News • 13.02.2020

Deal for personal data in luxury segment

Affluent consumers demand security, privacy and personalization in exchange for personal information

A waiter in a tailcoat with white gloves holds a tray with a note on it;...
Source: PantherMedia/thorstenschmitt

Affluent U.S. consumers demand stringent safeguards on the security and privacy of their personal data from companies that collect their information, according to a new Luxury Institute survey of Americans earning at least 150,000 dollars per year. They also demand true personalization in exchange for their data.

With several high-profile breaches of customer data kept by merchants, credit card companies, and even credit bureaus, insights into attitudes on data sharing and personalization were among the most revealing in the Luxury Institute’s 2020 State of the Luxury Industry report, which also included surveys of affluent consumers within the top 10 percent of household incomes in Canada, Australia, the United Kingdom, France, Italy, Germany, China and South Korea.

Data security is paramount

The overriding concern, cited by nearly two-thirds (63 percent) of affluent U.S. consumers, is that companies collecting their information must “secure my personal data and protect it from hackers.” More than half (54 percent) say that companies must inform them as soon as possible if a breach occurs with guidance about what to do, and also that companies should “ask permission before selling my personal data to third parties.” A majority (51 percent) say that companies should “be transparent and specific about the personal data they are collecting and why they want it.”

Older and wealthier individuals are more likely to demand their approval in writing every time data about them is collected. A smaller but significant (28 percent) share of consumers, especially those with incomes above 200,000 dollars and net worth above 2 million dollars, want to exert a greater level of control on their data by having an opportunity to download and review all personal data collected about them in a usable format.

Personalized experiences as benefits

There is also a desire to participate in the upside of data collection: 24 percent want companies to pay them, or to provide them with incentives to grant permission to use data, and 24 percent also want trusted brands to provide truly personalized experiences based on personal data they have collected.

The types of data affluent consumers are most willing to share are lifestyle and interests (38 percent) and current product ownership (33 percent). Purchase history and spending patterns (23 percent), along with fitness and wellness (15 percent), are also viewed as permissible. Overall, there is a pronounced reluctance to share medical and health information (8 percent), as well as location tracking (11 percent), and browsing history (14 percent). As expected, Millennial U.S. consumers between 21-39 years of age, are several times more likely than generation-Xers or baby boomers to be willing to share this information, including medical data.

Another area in which affluent millennials distinguish themselves is the degree to which they already receive personalized offers. Overall, 24 percent of affluent consumers say they frequently receive personalized offers, but 35 percent of millennials report frequent offers. Only individuals with a net worth above 5 million dollars are more likely (40 percent) to be recipients of offers. Millennials are comparatively more amenable to receiving personalized offers from trusted brands via text message (32 percent) or phone calls (21 percent) than consumers 40 and older. Old-fashioned email (69 percent) is the most preferred communication channel for all demographic groups.

“Keeping data secure is absolutely the top priority for high-income consumers, but what we’re also learning is that they want a way for all of this data to provide them with relevant, tangible, real-time benefits,” says Luxury Institute CEO Milton Pedraza.

Source: Luxury Institute

related articles:

popular articles:

Thumbnail-Photo: Navori Labs Unleashes AI Marketing Software
23.02.2021   #digital signage #data analysis

Navori Labs Unleashes AI Marketing Software

Navori expands into the AI-Computer Vision driven analytics world with Aquaji t ohelp retailers

With nearly 25 years of digital signage innovation, Navori expands into the AI-Computer Vision driven analytics world with Aquaji to help retailers, digitalout-of home (DOOH) networks and other physical businesses measure performance, strengthen ...

Thumbnail-Photo: Bra-shopping during COVID-19 pandemic
15.12.2020   #consulting #customer satisfaction

Bra-shopping during COVID-19 pandemic

M&S launches contact-free bra fit service in England & Wales

On Thursday 3rd December M&S has launched a contact-free bra fit service at 64 of its biggest stores in England & Wales.The contact-free offering will be run by M&S’s team of lingerie experts and the consultations will include the ...

Thumbnail-Photo: 2021 could see record retail sales growth in the US...
17.03.2021   #e-commerce #brick and mortar retail

2021 could see record retail sales growth in the US

… but economy still hinges on coronavirus

A wide array of economic indicators point toward potentially record retail sales growth during 2021, but the coronavirus pandemic remains the biggest challenge for the year, National Retail Federation Chief Economist Jack Kleinhenz said ...

Thumbnail-Photo: Three ways to make better use of mobile marketing...
08.03.2021   #online trading #e-commerce

Three ways to make better use of mobile marketing

Social media, mobile optimization, QR codes – practical rips for retailers

The pandemic has rapidly changed the way consumers interact with brands, with digital platforms becoming the sole way for browsing and purchasing goods and services in almost all sectors. This has resulted in a tremendous rise in the use of mobile, ...

Thumbnail-Photo: Fashion out of waste
04.12.2020   #sustainability #fashion

Fashion out of waste

H&M collection for upcycling

H&M Conscious Exclusive A/W20 collection introduces exquisite pieces crafted from sustainably sourced materials made from waste. What is normally thrown away is purposefully transformed into treasures to be loved and valued, allowing us to ...

Thumbnail-Photo: Rapid click & collect service in Australia
19.02.2021   #customer satisfaction #brick and mortar retail

Rapid click & collect service in Australia

Coles to launch 90-minute Click&Collect Rapid offer on supermarket range

Coles is the first major retailer to launch 90-minute click & collect in Australia, making it even easier for busy Australians to shop with Coles Online. Now available at more than 400 Coles supermarkets nationally, Click&Collect Rapid ...

Thumbnail-Photo: Will people soon be shopping at the Club?
22.02.2021   #digital marketing #app

Will people soon be shopping at the "Club"?

Marketing opportunities of the new social media app Clubhouse.

WhatsApp, TikTok, Instagram, Snapchat - many retailers use the platforms to get their products to customers - that's nothing new. Recently, users have been able to meet in the "Clubhouse." Marcel Hollerbach, CMO of Productsup, talks ...

Thumbnail-Photo: The most inspired Christmas commercials 2020...
17.12.2020   #digital marketing #sales promotion

The most inspired Christmas commercials 2020

Messages for the holidays

The year 2020 was an odd one, a difficult one for many, and the holidays are no different. How are retailers reacting to that in their Christmas commercials and what messages do they send out for the holidays? Here is an international selection from ...

Thumbnail-Photo: How the industry thinks: The most important trends for 2021...
05.01.2021   #brick and mortar retail #digitization

How the industry thinks: The most important trends for 2021

What awaits retailers after the first Corona year?

2020 – most certainly not an easy year. But many agree: The only way forward is to look ahead. So we asked industry insiders – retailers, academics, manufacturers – what they expect for this year. How will changing customer ...

Thumbnail-Photo: How ugly labels can increase purchase of unattractive produce...
05.03.2021   #sales promotion #product presentation

How "ugly" labels can increase purchase of unattractive produce

Why do consumers reject unattractive produce?

Researchers from University of British Columbia published a new paper in the Journal of Marketing that examines whether and how the use of 'ugly' labeling for unattractive produce increases sales and profit margins.The study, forthcoming in ...

Supplier

EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
Navori Labs
Navori Labs
Rue du lion d'or 4
1003 Lausanne
Seven Senders GmbH
Schwedter Straße 36 A
10435 Berlin