Incentives may alleviate consumers’ IoT privacy concerns – study

25 Aug 2014

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The security of internet of things (IoT) technologies concern 80pc of consumers but half of them are willing to share personal data collected by IoT devices with third-party retailers when presented with compensation.

Such compensation includes a coupon or a discount.

Digital marketing agency Acquity Group, which is now part of Accenture Interactive, surveyed more than 2,000 consumers across the US for the 2014 State of the Internet of Things Study.

The data reveals a gap in consumers’ fears of data privacy and their actual purchasing behaviour, said Jay Dettling, president of Acquity Group.

Specifically, consumers are most willing to share wearable data for coupons pertaining to health and fitness.

Twenty-eight per cent of consumers are most willing to share wearable data for coupons and discounts based on their lifestyles, 22pc would part with personal information in exchange for information on better workouts to reach their goals, 22pc would swap their data for information on the best foods to eat to reach their goals, and 19pc would share their data for coupons for fitness gear.
 
Only 9pc of survey participants stated they would share data with brands for free.

“Our study demonstrates the importance of a value-added user experience. Brands that do not evolve strategies to mirror consumer expectations will fall short and miss major revenue opportunities moving forward,” added Dettling.

“While incentives are part of the answer, companies must create an understanding among consumers that their devices and personal data are well-protected from security threats – this is where firms can most effectively differentiate their business models.”

Coupons image via Shutterstock

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Tina held senior editorial positions at daily newspapers in Ottawa and Toronto

editorial@siliconrepublic.com