Report: 78% Of Aussies Have No Idea How Brands Use Their Data

Customer engagement platform Twilio has launched new research that has found three quarters of Australian consumers do not have full knowledge of how organisations are using their personal data (78 per cent), and have limited or no control over how their data is used or disclosed to other organisations (73 per cent).

The new research from Twilio, conducted on 1500 consumers across APAC countries including Australia, investigates Australian consumers’ mindset around major shifts in data privacy and the evolution of digital marketing, including the industry’s imminent shift away from third-party data.

Brand trust and transparency key to unlocking more data sharing

The research uncovered a correlation between comfort levels in sharing personal data and knowledge about how organisations utilise this data. More than two-thirds (70 per cent) of Australian consumers surveyed said they would be willing to share more information if they trusted a company or brand.

To enhance trust, 65 per cent of Australian respondents also expect clear and comprehensible information about data usage, emphasising the importance of transparency in building consumer confidence. A similar number (65 per cent) of local consumers also expected a company to ask for consent before using data, and to inform them how their data will be protected (64 per cent).

Striking a Balance: Consumer Scepticism, Cookies and Personalisation

Local respondents appreciate the benefits of personalised experiences, with over half (51 per cent) acknowledging that personal data usage enhances their interaction with brand websites. Almost all (93 per cent) are also aware that rejecting site/apps’ use of cookies limits that brand’s ability to personalise their engagement.

However, while 79 per cent of local respondents either accept all cookies or allow selected cookies, further report findings show this may not be due to a willingness to engage in data sharing. In fact, more than one third (34 per cent) of Australian consumers feel they have to give up personal information they don’t want to share just to access basic digital services either most or all of the time.

Similarly, two-thirds (63 per cent) of Australian respondents believe consumers should avoid websites that collect cookies all together. An overwhelming 89 per cent agree that site owners must disclose their use of cookies and provide the option to opt out, or risk losing consumer trust. These findings underscore the need for brands to strike the difficult balance between personalised experiences and consumer privacy, maintaining trust while offering tailored engagements.

Cyberattacks, Transparency, and Brand Loyalty

Following a data breach, 21 per cent of Australian respondents would still continue to share personal data with their favourite brand. Interestingly, close to half (45 per cent) of consumers would also be more willing to share personal data if the brand is transparent about the breach and takes necessary steps to address the situation. These insights emphasise the critical role of clear communication and prompt action in mitigating cyberattack damages, highlighting the importance of trust and transparency in today’s digital environment.

The results additionally show that consumer trust is best earnt through past experience, rather than positive word of mouth or online reviews. When asked what would lead them to trust a brand, Australian consumers rated highest those companies they have already had good experiences with (58 per cent), companies they frequently buy from (54%) and those that are transparent about policies (53 per cent). Interestingly, only one quarter would trust brands that are popular in their social circles, and only one third would trust those with good online reviews.

“What these results show is that Australian consumers are feeling a strong lack of control and awareness around how their data is used. This uncertainty is unsurprisingly leading to greater hesitation around data sharing,” said Nicholas Kontopoulos (lead image), vice president of marketing, Asia Pacific & Japan, Twilio. “But when consumer trust is earned through positive experiences, consumers are more willing to share personal data – even in the wake of a breach. So clearly brand trust will play a pivotal role in forging the pathway to a healthy and sustainable data-sharing ecosystem in the post-cookie era.”