New research identifies increasing trust tension among European consumers in how organisations use their personal data

New study by Orange – Future of Digital Trust – shows lack of trust is undermining opportunities for more personalised and useful services

78% of consumers think it is hard to trust companies when it comes to use of their data, and 70% think there are few or no trusted ways to find out about personal data use

Better transparency, consumer control, and education required in order to address imbalance

Press release

more needs to be done -gurrolaFebruary 21st 2014. Orange has released the findings of new research into consumer concerns about how companies use their personal data – research which clearly demonstrates that all businesses need to work together to rebuild consumer trust.

This first instalment of an independent, three-part study with consumers across France, Poland, Spain and the UK highlights that consumers are increasingly wary about how their information is being used; do not feel in control; and do not believe there are any resources to help educate them on how to manage their data online.

Indeed, over three-quarters (78 per cent) state that it is hard to trust companies when it comes to the way they use consumer personal data.

An identical figure (78 per cent) feel that service providers hold too much information about consumer behaviour and preferences.

Meanwhile, 82 per cent feel they have little power to control the way their personal data is used by organisations.

While there are exciting opportunities for both consumers and service providers that can be built on intelligent, consensual and responsible use of consumer data – trustworthy data use is increasingly a fundamental requirement, and is having a greater impact on companies’ overall reputations.

In fact, 29 per cent of consumers trust companies less over the past year in general, while 16 per cent report more and 55 per cent have neither more nor less trust, clearly illustrating that trust is in decline.

“Faced with the rapid development of uses of consumer data, more needs to be done to help consumers understand and manage how their personal data is used,” said Daniel Gurrola, vp for business vision with Orange.

“In 2013, Orange made a commitment to our customers and the European Commission to increase transparency and control. 1

“We have started on this journey with increased transparency and new services such as Orange’s personal data dashboard, but this research shows that we, as an industry, have much more to do.”

The trust gap is increasing

The independent research points clearly to an increasing trust tension towards organisations holding consumer data, as well as a lack of trust in the responsible use of that data.

Of most concern, is the fact that trust is waning, with multiple sectors seeing a decline in the last year.

Which organisations do you trust less / more than a year ago?

Financial institutions: 31 per cent of respondents trust less than a year ago (21 per cent trust more)

Device manufacturers: 19 per cent less / (18 per cent more)

Mobile operators: 26 per cent less / (16 per cent more)

Internet service providers: 26 per cent less / (16 per cent more)

App developers: 26 per cent less / (13 per cent more)

Social networks: 46 per cent less / (12 per cent more)

The research shows that the treatment of personal data is a primary driver of consumer trust in organisations, and is almost as important as the quality of the core services that an organisation delivers.

Trust in organisations to use personal data online also varies by vertical sector, with financial institutions being most, and social networks being least trusted:

Who do you trust to use/protect personal data?

Financial institutions: 51 per cent

Mobile operators: 41 per cent

Device manufacturers: 41 per cent

Internet service providers: 41 per cent

App developers: 24 per cent

Social networks: 20 per cent

Imbalance of benefits

Alongside the issues around trust are concerns about who benefits most from the data that consumers share with organisations:

Just 6 per cent of respondents feel that the consumer is the main beneficiary of organisations gathering information about customer purchasing behaviour or history

67 per cent say that the organisations themselves benefit most

Just 16 per cent see the benefits as being equally shared

The research also demonstrates that consumers today do not think they are well informed about how their data is used or how to manage it, and there is currently no clear consumer champion to educate them.

Consumer bodies are doing the best job, but the relatively low figures suggest there is a need for improvement across the board:

Who educates consumers about managing personal data?

Consumer bodies: 36 per cent

Mobile operators: 20 per cent

Internet service providers: 20 per cent

National government organisations: 12 per cent

Don’t know / None: 37 per cent

However, it is perhaps most telling that 37 per cent cannot think of any organisations that are doing a good job of educating the consumer about managing their personal data.

Tackling the problem is a collective responsibility

Consumers are clearly saying that work needs to be done by all businesses in order to address the issue of trust and ensure that the opportunities created by use of data – for both the consumer and companies involved – are not lost.

Importantly, the research indicates all businesses have a role to play, and only through working together will consumer trust be increased.

Orange is making a call to action around three key areas which need addressing by all businesses: -

Transparency – the industry needs to be more answerable and transparent about data usage and data sharing

Control – the industry needs to provide tools to allow consumers to control their data, dialling up, or dialling down as they wish, and receiving the services and benefits accordingly. Data sharing must be an informed decision from the consumer

Education – there is currently no stand-out body who is seen to be educating the consumer about how to control their data. The industry must therefore act as a collective consumer champion and show the way forward

Fundamentally, consumers want the balance redressed in order to gain greater control of their personal data and benefit more from sharing their data.

This can be achieved by providing consumers with transparent data policies and offering tools to help them control use of their data.

The executive summary and an overview of the results can be downloaded at www.orange.com/digitaltrust

about the Orange Data Privacy Charter

Orange aims to be recognised by its customers, users and partners as their “trusted operator”. To that end the Group has made clear and solid commitments to protecting personal data and respecting our customers’ privacy. On 7th November, at the Hello 2013 Show, Stéphane Richard officially signed a charter comprising 4 commitments to protecting our customers’ personal data and privacy : -

security of customers’ personal data through its reliable processing and secure storage

control for customers over their own personal data and how it is used, including a personal dashboard

transparency in terms of the handling of data for its customers and users at all stages throughout our relationship

support for all its customers and users to help them protect their privacy and manage their personal data better

To learn more about the Orange Personal Data Charter, click here.

about the Future of Digital Trust research

Loudhouse conducted 2,023 online interviews among adults 13+ who have a mobile phone in the France, Poland, Spain and the UK. Fieldwork was conducted in December 2013 and January 2014.

about Orange

Orange is one of the world’s leading telecommunications operators with sales of 43.5 billion euros in 2012 and had 166,000 employees worldwide at 30 September 2013, including 102,000 employees in France. Present in 32 countries, the Group had a total customer base of more than 232 million customers at 30 September 2013, including 175 million mobile customers and 15 million fixed broadband customers worldwide. Orange is also a leading provider of global IT and telecommunication services to multinational companies, under the brand Orange Business Services. Orange is listed on the NYSE Euronext Paris (symbol ORA) and on the New York Stock Exchange (symbol ORAN). For more visit www.orange.com, or www.orange-business.com

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