Australians are increasingly prioritising the security of their personal data as a result of recent data security breaches, meaning brands must actively invest in data privacy to maintain consumer trust.
Market specialist research agency Honeycomb Strategy has released a report, Brands Beyond Breaches 2024 – A Brand Playbook for Privacy Protection, which found that 90% of Australians demand transparency in how their personal data is handled.
Meanwhile, 75% say they would prefer data privacy over a personalised experience.
The report noted that consumers are more critical of how their data is being used, with 72% saying they felt a company using their data for an undisclosed purpose was a ‘clear misuse’ of their information, while another 34% said they felt using their data to send them personalised offers was ‘improper’.
Honeycomb Strategy’s survey also noted that data security on social media continues to provide uncertainty for users. It found that brands on social media (72%) and social media companies (70%) were the least trusted with their personal data.
The report also highlighted that the fallout of a data security breach is now more far-reaching than ever, with customers turning their backs on companies that have experienced data breaches, such as Optus and Medibank.
It found 36% of customers switched after the recent Optus and Medibank breaches, and another 30% of Optus customers and 23% of Medibank customers said they still plan on ditching the providers.
Honeycomb Strategy’s survey also reported 7 million Australians said they would never trust Optus again, and a further 5 million said they would never trust Medibank again, following the data breaches.
This was reflective of the overall decline facing businesses that undergo a cyber-attack – more than half of customers (54%) are likely to leave the company, even if their data has not been compromised, according to Honeycomb.
John Bevitt, managing director of Honeycomb Strategy, said brands need to be transparent, proactive, and offer extensive support to maintain consumer trust.
“In today’s world, a privacy breach isn’t just a tech issue – it’s a trust issue. And to successfully navigate data privacy, brands need to be proactive, transparent and prepared.
“Consumers are looking to partner with brands who prioritise their data privacy, are forward-thinking in how they use and handle information, and are customer-centric with their approach.
“Consumers immediately distrust brands who are misleading or not completely transparent with how they plan to use their data. Sticking to the status quo is not enough.
“To pull ahead, brands need to do better, by being aware of customer data needs. The world of data is full of unknowns; by helping guide customers through it, brand trust associations will naturally strengthen.”
