Marketing leadership executives expect to see a significant spike in spending on data privacy in the next 12 months, as per the latest study from Braze.
Customer Engagement platform Braze recently surveyed 500 U.S. marketing executives and 2,000 nationally representative U.S. adults. As per the study, 71% of marketing executives surveyed expect their company investments in data privacy to increase in 2020. While consumers and marketers agree data privacy is essential, there is a striking divide among those who think it is vital. According to the study, 82% of U.S. adults believe data privacy is necessary, while only 29% of marketers consider data privacy to be critical to consumers. Close to 45% of C-suite marketing executives are more likely to agree that it is important to consumers that their data is kept private.
The study revealed that consumers in the US are taking the privacy of their personal information more seriously. Eighty-four percent of consumers have declined to do business with companies that required too much personal information, nearly all (94%) marketing executives surveyed agree that it is important to consumers that their data is kept private, found the report. Meanwhile, 40% of marketers say that the lack of legal clarity is a barrier to implementing stricter privacy practices at their companies. As per the study, 52% of consumers and 26% of marketing executives agree the federal government should take significant responsibility for driving changes to privacy policies. Moreover, the study found that 94% of marketing executives agree that U.S. adults should be compensated for the collection of their personal data, which about 71% of consumers are willing to share in exchange for compensation.
Furthermore, 40% of marketing executives say that the lack of legal clarity is a barrier to implementing stricter privacy practices at their organizations. Today, companies have to prioritize data privacy owing to GDPR and CCPA policies as it involves real legal and financial incentives. Around 90% of marketing executives agree that federal laws on data privacy would provide more clarity for marketers than the current state-by-state legislation. Internet commerce relies on cross-border trade, making the risk of mismatched or even conflicting statutes ever more tedious for businesses to navigate. By actively applying strict data privacy policies, companies can get the improved brand perception, higher market valuation, and industry leadership. Almost all the marketing executives agreed that companies should explain how customer data is used, and 94% of consumers expect companies to share that information.