privacy & security: the new drivers of brand, reputation and action
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Privacy & Security: The New Drivers of
Brand, Reputation and Action
Global Insights 2012
Data breaches, security incidents and
privacy missteps are making headlines
worldwide and have become a focal
point for social media discussions and
legislation.
Managing data security and privacy
effectively is essential to businesses
today. The growing volume and
sensitivity of information being shared,
stored and used is driving demand for
greater transparency about how it is
being managed and protected.
Data security and privacy have moved from
the backroom to the boardroom.
Edelman’s industry study shows, for the first time, why managing data security and privacy impact business success. Our survey reveals:
The gap between consumer expectations and what businesses are actually delivering.
A relationship between effective data protection and business success.
That data security and privacy considerations do impact purchasing decisions.
People care about the security of their
personal information more than ever before. A majority of consumers are more concerned about data security and
privacy than they were five years ago and sense they are powerless to
exert control, leaving companies with the responsibility for protecting it.
Q12. Compared to five years ago, how has your level of concern regarding online data security and privacy changed?
Q15. Using a scale of 1 to 5, where 1 means “strongly disagree” and 5 means “strongly agree,” please indicate your level of agreement with the following
statements. (Summary of top 2 box scores shown)
of global consumers are
MORE CONCERNED than they were 5 years ago
over how their personal information is shared and used by companies
of global consumers feel they have
LOST CONTROL 68%
70%
Base: All respondents (Global n=4,050)
These concerns present both a challenge and
an opportunity for businesses.
Q15. Using a scale of 1 to 5, where 1 means “strongly disagree” and 5 means “strongly agree,” please indicate your level of agreement with the following
statements. (Summary of top 2 box scores shown)
Q14. Compared to five years ago, how would you describe the security of your personal information online?
Base: All respondents (Global n=4,050)
Consumers are fed up with the status quo and want companies to act,
having seen either no change or a decline in the security of their data
over the last five years.
of global consumers feel companies
MORE SERIOUSLY need to take security & privacy 85%
of global consumers feel their
PROTECTED online privacy is adequately by business practices
32%
9%
25%
23%
36%
7% Much more secure
Somewhat more secure
No Change
Somewhat less secure
Much less secure
Security of Personal Information Online Compared to Five Years Ago (Global)
57% of consumers report no
change or a decline in the
security of their personal
information online
80%
Adults are most concerned about information
held by businesses they use most frequently. Online shopping and banking, which require the sharing of financial
information, are the most common online activities. Understandably,
consumers are most concerned about the security of their financial
information.
Most Common Online Activities (Global)
82% Online Shopping
Online Banking
Q1. Which of the following actions have you taken in the past three months?
Q3. What types of online personal information are you most concerned about? Please order the following types of information from least to most important.
Base: All respondents (Global n=4,050)
12%
13%
17%
26%
28%
36%
78%
90%
Browsing activity
Content posted by others to social networks
Content posted by you to social networks
Frequent purchase / shopping data
Health information
Emails
Personal information
Financial information
Information of Greatest Concern Online (Global)
A notable gap exists between the number of people who consider data
security important in the finance and online retail industries and the
number who actually trust them to protect personal information.
23-point gap in expectations
92% 84%
78% 77% 69%
63%
50% 50% 43%
37%
69%
33%
51% 48%
12%
27%
12% 9% 11% 6%
23%
Finance OnlineShopping &
Retail
Medical &Healthcare
Government SocialNetworking
Technology News &Media
Automotive Food &Grocery
Gaming Utilities*
Importance of privacy and security in each industry (global)
Trust in each industry to protect personal information (global)
Financial institutions and online retailers are
not meeting the needs of their customers.
Q7. How important is your privacy and security when doing business with the following industries? *NOTE: Utilities not included as a response code
Q8. Which industry do you trust most to adequately protect your personal information? Please select the top three industries.
Base: All respondents (Global n=4,050)
51-point gap in expectations
NOTE: Q7: summary of top 2 box scores shown; Q8: top three industries selected
Concern over businesses’ ability to protect
information impacts engagement in activities
important to online retailers and banks. Consumers report abstaining from frequent shopping or loyalty card
programs and online banking to protect their personal information.
Q4. Which of the following actions have you taken to protect your online information?
Base: All respondents (Global n=4,050)
do not join a frequent shopping
card or loyalty card program
ONE in FIVE adults
do not bank online ONE in TEN adults
Consumers Taking Action to Protect their Online Information
Nearly half of consumers reported that data security is among the top
three factors they consider when purchasing a smartphone.
Consumers consider data security and privacy
features when purchasing tech products.
Top Three Most Important Factors Considered
When Purchasing Smartphones (Global) 69%
61%
48% 47%
40% 35%
Price Ease of Use Data Security & Privacy Style & Design Product Warranty Physical Dimensions(size, weight)
Q5. In your opinion, when making a decision to purchase the types of products below, what factors are most important? Select up to three choices.
Base: All respondents (Global n=4,050)
34%
54%
34%
51%
53%
75%
43%
45%
42%
42%
59%
71%
Physical Dimensions (size, weight)
Product Warranty
Style & Design
Data Security & Privacy
Ease of Use
Price
Tablets Personal Computers
For personal computers and tablets, security considerations are on par with
style, design and physical dimensions of the product.
Security considerations also impact other
purchasing decisions.
Top Three Most Important Factors Considered
When Purchasing Tablets and Personal Computers (Global)
Q5. In your opinion, when making a decision to purchase the types of products below, what factors are most important? Select up to three choices.
Base: All respondents (Global n=4,050)
Security considerations also impact other
purchasing decisions. Even shoppers of traditional mobile phones and videogame consoles feel
security is a key concern.
Q5. In your opinion, when making a decision to purchase the types of products below, what factors are most important? Select up to three choices.
Base: All respondents (Global n=4,050)
of global consumers consider
DATA SECURITY AND PRIVACY among the top 3 most important factors when purchasing standard mobile phones
22%
29%
of global consumers consider
DATA SECURITY AND PRIVACY among the top 3 most important factors when purchasing videogame consoles
51%
42%
48%
29%
22%
17%
58%
37% 34%
44%
37%
Personal Computers Tablets Smartphones Standard MobilePhones
Videogame Console Digital Music Player*
Consumers selecting Data Security & Privacy among Top Three Important Factors Trust in Security of Device
Smartphones are suffering from a trust gap. More customers take security into account when purchasing a smartphone
than say they trust the security of the devices. Comparatively, smartphones
are considered the least secure devices.
Consumers selecting Data Security and Privacy among Top Three Most Important Factors vs. Trust in Security of Devices (Global)
Q5. In your opinion, when making a decision to purchase the types of products below, what factors are most important? Select up to three choices.
Q6.Please indicate your level of trust in the security of the following types of products. *NOTE: Digital music player not included as a response code
Base: All respondents (Global n=4,050)
14-point difference in consumers considering security
important and those that trust security for smartphones
Consumers indicate willingness to leave online services if personal
information was accessed without permission and are most concerned
about services that involve financial information.
The premium on security translates to adoption
and retention of consumers.
Consumers Likely to Switch Providers or Stop Using Services Entirely if Personal Information was Accessed Without Permission (Global)
80% 79% 77% 75% 75% 67% 67% 65% 63% 59% 55% 55% 54% 50%
Q9. For the following types of companies, if your personal information was accessed without your permission, how likely would you be to switch to a different provider or
stop using these services entirely, if they did have personal information on you? Please use a scale of 1-5, where 1 is “not at all likely” and 5 is “very likely.”
Base: All respondents (Global n=4,050)
Data shows that inaction on issues of data security and privacy will put
businesses are risk of losing their customer base.
Businesses must manage security and
privacy like a line of business and will lose
customers if they do not.
Q16. Have you ever left or avoided companies because they have had security issues in the past?
Base: All respondents (Global n=4,050)
Consumers that have Left or Avoided Companies because of
Security Issues they have had in the Past
46% 41%
55% 58%
36%
53% 52%
31%
Global US Brazil China Germany India Korea UK
Americans proved most loyal to the companies they do business with, yet
ONE in TWO say they are likely to change brands after a data breach
Actions Taken following Data Breach Events
of global consumers would
after a company they rarely used suffered a data breach
SWITCH PROVIDERS
In the wake of a data breach, individuals are even willing to abandon the
companies they trust most. Data breaches may also impact reputation
due to the strong tendency of victims to share their experiences.
Consumers indicate they will act to protect their
privacy if businesses don’t.
71%
of global consumers
TOLD A FRIEND about their experience
39%
of global consumers
POSTED ONLINE about their experience
29%
Q10. If the brand you trust most and use most loyally suffered a data breach, how likely would you be to switch brands?
Q11. If a brand you rarely use (but still has your personal data) suffered a data breach, how likely would you be to switch brands?
Q21. Did you take any action following these events?
Base: All respondents (Global n=4,050)