Data tracking report June 2010

Introduction

Data is the oil of the direct marketing industry. Just as the wheels of the world would grind to a halt should oil cease to flow, so too would the enterprise of direct marketing if the well of consumer data were to run dry. Data fuels direct marketing. Without it, targeting consumers becomes impossible and thereby renders the direct marketing approach hopelessly impotent.

As markets in every retail sector expand, so does their demand for good quality consumer data. Collecting data has therefore become a priority for brands and their marketers in their quest to retain and acquire customers to stay ahead of their competitors. Yet, with this demand has come great responsibility. Consumers are now fully aware of the value and vulnerability of their data, a fact which all too many brands have ignored at their cost. Thanks to identity theft and numerous well-publicised instances of organisational data losses, consumer confidence in sharing their personal details with businesses is at an all time low.

Understanding why consumers are quick to withdraw the privilege of using their data for marketing purposes from brands is not terribly complicated. However, the factors that lead consumers to entrust their data with companies in the first place, and how companies continue to retain the confidence of these consumers, are not immediately obvious. In this unique report, the inaugural DMA / fast.MAP Data Tracking Study provides an in depth analysis of why consumers share their details with brands. It also takes a look at the details they’re willing to share and what secures their confidence that the data holder is capable of storing their information safely and using it correctly.

According to the findings of the report, simple trust in the brand is by far the most compelling reason that consumers cite for their willingness to handover their details. Having a relationship of sorts with the customer also matters, as does providing a service the consumer regards as essential. People are most willing to share a broad range of details when buying products online than under any other circumstances.

But, as the Data Tracking Study also highlights, data is like oil in another respect: if it’s mishandled, then the effects can be catastrophic. It only takes one mishap for the public to lose all trust in the ability of marketers to manage data competently. To ensure that the well of data never dries up, marketers need to understand what they must do to continue to secure consumer confidence in the value of sharing their information with brands.

The biannual Data Tracking Study will chart the changes in consumer attitudes and will provide invaluable insight into what we, as an industry, are doing right and what we are doing wrong.

Chris Combemale,

Executive Director Direct Marketing Association

Data tracking report June 2010