Consumers don’t believe their data is safe in the tech world. And according to a new study by ATB Ventures, those same consumers still want the conveniences and personalized experiences that data-informed tech offers. This juxtaposition drives the ongoing transition from Web 2.0 to Web 3.0. In the last fifteen years, tech-like application programming interfaces (APIs) and AI transformed the consumer’s digital experience and made it more personal.
ATB Ventures’ study highlights the trust deficit in tech that was born out of these technological advances. The study found that consumers’ chief concern is data privacy. They would like to see a greater liability on organizations that handle their personal data. 62% of North Americans are concerned about their data’s safety, but only 9% believe they have enough information to understand how their data is stored, used, sold, and managed.
Consumers no longer own their data. They know that they exchange their information to gain a convenient or personalized experience. The study shows that these consumers want to work with companies that prioritize the security of their data—63% of respondents said that data privacy is a competitive differentiator.
Consumers want to establish their right to privacy, but many feel ill-equipped to face big tech. Ultimately, 70% of respondents want to see organizations take more ownership when protecting their data. Respondents said they did not have the time, resources, or education to understand the intricacies of issues like data privacy or biases in AI. It is up to tech companies to bridge the gap and cultivate consumer trust so that the industry survives, not the other way around.
This infographic highlights the chief concerns of consumers and outlines practical solutions.
58% of respondents don’t believe that companies have their best interests in mind when it comes to their personal data. This must change. The ATB Ventures Trust Stack framework has been created to address these concerns. The Trust Stack is a template for companies to cultivate trust in their relationships with consumers. It maps out seven essential elements required to build a trust-centered approach to the consumer relationship. Each element—data, security, privacy, fairness, transparency, design and experience, and customer value—builds upon the others. The template shows the past, present, and future of each component of trust, from Web 1.0 to Web 3.0.
Director of ATB Ventures Chandra Rink pointed out that data security and a personalized experience are not mutually exclusive in the tech world.
“Convenience and privacy are opposing forces by way of profit—not technology,” said Rink.
The personal data of consumers has long driven the financial success of many tech companies, with data being used, exploited, and sold for profit. This cannot be a central element of the tech world anymore. Profit must come second, and privacy must emerge as the most important piece of data strategy.
Consumers value privacy so much that many will adapt their purchasing behavior to protect their data. Ultimately, organizations that foster trust will win in the market.