Half of consumers would continue to use company after data leak

More than half (55 per cent) of UK consumers would be willing to carry on using a company that has leaked their data by accident, despite rising concerns about how personal data is used.

A global study of 5,000 consumers by cloud customer experience firm Genesys found that 92 per cent were concerned about how companies are using their data, however it also revealed that convenience is a key factor influencing appetite for using services; even if their data has been put at risk.

More than a quarter (26 per cent) of respondents said they would ‘reluctantly’ carry on doing business with a company despite a breach if they feel there isn’t a convenient alternative.

When it comes to penalties for breaches, more than a third (34 per cent) reported that reparations to those affected are the most appropriate enforceable action.

Slightly fewer (32 per cent) believed that a government fine proportionate to the size of the data breach, such as those issued under GDPR, would be a suitable consequence.

The survey also found that 45 per cent of UK consumers were more inclined to share their personal data with businesses if they are likely to get discounts or freebies.

These shoppers are happy to sign up to a club card even if they know their data will be shared with third parties. This is particularly true of Generation Z consumers (55 per cent) and Millennials (50 per cent), who demonstrated in the survey they are willing to give up their data to receive a better deal.

However, when asked about privacy, 40 per cent said they would not share their personal details, even if it meant missing out on discounts and longer interactions. This number was even higher amongst Baby Boomers, with over half (51 per cent) not willing to share their personal details.

According to the survey, saving time is not a motivating benefit for most consumers, with only 15 per cent of UK shoppers willing to trade speed for privacy.

However, Millennials (21 per cent) were the most likely age group to divulge their personal details if they feel that their interactions with brands will be more efficient and convenient.

Shahzad Ahmad, vice president of cloud competence centre and data privacy at Genesys, said: “Companies are increasingly using personal data and AI based technologies to deliver tailored experiences to consumers, however, they need to take all reasonable steps to follow regulatory compliance with data privacy.

"Any failure in doing so, will not only result in damage to the brand, but will result in financial penalties and loss of customer loyalty.”

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