Consumer Trust as a Platform for Growth

Debrah HardingChief Operating Officer,The Market Research Society

Topics for today

• The headlines

• The concerns

• New research

• Value of trust

• Questions

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eBay faces investigations over massive data breach

Student loan company rapped after data breaches

Data breaches 10 times worse, say ICO figures

Cyber attacks cost UK firms £1.15m per data breach

Domino's Pizza Held to Ransom Following 'Severe' Customer Data Breach

NHS England bows to confidentiality concerns and launches £2m national publicity campaign on care.data

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Potential damage to business and brand

The number of data breaches from the previous year increased significantly:

87% of small firms - up 10% - experienced a security breach last year.

93% of large organisations had a security breach last year

50% more attacks on average than a year ago

According to the UK Department of Business Innovation and Skills (BIS), Information Security Breaches Survey

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www.pwc.co.uk/assets/pdf/cyber-security-2013-exec-summary.pdf

Potential damage to business and brand

Cost of breaches (based upon the BIS/PWC study)

£450k - £850k: is the average costs to a large organisation of its worst security breach of the year

£35k - £65K: is the average cost to a small business of its worst security breach of the year

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Potential damage to business and brand

Source of breaches: External (based upon the BIS/PWC study)

78% of large organisation were attacked by an unauthorised outsider

63% of small organisations

Source of breaches: Internal

36% of worst security breach were caused by inadvertent human error (a further 10% by deliberate misuse)

57% of small businesses suffered staff related security breaches

17% of small businesses know their staff broke data protection regulations in the last year7

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38 national research associations representing over 3,500 research businesses on 5 continents,

which generate US $25 billion in annual research revenues

Description of the Survey

A survey on attitudes to personal and sensitive dataLarge scale survey

United States 1015 interviews United Kingdom 1020 interviews Canada 1015 interviews Mexico 1010 interviews Brazil 1013 interviews Argentina 1022 interviews

Fieldwork conducted by Research Now during Q1 2014

Brazil

Argentina

Mexico

Canada

United Kingdom

United States

50%

45%

44%

36%

38%

37%

Mobile Phone Operators

Brazil

Mexico

United Kingdom

51%

44%

47%

54%

55%

51%

Social Media Companies (e.g., Facebook, etc.)

Brazil

Argentina

Mexico

Canada

United Kingdom

United States

32%

32%

40%

21%

25%

27%

Credit Card Companies

Brazil

Argentina

Mexico

Canada

United Kingdom

United States

28%

28%

29%

10%

21%

20%

“Domestic” BanksMarketResearch

40%

42%

35%

34%

35%

35%

Q: Here is a list of different organizations or companies that may collect and process your personal data. To what degree do you trust each of them to protect and appropriately use your personal data?

Percent saying the category is trusted very little

% “very familiar” with how personal data is collected and used

Q: How familiar do you feel with how your personal data is currently collected and used?

BrazilArgentinaMexicoCanadaUnited Kingdom

United States

23%19%

27%

9%10%17%

Familiarity with how personal data is currently collected and used

% “very concerned” that personal data might be misused

Q: How concerned are you that your personal data might be misused?

BrazilArgentinaMexicoCanadaUnited Kingdom

United States

45%40%

35%

56%50%

54%

Concerns about data misuse

Percentage of respondents who state approval should be obtained before sensitive personal data is

released to or used by companies

Q: In general, do you think your approval should be obtained before information you consider to be sensitive personal data is released to or used by companies or organizations for commercial purposes?

97% 97% 98% 99% 93% 97%United States United Kingdom Canada Mexico Argentina Brazil

Reasonable familiarity with how personal data is collected and used

Very high concern about the potential misuse of personal data

Very low trust in many types of organizations• Especially “foreign”

Poor trust in market research companies• Even amongst panel members

Most types of data are considered private• Many sensitive

SSN

TRANSPARENCY is a requirement1

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Informed Consent is a MUST

COMMUNICATION IS KEY

Where do you go from here?

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Option 1…

Option 2…Fair Data

Fair Data is a voluntary accreditation scheme that has

been established by MRS to encourage organisations

to improve best practice in the collection, use and

retention of customer and personal data.

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What is Fair Data?

• Ethical mark for personal data

• For consumers

• For citizens

• For respondents

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What is the Fair Data Mark?

Customers

Easily identifiable mark of trust

Reassurance that data practices of accredited organisations have met audited standards,

ensuring data requirements are being

respected

Organisations

Show customers that your organisation is legal, ethical and transparent about

data use

Reinforce CSR & generate goodwill

for your brand

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Final word…

“If the public are to let their personal data be used then they need to

know which organisations they can trust to use it properly.

Organisations need to make a public, visible commitment to

standards in the handling of the personal data of others. I

welcome this initiative as a step in the direction of getting users of

public data to make such a public commitment to standards. My

office has worked with MRS in the past on issues arising in

the research area and I know they have the experience to

launch this scheme.”

Christopher Graham, Information Commissioner

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Any Questions?

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