Data privacy practices can make or break customer relationships

The news: Stakes are high for brands that misuse personal data or aren’t clear about its collection and application, especially for AI purposes.

  • Three-quarters (74%) of global consumers would stop using a service over misuse of their personal data, per Usercentric’s “State of Digital Trust” report conducted by Sapio Research.
  • 47% have stopped, reallocated, or reduced their spending because of concerns over how a brand was using their data for AI.

On the flip side, 52% of consumers will spend 7% more with brands that earn their trust.

What it means: Privacy management is a mainstream consumer expectation rather than a want that’s limited to users who may be highly sensitive or worried about their personal information.

Consent practices need to be clear from the start and include detailed collection and usage policies. However, 48% of consumers click “accept all” on cookies less often than they did three years ago, meaning readers may skim banners and reject cookies regardless of brand efforts.

Recommendations for brands: Trust needs to be earned. Ensure privacy signals and controls are easy to find so users can understand what they’re agreeing to and opt out with little friction.

  • Establish a social and site presence that reinforces responsible data practices.
  • Provide consistent explanations of how customer data is used, and respond promptly to privacy or AI-related concerns.
  • Be explicit about AI use—distinguish between when data is collected to deliver offerings like personalization and when it will be used to train a brand’s AI tools.

Overall, don’t structure privacy practices solely for consent rates. Optimize them for trust—how information is handled can determine the future of a customer relationship.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.

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