Consumers Willing to Engage With Brands That Collect Data Directly
- By Paul Mah
- June 07, 2023
While the impending demise of third-party cookies will have a far-reaching impact on how data is collected and used, it also presents a generational opportunity for brands to pull ahead of competitors, according to Twilio.
Crucially, 64% of Asia Pacific (APAC) respondents are more willing to engage with brands if they obtain data directly from consumers.
This was the conclusion of the “The Consumer Data Revolution in Asia Pacific” report, an inaugural study into the mindset of APAC consumers regarding data privacy and digital marketing.
The study findings are based on a survey conducted in January this year from a total of 1,500 APAC consumers across six markets.
Key findings
Third-party cookies have long enabled targeted advertising, personalization, and improved customer insights. What impact will their imminent retirement bring?
Here are some highlights from the report:
Consumers are ready to say goodbye to cookies: Survey respondents understand that cookies are widely used to provide personalized experiences on a website or app. But they also say they would prefer that they are not used.
Consumers will share data in the right circumstances: 64% of consumers say they would be more willing to engage with a brand reaching out to them if their personal data was obtained directly from them.
Incentives to share data: Incentives can increase consumers’ willingness to share their data with companies. The survey suggests that cash rewards (64%) are the most effective incentive, followed by discount coupons (44%) and loyalty points (39%).
It is worth noting that offering incentives has its limits; only 12% of respondents are willing to share all personal data when an incentive is offered. Above all, trust emerges as the most powerful incentive.
“Nearly three-quarters of consumers who are otherwise unwilling to share their personal information indicate that they would be more inclined to share data if they trust the brand,” noted the report.
Brands shift their strategy
Brands are shifting their strategy, focusing more on first-party data collected from customers, as well as on ‘zero-party data’ – information voluntarily shared by customers through surveys and polls.
However, Twilio’s research suggests it may be more challenging in some countries than others. In terms of willingness to share data with trusted brands, Twilio found consumers from the Philippines to be the most willing and consumers from Japan to be the least willing.
The full APAC list is as follows: Philippines (92%), Indonesia (81%), Singapore (80%), Australia (71%), Hong Kong (70%), and Japan (49%).
The first step to trust is by keeping consumers informed. It also helps if brands provide good customer experiences, and are honest and transparent about their policies. Interestingly, being perceived as trendy does not necessarily translate to trust by consumers.
Coming out ahead
The new data landscape will require innovative, privacy-compliant solutions, notes Twilio. This means striking a balance between delivering relevant, tailored content to customers and building their trust.
It does offer a unique opportunity to foster long-term relationships with customers – by requesting consumers' consent when collecting and using their data, and providing clear communication about their data practices.
The report concludes that consumers are open to businesses using their data for personalized messaging and advertising, provided it adds value, improves their experience, and respects their privacy.
"Today, consumers expect brands to protect their data and be upfront about how their data is being used,” said Nicholas Kontopoulos, the vice president of marketing for Asia Pacific and Japan at Twilio.
“The combination of skepticism towards third-party data and the willingness to share data with trusted brands is fueling new opportunities and forging the pathway to a healthy and sustainable data-sharing ecosystem across the region,” he said.
Paul Mah is the editor of DSAITrends. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose. You can reach him at [email protected].
Image credit: iStockphoto/yusnizam
Paul Mah
Paul Mah is the editor of DSAITrends, where he report on the latest developments in data science and AI. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose.