UPDATED 21:46 EDT / JUNE 26 2013

Americans Love to Share Data, So Long As It Won’t Hurt Them

Analytics, or the science of analysis, has been used in business since the late 19th century. But it wasn’t until the 1930s, the dawn of the computer age, that analytics took a significant turn into the enterprise.

In the 1960s analytics was used in decision support systems, and has been involved in the development of enterprise resource planning, data warehouses, and other hardware and software tools and applications.  It’s been an amazing journey, adding to the impact of Big Data commercialization and The Internet of Things to name just a couple of market opportunities for analytics.  But what does the future hold for this data-driven industry?

The Present and Future of Analytics

 

To understand what the future of analytics looks like, we must first understand current industry offerings and understand the obstacles that still remain.  If we look at today’s analytics opportunities, we can begin to comprehend the vastness of this market.  Analytics already plays a huge role in various industries such as healthcare, banking, retail, and others, but there are some hindrances that each of these industries face to deliver a more robust experience for consumers.

Healthcare

In a study titled Engaging with Digital Consumers, commissioned by Infosys to shed some light on the disconnect between consumers and businesses, it was revealed that in healthcare, people are wary about divulging too much information, which leads to health care providers not being able to deliver the best course of action for patients.

The study shows that 92 percent of consumers favor physicians being armed with electronic health information about patients, but only 58 percent are willing to share personal medical history. And only 56 percent will share family medical history in order to receive a more personalized experience.  Still, only 51 percent are interested in discussing their diet.

  • Why the interest without the action?

Though it seems like people aren’t willing to share information to receive better health plans, they actually are.  Ninety-eight percent are more comfortable sharing information in person rather than filling up a form online, 28 percent are willing to share their social media profile, 79 percent signs up for an online or mobile app to coordinate with their doctor’s office, and 81 percent sign up for apps or websites that tracks their behavior against their health goals or doctor recommended treatment plan.

The reason why people aren’t too keen on giving out their information is that they fear that these information will result to denial of insurance, job related health discrimination, or even denial of treatment. In order for people to willingly give information that is vital to their health, healthcare organizations should be able to clearly explain to consumers how their data will be used for a more personal approach and not to intrude in their personal lives.

Banking

In the same study, it was discovered that 83 percent would switch banks if the other offers proofs that their funds will be more secured; 87 percent believe that banks should be monitoring accounts closely – as in track abnormalities such as huge withdrawals or suspicious funds transfer, to thwart fraud and theft; 62 percent want banks to use purchase and transaction history to provide more customized offers; 74 percent want banks to be open in communicating with consumers but only 27 percent are willing to give social media information.

By using analytics to know what their customers want or don’t want, they will be able to bring a more rounded offering to the table, one that assures them that their funds are secured while not coming out as standoffish.

Retail

As for retail analytics, it was discovered that 85 percent of consumers will be loyal if retailers deliver more personalized promotions based on consumers’ wants and interests, while  82 percent are willing to give out personal information when making a purchase.  A majority at 81 percent are more likely to purchase from a retailer if the offers target their location, and 71 percent believe that retailers are missing out on the huge opportunity that mobile brings if they continue delivering ads on web and emails, while 62 percent are willing to be tracked by retailers if that means more meaningful market offerings.  Some 85 percent value customer service and would purchase from a retailer again if they were able to help solve an issue, while 68 percent claims that social media plays a huge role in their purchasing decisions.

The consumer data gap : missed opportunities for business

 

By knowing that consumers are willing to share information to receive personalized offerings, retailers will be able to effectively convert ad views into actual sales, which means money in their pockets.  Also, effective targeted ads could ensure them loyal customers and more sales.

“As technology and online shopping evolves and expands users’ capabilities, so will their expectations for a more personalized shopping experience, product interaction innovation, and virtual experiences that rival a brick-and-mortar store. Shoppers are becoming their own fashion authority, influencing and being influenced on a global level, thanks to social media. Immediate access to designer collections has made consumers more aesthetically attuned and decisive,” Indre Rockefeller, director of ready-to-wear at Moda Operandi, stated.

This is the main reason businesses are investing highly on analytics tools and softwares and why giants such as GE, IBM and HP are making these tools available for use.

So who gets the data, and will it come back to haunt me?

 

Based on the Infosys-commissioned study, the biggest takeaway in all of this is that consumers are willing to give out personal information if that data is kept safe, won’t affect them in a detrimental manner later on, and if they receive more perks in return.

In healthcare, as long as they get the help they want, are able to protect their insurance claims and not be discriminated in the workplace, they will give out personal information for a more personalized experience.

Banks and retailers have it easier than those in healthcare, since people are more willing to give them personal details to keep their funds secured or get better offers at the register.

Are consumers asking for too much?

 

But doesn’t this make people a little fickle when it comes to protecting their privacy?  Some have shown great opposition to the government “spying” on them while others willingly give out personal information for a discount or freebies.  What’s the difference between the two entities getting information from people?

Here to shed some light as to whether the benefits received in relinquishing your privacy outweighs the loss of said privacy is SiliconANGLE Senior Managing Editor Kristen Nicole, who appeared on this morning’s Live NewsDesk Show with Kristin Feledy.

“One key thing to pay attention to here is, ‘what’s the cost/benefit balance for an individual to give up that information, and what type of information are they giving up?’  Healthcare information seems to be much, much more personal…

“When something like that can come back to bite you, ‘Am I going to lose a health insurance rate, is my car insurance rate going to go up, things like these, will these be detrimental to me, later on, down the line?’  Healthcare is very, very touchy in that regard.  Retail on the other hand it’s not going to really hurt me later on.”

“It really depends on the type of information as well as the individual and who has that information and how it can be used against you, or for you in the future,” Kristen Nicole concluded.

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