over the value exchange:
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• 91% say they wish companies were more explicit about AVERAGE COST OF DATA PER AMERICAN / MONTH
the intent to use their data in exchange for the value
they’re giving them.
• 89% say that companies are deliberately vague about TV Viewing Demo- Health
how the data-for-benefit exchange really works.
what’s watched on graphics health
TV, taste in movies/ age, gender, income, conditions
shows race, ethnicity
• 86% would like an easy way to be able to pick and choose $100
$60 $87
what they get in return for sharing data.
WUNDERMAN THOMPSON 29
INSIGHT
Once customers really understand the volume and
complexity of the data that is being collected and sold
without their knowledge, agreement, or benefit, there
will be a revolution of the kind that leaves brands,
businesses, and entire industries in tatters. Businesses
that operate under the assumption that data about their
customers is free for the taking and monetizing will likely
not survive.
— Jason Carmel, Chief Data Officer, North America, Wunderman Thompson Data
WUNDERMAN THOMPSON 30
Digital devices
vs.
digital self.
People do a pretty good job of protecting their digital devices
(their phones, laptops, etc.), but have yet to make the leap
to protecting their digital selves online. Nearly three-quarters
(71%) of people are using some type of anti-virus, malware,
or firewall software on their devices, while less than half
(48%) are using digital tools and services to protect their
online identity.
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SERVICES CURRENTLY USED
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This is likely due to a couple of factors. First, the categories they trust the most with INSIGHT
their data (healthcare, retail banking, investments) are ones in which the stakes are high
if their data were compromised. Customers believe that these companies are as diligent “We all know that trust in a business is a cornerstone
as they are expected to be. The most trusted categories are also highly regulated attribute of any client-customer relationship. The idea
categories, and people may be projecting their trust in the regulatory environment of a halo effect of trust is interesting, as the effect
onto them. can often run in both directions. Trust a company for one
thing, and you’re likely to trust them with another. Said
another way, trust is transferable. If so, what does that
Top Trusted Industry Segmens Least Trusted Industry Segmens suggest about the lack of trust a customer might have
in a company’s ability to protect their data after
Healthcare providers Sharing Economy companies a breach? Will the lack of trust about data then transfer
(e.g., doctor, local hospital) 78% 78%
to a general lack of trust in the business overall? That
Your pharmacy 75% Mobile App companies 75%
would certainly seem plausible. This, of course, raises the
Banks 74% Social Media companies 74% stakes significantly on how companies should respond
Health insurance companies 69% Advertising companies 69% to their customers when a data breach occurs. In the
Investment firms Online gaming sites
future, the new business mantra may well evolve to ‘safer,
63% 63%
then better, faster, cheaper’.”
Nonprofit organizations 62% Online gambling sites 62%
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Data
security:
the great
unifier.
America today is probably more polarized than it has been in a
century. The left strongly supports many issues that the right
loudly rejects, and vice versa. As a result, the country has few
truly bipartisan concerns.
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COULD DATA PRIVACY AND SECURITY BE THE GREAT UNIFIER IN AMERICA?
privacy and security of data Privacy and Security of personal info & data 57%
60%
and information is a concern to
Identity theft 41%
them, which is a significantly 38%
Immigration 30%
57%
Republicans and Democrats Climate change 22%
70%
differ on many issues, but
when it comes to the privacy Current political leadership 32%
70%
and security of their data,
Gun violence 33%
they’re on the same page. 71% LEAST AGREEMENT
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Methodology Notes
The data for this research was collected via an online survey of 1,501 American adults
aged 18 or older. The survey has a margin of error of +/- 2.1 percentage points at 90%
confidence. The data were collected between September 25th and October 3rd, 2019. All
data were collected and processed in adherence with generally accepted industry best
practices. The data were weighted on age and gender to ensure our sample matches US
Census estimates for a nationally representative sample.
We are 20,000 strong in 90 markets around the world, where our people bring together
creative storytelling, diverse perspectives, inclusive thinking, and highly specialized
vertical capabilities, to drive growth for our clients. We offer deep expertise across
the entire customer journey, including communications, commerce, consultancy,
CRM, CX, data, production and technology.
wundermanthompson.com
Rachel Glasser Mark Truss
Chief Privacy Officer Chief Research Officer
Wunderman Thompson Data Wunderman Thompson Data
rachel.glasser@wundermanthompson.com mark.truss@wundermanthompson.com
WUNDERMAN THOMPSON 38