A study conducted by Acquity Group, a digital marketing agency, now part of Accenture Interactive, revealed that if there are more incentives, consumers do not mind providing their personal details and online info, just to save money or for money. But they are more concerned about wearable devices as they can easily be hacked into or accessed with bluetooth devices.
“Our data reveals a gap in consumers’ fears of data privacy and their actual purchasing behavior,” said Jay Dettling, president of Acquity Group. “To capitalize on these opportunities, companies should focus on specific benefits that sharing data will deliver to consumers.”
Nearly 80% of consumers have privacy concerns with wearable Internet of Things (IoT) connected technologies, according to the 2014 State of the Internet of Things Study. But half of them said they would be willing to share personal details collected by such devices with third-party retailers if they are given discount coupons, rebates or other benefits.
The 2014 State of the Internet of Things Study surveyed more than 2,000 consumers across the United States to learn about their preferences for and barriers against use of the Internet of Things in areas like current adoption, perception, barriers and plans for future adoption.
Results were broken down based on demographics, including age, gender and location. Acquity Group completed this survey to help executives in B2C companies to study how consumers view IoT and connected technologies, as well as future plans for adoption.
Incentives Make Sharing Wearable Data:
Only 9% of consumers stated they would share data with brands for free. But that percentage dramatically increases when consumers are presented with a coupon or discount in exchange for sharing data.
Specifically, consumers are most willing to share wearable data for:
• Coupons and discounts based on their lifestyles (28 percent)
• Information on better workouts to reach their goals (22 percent)
• Information on the best foods to eat to reach their goals (22 percent)
• Coupons for fitness gear (19 percent)
The study also revealed that many consumers are willing to share data from a wearable device with a third party: 53 percent of consumers were willing to share data with doctors, 27 percent with family, and 17 percent with friends. Less than 40 percent of consumers wouldn’t share data with anyone.
It’s clear that while couponing makes consumers more likely to share personal data, there’s still a great deal of uncertainty around the security of these connected devices. Companies will have to address consumers’ very real security concerns before any widespread adoption can take root.
Premium for Features:
Not only are consumers open to sharing certain in-home device data, but they believe several features for which they’d have to share data would be beneficial – and would even be willing to pay a premium in some cases.
The features consumers believe would be most beneficial in connected in-home novelty technology, such as smart refrigerators, are:
• Location-based automatic coupons or offers on their mobile device for frequently purchased foods (86 percent)
• Recipes on their mobile device for food they can make from the products in their refrigerator (85 percent)
• Information on the least expensive places to purchase favorite products (82 percent)
Thirty-three percent of consumers are even willing to watch targeted commercials on their devices for additional coupons.
The features consumers believe would be most beneficial in in-home safety technology, such as smoke or carbon monoxide (CO) detectors, are:
• Accurate measures of CO levels in the home (95 percent)
• Notifications on my smartphone if a fire or CO issue arises while away from the home (93 percent)
• Automatic turn off of the furnace if there are increased levels of CO (85 percent)
While cost is a consideration, consumers are comparatively less worried about price than other factors, especially when it comes to safety over novelty:
• 83 percent of consumers would pay a premium for a smart smoke alarm, equipped with features such as clear emergency instructions and Wi-Fi capabilities
• 59 percent of consumers would pay a premium for a smart refrigerator, equipped with features such as a LCD screen showing food quantity and expiration date
• Only 22 percent express strong concerns about the price of these IoT devices
“As the connected technology opportunities within the market continue to grow, it’s important for businesses to understand ways to overcome barriers to adoption and create digital device strategies,” said Dettling.
“While incentives are part of the answer, companies must create an understanding among consumers that their devices and personal data are well-protected from security threats – this is where firms can most effectively differentiate their business models,” he added.