EOS Survey “What's the value of data?”

Digital data have become a key economic asset. Companies collect, analyze and interpret data to optimize their business models. This is why the responsible handling of data and the need for it to be valued are increasingly a topic of public debate: What do consumers think about disclosing their data? Are they willing to sell personal information? And how do companies build trust for the use of data?

The representative international survey conducted by the EOS Group on the subject “What’s the value of data?” provides answers to these questions. The online poll was conducted in 17 countries in the spring of 2020 by Kantar, one of the world's leading market research institutes.

Anyone wanting to use certain digital services nowadays often provides companies with personal data in return, for example, contact and personal details, information on purchasing behaviors, account details or health facts. This allows products and services to be adapted to customer preferences and market trends. However, the EOS survey shows that the disclosure of data by consumers is crucially dependent on trust. And this is precisely where there is still a lot of work to be done: Only 35 percent of Germans trust companies to handle their personal information. The greatest challenge for companies will therefore be to break down this lack of trust through the appropriate and transparent use of data.

The survey revealed that apart from uncertainty about how to systematically limit the disclosure of personal information, the majority of German internet users often feel forced to provide data (Germany: 63%, Europe: 66%, USA: 58%, Russia: 81%). The fact that certain services can only be used in full by providing a lot of data reinforces the lack of trust in companies and explains the general skepticism that prevails.

However, there are some sectors that have a clear lead in the digital trust stakes: Leading the field are banks (Europe: 54%, USA: 56%, Russia: 54%, Germany: 47%) and online payment providers (Europe: 46%, USA: 46%, Russia: 58%, Germany: 47%). In Germany, confidence in banks is slightly more muted at 47%, on a par with payment providers. Energy utilities do similarly well (41%). In Germany, the clear losers on the trust scale are online retailers (24%), software firms (23%), and bringing up the rear, social networks and messenger services (12%). In these sectors in particular, companies should therefore invest in building trust to be able to encourage their customers to be more willing to disclose data.

Despite the frequent lack of trust in the responsible handling of personal data, consumers continue to reveal this data every day. Data is the basis that allows a company to better understand its customers and draw conclusions for effective business strategies. In other words, data is valuable. According to the survey, the majority of respondents believe that they should be compensated for the use of their data. Many are even prepared to sell certain kinds of data to trustworthy companies, but there are limits.

In an international comparison, Germany, at 59 percent (Europe: 61%, USA: 62%, Russia: 70%) is no exception when it comes to wanting to be recompensed for disclosing data. Germans are even less cautious than their reputation would suggest, as their willingness to sell data (36%) is slightly higher than the European average (34%). The same is true of the question about who has already entered into a “data for compensation” deal (Germany: 22%, Europe: 18%). So for companies that handle personal information responsibly, there is a good opportunity to do business in Germany.

Limitations are particularly apparent when it comes to the type of data offered for sale. For example, 61 percent of Germans are willing to provide trustworthy companies with information on their purchasing decisions and preferences for products and brands in return for money, closely followed by personal details (57%). But when it comes to fitness or health data (38% / 18%) Germans are much more cautious than the European average (51% / 31%). As in all other countries surveyed, account or credit card details, and insight into your bank account, are considered particularly sensitive. Only very few (less than 10 percent) are willing to disclose this data for compensation. Surprisingly, sensitivity about disclosing the various kinds of data is very similar overall in all countries.

Around one in three consumers in Germany would enter into a “data for compensation” deal. And as many as 78 percent would sell at least one item of personal information for money, provided the company concerned is trustworthy. When asked about specific forms of compensation, around half prefer discounts (50%) or material rewards (47%), while privileged customer status (18%), taking part in prize draws (14%) and better services (13%) are not as appealing.

This uncertainty about the value of data affects all consumers equally, so companies need to start making customers specific offers and in this way collect empirical data on the ideal price.

The survey makes clear how important it is to handle data properly. Accordingly, the pressure to act to optimize data deals is increasing in almost all sectors. There are lots of approaches that companies can take, but the greatest challenge is to respond to consumer skepticism in an appropriate way, with respect and transparency. What is surprising is that worldwide there are few differences with regard to the level of trust and experiences and attitudes of consumers about disclosing data. Whether they are in Germany, Europe, the USA or Russia, everyone will find almost the same conditions on the internet and when using online services.