While 54% of consumers say the internet is integral to their social lives, nearly half (45%) actively seek time away from their smartphone and other internet-enabled devices — rising to 53% among consumers aged 25-34.
This is according to a global EY study, Decoding the digital home, which evaluates consumer attitudes to a range of technology, media and entertainment, and telecommunications (TMT) services within the home across four markets — France, the Netherlands, the UK and the US.
The survey indicates that take-up rates of smart-home products and services look favourable — with smart utilities seeing the best five-year adoption outlook — but a surge in connectivity now threatens to undermine consumer trust.
Most respondents (72% across all markets) say they are cautious about disclosing personal data, while 41% in both the US and UK say they don’t believe their data can ever be fully secure.
Adrian Baschnonga, EY Global Telecommunications Lead Analyst, said:
“Today’s households are hyper-sensitive about data disclosure, which if left unchecked could frustrate the consumer Internet of Things growth story.
“Indeed, 43% of survey respondents are unconvinced that recent regulatory change can adequately protect their data profile. Businesses need to go beyond boilerplate statements of compliance, placing data protection at the very heart of customer interactions and the service-innovation agenda.”
Complex customer journey risks alienating consumers
The survey unearths a growing sense of confusion among consumers over an increasingly complex landscape of broadband bundles. Forty-two percent of respondents in France say they find it hard to choose services or packages that suit their needs.
Respondents in the UK (32%), US (30%) and the Netherlands (27%) echo this sentiment. Across all markets, nearly half (48%) of consumers say introductory offers make it difficult to understand which internet packages represent the best value.
“Complex bundles represent overkill for many households, while pricing plans are often opaque. Businesses need to help customers regain confidence by offering more transparent pricing plans, simpler packages and the information they need to understand the trade-offs between cost and value,” Baschnonga said.
Meanwhile, almost a quarter of consumers in the US and UK (24% in both markets) are struggling to find their favourite content, in what they perceive to be a crowded service ecosystem. This rises to 34% in the US and 39% in the UK among 18-24-year-olds, indicating that younger consumers may not necessarily find the digital world easier to navigate.
Martyn Whistler, EY Global Media & Entertainment Lead Analyst, said:
“An ever-growing array of platforms and devices are providing new experiences for many but engaging with must-have content can be a frustrating experience — with younger consumers the most likely to struggle. Ensuring that new propositions deliver high levels of convenience should be top of mind for content providers.”
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