The ‘Golden Age‘ of free-for-all customer data could be over by 2018 as people will shun sharing personal information with companies online, says accounting firm Ernst & Young (E&Y.)
Nearly half of customers (49 per cent) admit they will be less willing to share personal information with firms online over the next five years, while 71 per cent of business executives are not preparing for a future where customer data is not freely available
The survey, of just over 2,000 consumers and 748 senior business decision makers, finds that businesses need to take action to adapt their customer insight programmes.
78 per cent of consumers agreed their data enables companies to make more money.
Steve Wilkinson, EY‘s Managing Partner for UK & Ireland markets, said today‘s customers know the information that brands are collecting.
“Everything from web browsing behaviour to social media and interactions with the brand can be used to improve business processes, decisions, customer experiences, and identify competitive differentiators. However, many customers have recognised that businesses are using their personal information to help grow revenues, and are starting to withdraw access to their private data.”
Six out of ten of the companies surveyed say they currently use customer insight programmes.
Wilkinson added: “Many of today‘s businesses are reliant on customer-generated information as an important source of data for customer insight programmes. With companies investing large sums in developing their capabilities to gather customer information as part of Big Data strategies, organisations need to start reviewing existing schemes to future-proof investments after the “Golden Age” of free information comes to an end.”