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Consumers Are More Anxious About Data, but Trust Is Central to Building Customer Loyalty: KPMG Study

Three-fourths of consumers willing to share data in return for a benefit; millennials more anxious than baby boomers.

Originally Published by KPMG.

A new KPMG study shows that while consumers are enthusiastically embracing new technology, they are more anxious than ever and more aware of the risks and benefits of handing over their data to businesses, including social media platforms.


However, they will gladly trade this information for more personalization, a better customer experience or a good deal, according to KPMG's Global Consumer Insights program and the 2018 "Me, my life, my wallet" report based upon a survey of 25,000 global consumers.

The research shows that almost half (47 percent) of consumers feel more anxious than last year, as well as five years ago. Millennial consumers are more anxious (51%), compared to Baby Boomers (36%).

The majority of consumers are willing to provide businesses with data but half (51 percent) are anxious about identity theft, and the majority (72 percent) say they don't trust anyone with their social media data.
Despite increasing anxiety and recent data scandals, three-quarters (75 percent) of consumers are still willing to provide businesses with their data, according to the study.

"Consumers are anxious, with younger generations feeling it the most," said Julio J. Hernandez (@J_Hernandez_CX), principal, KPMG's head of global Customer Advisory and U.S. Customer Advisory lead. "They like new technology, but are concerned about handing over personal data and what that could mean for their privacy and security. Our research demonstrates that organizations should be aware of the heightened awareness people have about the value of their data; they want to feel that they are in control at every stage of the business relationship."

Anxiety and Trade-Offs over Data


Younger consumers say they are just as concerned about identify fraud; however, they are more likely to see the benefits of sharing data. Millennial consumers are more likely (21 percent) than their Baby Boomer counterparts (5 percent) to trade data for better customer experience and personalization. And 71 percent of those polled said they would trade their personal information for better personalization, security or bargains.

Four out of 10 U.S. consumers say engaging in social media presence is important among the brands they frequently purchase from and 58 percent say they will likely view those offering discounts or deals.

Customers, data privacy and transparency


Consumers trust some industries more than others and with different types of data. Ranked in order of trustworthiness:

Top ThreeBottom Three
Healthcare (60 percent) Wealth management (37 percent)
Banking (59 percent) Government (37 percent)
Technology (54 percent) Advertising (26 percent)


"Businesses all too often view the exchange of data as a one-way street, expecting consumers to give away data with little benefit," said Colleen Drummond, partner, KPMG in the U.S. and KPMG Innovation Lab lead. "However, as our reliance on technology grows, we're becoming more and more aware of the data we create and are starting to see it as a valuable currency that businesses need to earn if they want to earn our cash. Those businesses that fail to shore up consumer trust in the way they hold, protect and use data will lose out in the long-run, and consumers will vote with their feet."

For more information, visit:
https://advisory.kpmg.us/content/advisory/en/index/insights/insights-for-your-role/customer-sales-service-marketing/future-customer-connection.html

Access the full Me, my life, my wallet report here: https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2018/11/me-my-life-my-wallet.pdf (U.S. p. 150-159). Follow the conversation at #cyberweek #customerinsights #CustomerFirst @KPMG_US @KPMGUS_News.

The Conversation

Investors Pressuring Alternative Investment Firms to Increase Gender Diversity: KPMG Report

Global report shows progress over past 2 years, but the industry still struggles to retain and advance women; women and men report differing views on severity of gender gap.

Originally Published by KPMG.

Institutional investors in the Alternative Investments industry are driving efforts to improve gender diversity at the funds and portfolios they invest in, but recruiting, retaining and advancing women is still the biggest challenge, according to KPMG LLP's sixth Women in Alternative Investment's report: The Call to Act.

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​KPMG's Tonya Robinson: 'From a very early age, I felt a call to public service'

Robinson, General Counsel at KPMG LLP, talks about her upbringing and what inspired her current career.

As General Counsel at KPMG, Tonya Robinson is responsible for coordinating the legal affairs of the firm and for managing the Office of General Counsel.

Before joining KPMG, Robinson served as Acting General Counsel of the U.S. Department of Housing and Urban Development in Washington D.C.
Over the course of her career, she has served in both private practice and the public sector, including being a partner in the law firm WilmerHale in Washington, D.C. before joining President Obama's Domestic Policy Council as Special Assistant to the President for Justice and Regulatory Policy.

KPMG: For Women at Work, Risk Taking Has Rewards, yet Many Hesitate to Leap into the Unfamiliar

Women of color and newcomers more apt to take big risks for career advancement.

Originally Published by KPMG.

When it comes to risk-taking in the workplace, seven in ten (69%) women are open to taking small risks to further their career, but far fewer (43%) are open to taking bigger risks that may be associated with career advancement, according to a study of over 2,000 professional women by KPMG LLP.

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KPMG: Technology Top of Mind for Financial Executives

Cyber security a growing concern; companies taking a 'Watch-And-Wait' stance toward blockchain.

Originally Published by KPMG.

Technology -- keeping pace with change, preventing cyber breaches or investing in emerging tools, such as blockchain -- remains top of mind for corporate financial executives, according to a new survey by U.S. audit, tax and advisory firm, KPMG LLP.

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Health Care IT Remains Hot Sector Despite Valuation Concerns: Says KPMG

"Deals are largely being driven by the need for savings, economies of scale, and improving cash flow or accretive earnings per share."

Originally Published by KPMG.

Health care IT remains a hot investment sector despite concerns about these companies being overvalued, according to KPMG-Leavitt Partners 2019 Investment Outlook, a survey of health care investment professionals.

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Autonomous Delivery Vehicle Miles Traveled to Skyrocket to 78 Billion per Year by 2040: KPMG

Islands of autonomous delivery to emerge; revolutionize movement of goods.

Originally Published by KPMG.

KPMG predicts the development of autonomous delivery vehicles will drastically revolutionize the current consumer e-commerce environment, drive consumer demand for more and faster goods deliveries and lead to an entirely new product delivery ecosystem for shoppers and buyers of goods and services.

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