Report: Aussie consumers value their online behavioural data at $50

Latest AIMIA research shows the rising importance of data utilisation in customer loyalty programs and engagement as consumers put a price of their personal data

Australian consumers are increasingly aware of the value of their personal data, and would put a $50 price tag on their contact details and online behavioural intelligence if they could, a new report has found.

According to the 2016 AIMIA Loyalty Lens report, based on surveys of 15,000 consumers in nine countries including Australia, four in 10 local consumers regard their data as highly valuable, up from 31 per cent in 2014.

When asked to put a price tag on four key types of customer data, Australian respondents valued online behaviour such as browsing history and online purchases at an average of $50, along with contact information including address, email and phone details. Just under this and valued at $35 was lifestyle information such as hobbies and interests, income, household and occupation information, while personal information such as name and date of birth was valued at $30.

The figures were in line with most of the other countries canvassed for the report, with the exceptions of Germany and South Korea, where consumers valued all four types of customer data at $70 and $120, respectively.

The report also found 71 per cent of global respondents believed their preferred brands are good at using their data to make online shopping experiences better, yet 77 per cent would like more control over what data companies hold on them.

AIMIA managing director for A/NZ, Paul Smitton, said the report makes it clear data is becoming increasingly important to consumers. AIMIA is a customer loyalty program and analytics company operating a number of well-known programs globally including Nectar in the UK, and Aeroplan in Canada.

“Customers are really savvy and smart about how they view their data,” he told CMO. “They recognise there’s a value exchange and that’s the reason for providing data. Customers are more willing to share but expectations are much higher. Different data is being valued differently as well. Online behaviour was considered the most valuable by Australian consumers, for example.

“This all goes to the point that consumers are savvy about data, and marketers need to work harder than ever to leverage it.”

What was also apparent was that the more transparency about how data is being used, the more willing consumers are to share. For example, while 52 per cent said they would provide their mobile phone number without any context, the figure jumped to 69 per cent when companies provide an explanation.

Smitton said it’s vital brands are open and honest about what data they collect on consumers, and how they will use it. He also claimed too many brands are still not doing the basics of segmentation and targeting when it comes to loyalty and customer engagement, and needed to realise consumer data needs to be treated with respect. Other research undertaken by AIMIA shows consumers are willing to share their data but will quickly tune out if they don’t see data being used properly and with a high level of relevance.

“They’ll either not respond or physically opt out. The real job here is to ensure you are using data smartly,” he said.

As an example of how data is being applied in its own programs worldwide, Smitton pointed to Optus, which has pivoted its customer loyalty program away from points that can be collected and redeemed later, to personalised and experiential rewards and offers based on consumer behavioural data.

Globally, Necta has also increasingly become mobile-based, with a mobile app and consumer data used to drive personalised and relevant offers.

One other emerging digital trend explored in the AIMIA report is digital wallets. Just shy of half of Australian respondents stated they’re likely to use a digital wallet if it contains cashless payment methods, loyalty cards and travel passes, putting Australia third behind India (89 per cent) and the UAE (68 per cent). This was up significantly from last year, when less than one in nine smartphone owners globally said they were very likely to use a digital wallet.

For Smitton, the uptake again points to consumers being willing to adopt new digital functions and features if they offer a clear value.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:+google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith and Toby Harrison

Ogilvy Australia

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in