Consumers are reducing the amount of data they share online, says DAN study

Consumers are becoming increasingly mindful and critical of data management by public institutions and private companies.  Based on a study by Dentsu, 44% of people globally have taken steps  to reduce the amount of data they share online over the past year. According to Dentsu Aegis Network's "Digital Society" report, while digital technologies are transforming how brands serve customers, lack of trust and concerns around personal well-being are prompting people to seek a healthier balance of digital media consumption. The study added that 78% of people globally would stop doing business with an organisation that misused their data – and in APAC, 77% would do the same.  In China, the number stands at 86%. Globally, only 45% globally trust that organisations holding their personal data will protect their privacy. These concerns go beyond the tech industry as the study said all businesses deploying digital products and services face a similar level of scrutiny. Having tech savvy individuals pull away due to privacy issue will result in brands having a harder time in engaging them, "as these consumers are also those with the highest propensity to use digital products and services (e.g. shop online, use an app to take a taxi or stream music)", said the study.This is creating a digital paradox for brands - as those most ready to embrace digital marketing and services are also the most likely to push away from them. Curbing consumers' distrust in brands and businesses  While these trends carry implications for brands and businesses in terms of how it engage through digital channels, the "Digital Society" report highlights a series of recommendations. This includes the need for businesses to compete on openness and transparency around data usage.By focusing on engagement and not just reach, brands can also maximise the value of interactions, as consumers increasingly initiate those. Amid a growing debate around the negative impact of social media and digital technology on health, brands also need to work out how they can be part of helping people undertake their own "digital detox" and create a loyalty premium by helping them interact on their own terms. In addition, both brands and businesses have to harness technology to enable more effective learning. "The more positive people are about digital technology in terms of their own skills, the more likely they are to engage with digital products and services," the report said. Takaki Hibino, executive chairman, Dentsu Aegis Network Asia Pacific said as digital technologies continue to reshape the skills and jobs of tomorrow, businesses need to build confidence in and help people develop their digital skills, as well as re-evaluate business processes against these changing dynamics. He added that  in Asia, as compared to the rest of the world, there is "greater optimism" that digital technologies will create career opportunities in the future. That being said, Hibino explained that people’s trust in technology is waning and concerns about the pace of technological change are also mounting. "It is no longer a question that people need to be at the heart of the digital economy. However, there is still a long way to go in meeting the digital needs of many. If this aspect is not fulfilled, innovation will always fail. The Digital Society Index calls for a more balanced approach to engage people through digital products and services – to truly grasp the opportunities presented by technology," he said. Understanding consumers' basic needs While the global findings in the report suggest significant progress is required to better meet people’s digital needs, there are variations across countries. Emerging markets tend to feel their basic needs (digital access and trust in data use) are well addressed, but not their psychological needs (health and well-being).  However, people in developed markets are generally positive about their basic and psychological needs, but much less so in respect of self-fulfillment (skills, education and jobs) and societal needs (belief in digital as a force for good). Locally in Singapore, more than half agreed that their basic, self-fulfillment and societal needs have been met. Meanwhile in China and India, the basic, self-fulfillment and societal needs were met, as more than 60% surveyed said so. The study was surveyed on over 43,000 people, assessing countries’ performance across dynamism, inclusion, and trust, to measure how well they are building a digital economy that works for all in society. According to the report, this year Singapore, the US and China rank as the top digital economies in the world. The US continues to perform strongly on dynamism, but less so on trust, reflecting a wider trend across Western markets such as Australia, France and Germany.