Call it cynicism, or merely being realistic -- but most
marketers do not believe that consumers bother reading privacy notices, according to a recent study by The CMO Survey.
Of companies polled, 95.2% do not believe that consumers have
carefully read the disclosures and allowances. And 90.4% say consumers lack a clear understanding of what the privacy notification means to them.
Still, 37.8% believe
customers are willing to switch brands based on privacy protection. That rises to 50% for pure-play online companies and 48.2% of technology firms.
And the respondents say that privacy
notices increase customer perceptions of their brand (55.8%) and brand loyalty over time (46.2%).
In general, 90.3% of firms believe customers trust their brand more
than the industry average.
Here’s what brands have been doing to increase trust in the face of privacy concerns:
- Promise not to sell customer’s personal
information — 63.1%
- Asked consumers to consent to our company’s use of their data (i.e. informed consent) — 58.1%
- Invested in technology infrastructure to reduce the likelihood of a data breach — 52.2%
- Invested in increasing trust in our brand reputation —
- Shared privacy notices with consumers that communicate how our company
will use their data — 45.3%
The Pharma/biotech industry has been especially
proactive, promising not to sell information and seeking customer consent for use of data (100% apiece).
In addition, brands have taken the following actions to compensate for
third-party cookies disappearing:
- Created a stronger data strategy to capture better information — 58.3%
- Invested in innovations to engage with
customers directly — 50.5%
- Reduced internal data siloes to generate a more complete view of customers — 32.3%
- Invested in
customer data platform (CDP) that offers better information about the customer journey — 30.2%
- Created strategic partnerships with agencies and to
generate data around customer touchpoints — 28.6%
- Offered customers incentives to provide access to their data — 25%
Meanwhile, marketers say privacy notices influence customers to:
- Think highly of our brand — 45%
- Stay loyal
over time — 36.5%
- Give our company positive word of mouth — 33.2%
- Search on our website or engage with our app —
- Share data with our company — 19.3%
- Purchase once they search on the website or app — 15.9%
general, companies have invested in the following to improve their digital marketing over the past year:
- Data analytics — 77.5%
- Optimizing of company
website — 74%
- Digital media and search — 70.9%
- Marketing technology systems or platforms —
- Direct digital marketing (e.g., email) — 68.2%
- Online experimentation and/or A/B testing —
- Managing privacy issues — 35.3%
- Machine learning and automation — 26.4%
- Improving our
The study also found that 54.2% are using a channel partner, down from 74% three years ago:
The CMO Survey surveyed 320
top marketers from January 11-February 7, 2022.