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The Canadian Consumer: How Do They Use Technology And Share Their Data? Gina Sverdlov, Consumer Insights Analyst

Consumers are increasingly connected…

…but are also weary of the data they share

Agenda

› How are Canadian consumers using technology?

› What kinds of data are these consumers creating?

› How can companies diffuse consumer data privacy concerns?

© 2013 Forrester Research, Inc. Reproduction Prohibited

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Agenda

› How are Canadian consumers using technology?

› What kinds of data are these consumers creating?

› How can companies diffuse consumer data privacy concerns?

© 2013 Forrester Research, Inc. Reproduction Prohibited

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The majority of Canadian adults are online . . .

July 2013 “The State Of Consumers And Technology: Benchmark 2013, Canada” © 2013 Forrester Research, Inc. Reproduction Prohibited

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. . . and they are connected

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Canadian online adults connect on multiple devices

Source: Forrester Research North American Technographics Online Benchmark Survey (Part 1), 2013

With massive digital usage comes the flood of data that consumers create

© 2013 Forrester Research, Inc. Reproduction Prohibited

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We are experiencing a data and information explosion. © 2013 Forrester Research, Inc. Reproduction Prohibited

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Challenges for the modern enterprise

© 2013 Forrester Research, Inc. Reproduction Prohibited

Source: Qmee, http://techmarketcommunications.files.wordpress.com/2013/07/onlinein60seconds.png

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90% of the world’s data has been generated over the last two years

Source: The Technology Liberation Front (http://techliberation.com/wp-content/uploads/2011/02/Riseof-Digital-Information.jpg) and http://www.sciencedaily.com/releases/2013/05/130522085217.htm

And it will only continue to grow with the Internet of things

© 2013 Forrester Research, Inc. Reproduction Prohibited

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Source: Harvard Business Review October 2012 © 2013 Forrester Research, Inc. Reproduction Prohibited

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Agenda

› How are Canadian consumers using technology?

› What kinds of data are these consumers creating?

› How can companies diffuse consumer data privacy concerns?

© 2013 Forrester Research, Inc. Reproduction Prohibited

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What kinds of consumer data do marketers have to work with? The Four Types Of Personal Data

Agenda

› How are Canadian consumers using technology?

› What kinds of data are these consumers creating?

› How can companies diffuse consumer data privacy concerns?

© 2013 Forrester Research, Inc. Reproduction Prohibited

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We have now entered the age of the customer

Sources of competitive advantage:

1900–1960

1960–1990

1990–2010

2010+

Age of Manufacturing

Age of Distribution

Age of Information

Age of the Customer

© 2013 Forrester Research, Inc. Reproduction Prohibited

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They don’t trust any company to keep their online information safe Which of the following types of companies do you believe are trustworthy when it comes to keeping your personal information secure online? 53% Banks 42% Credit card companies

29% 21% 19%

Insurance companies Government organizations

18% 21% 18% 16% 15% 22% 14%

Email providers Investment companies Airlines Social networking websites Money management websites (Mint)

Consumer packaged goods companies Media companies (e.g., NYtimes.com) Online dating websites Don't believe that any of these companies Don't believe that any of these… keep my personal information secure online

36%

34%

Canada

7% 6% 6% 6% 5% 5% 4% 4% 3% 2%

United States

33%

44%

Base = 32,354 US and Canadian Online adults (18+) Source: Forrester Research North American Technographics Online Benchmark Survey (Part 2), Q3 2012 (US, Canada)

They are skeptical of companies handling their personal data… “There is no company I trust to be secure enough especially with the NSA around.” “I expect banks and doctors to keep my information safe. Other than that, I believe the consumer is fair game for companies that want to know everything.”

“As far as trust goes, the companies I do business with handle our data well or they don’t get our business.” Source: Forrester's ConsumerVoices Market Research Online Community, Q3 2013 (US) © 2013 Forrester Research, Inc. Reproduction Prohibited

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And they’re most concerned about individual identify data being collected and abused Why are you most concerned about your personal privacy, security, or safety when doing certain things online? 57% 62%

I am concerned about identity theft

40% 41%

I don't want my information to be permanently recorded and accessible to others

I am afraid of phishing scams

I don't want my information or tracked behaviors to be shared with advertisers I don't want companies to know my personal information

27% 26% 20% 22% 20% 19%

Base = 32,354 US and Canadian Online adults (18+) Source: Forrester Research North American Technographics Online Benchmark Survey (Part 2), Q3 2012 (US, Canada)

Canada United States

Image source: http://playeressence.com/depressing-realities-surrounding-developer-closures/ © 2013 Forrester Research, Inc. Reproduction Prohibited

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But they do the very activities that concern them 84% of online Canadians and Americans with a bank account use online banking

62% of online Canadians and 72% of online Americans have ordered and paid for products or services online in the past three months Source: Forrester Research North American Technographics Online Benchmark Survey (Part 2), Q3 2012 (US, Canada) © 2013 Forrester Research, Inc. Reproduction Prohibited

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Although consumers worry about the collection and use of their online data, they will continue with online tasks and exchange their data if they perceive a benefit

© 2013 Forrester Research, Inc. Reproduction Prohibited

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But they must be made aware of the data value exchange Pandora explains to consumers that they get content in exchange for viewing ads

Source: Pandora website May 2012 “How To Defuse Digital Marketing Privacy Concerns”

Google Consumer Surveys allows consumers to continue reading premium content in exchange for answering a brief survey

Source: Google Consumer Surveys © 2013 Forrester Research, Inc. Reproduction Prohibited

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Amazon lets customers know third party ads translate into lower service costs

May 2012 “How To Defuse Digital Marketing Privacy Concerns”

Progressive Snapshot makes it clear what kinds of data they do and do not collect

Image source: imsurancequotes.com (http://www.imsurancequotes.com/) and Online Auto Insurance (http://www.onlineautoinsurance.com/) © 2013 Forrester Research, Inc. Reproduction Prohibited

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Marketers need to focus on five areas to unlock consumer data

September 2011 “Personal Identity Management”

Some key takeways for data marketers

› Understand your target consumer: How they connect, how they like to interact with brands, and their data sharing preferences.

› While consumers are concerned over the collection and use of their data, they don’t shy away from sharing it if there is a value exchange. Make sure that consumers are aware of the value exchange.

› Be transparent with your data advertising efforts—let consumers know what data you are using and what they are getting out of it. © 2013 Forrester Research, Inc. Reproduction Prohibited

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Thank you Gina Sverdlov +1 617.613.6445 [email protected] twitter @gsverdlov