The Privacy-Value Mobile Balancing Act

by Net Future Institute on July 2, 2014

By Chuck Martin

Several new studies paint an evolving picture of the privacy-security value proposition.

Sentiments about mobile payments have improved to 74% of those adopting them from 58% a year earlier, according to a study by Prime Research for MasterCard.

The research suggests that in 2013, mobile payments transitioned from concept to adoption.

But then again, there is the issue of the collection of data (generally preceded by the word big), which raises the obvious issues of privacy and security, which come in every mobile payment study as well.

A new study shows that big data and retail are joined at the hip, with more than a third (36%) of industry groups saying that real-time offerings from retailers in mobile commerce will drive up the value of that data.

The problem is that much of the data is gathered without consent, according to the study by SAP, pointing out that consumers often shop online and frequently agree to have their information collected but are not aware of that agreement.

And then there’s the issue of what is any of that personal information worth, both to the consumer and to the merchant.

In yet another study, the majority (60%) of Millennials already are OK with giving their personal preferences to marketers.

However, almost a third (30%) of those initially hesitated sharing the info came around after being offered a small incentive, according the survey from Mintel.

The study also found that Millennials were more willing than Baby Boomers to share wireless numbers and social media profiles.

The issue of the value of a person’s data in relation to mobile shopping is going to become more significant over time.

Whether regarding mobile payments or any other aspects of mobile shopping, consumer expectations will continue to evolve.

The challenge and opportunity for marketers is to determine what value they can provide the shopper to make tradeoffs worthwhile to both parties.

And then to totally guard and protect any information traded for that value.

That will be part of the value proposition.
 

 

Chuck Martin is Editor of the mCommerce Daily at MediaPost and writes the daily MobileShopTalk column. He is the author of “Mobile Influence,” “The Third Screen,” and “The Smartphone Handbook.” He is CEO of Mobile Future Institute. Chuck Martin is a frequent Mobile Keynote Speaker and Mobile Marketing Speaker internationally. He also addresses Social Media in Mobile.

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