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CUSTOMER DATA: DESIGNING FOR TRANSPARENCY AND TRUST (Consumer Awareness …

- - - - The personalization this data allows, such as constant adaptation to users’ preferences, has become central to the product experience.
        
        Google’s Nest thermostat, for example, autonomously adjusts heating and cooling as it learns home owners’ habits.
  - - - The consultancy Gartner estimates that nearly 5 billion connected “things” will be in use in 2015—up 30% from 2014—and that the number will quintuple by 2020.
- - - - While awareness varied by country—Indians are the most cognizant of their data trail and Germans the least—overall the survey revealed an astonishingly low recognition of the specific types of information tracked online.
- - - - untrustworthy (they would provide sensitive data only if required to do so in exchange for an essential service)
        
        and completely untrustworthy (they would never share sensitive data with the firm).
- - - - Give them control.
        
        The principle of building control into data exchange is even more fully devel‑ oped in another project, the Metadistretti e‑mon‑ itor, a collaboration between frog, Flextronics, the University Politecnico di Milano, and other partners.
        
        Participating cardiac patients wear an e‑monitor, which collects ECG data and transmits it via smartphone to medical professionals and other caregivers.
        
        The patients see all their own data and control how much data goes to whom, using a browser and an app. They can set up networks of health care providers, of family and friends, or of fellow users and patients, and send each different information.
        
        This patient‑directed approach is a radical departure from the tradition of paternalistic medicine that carries over to many medical devices even today, with which the patient doesn’t own his data or even have access to it.
      - Deliver in-kind value.
        
        Businesses needn’t pay users for data (in fact, our research suggests that of‑ fers to do so actually reduce consumers’ trust). But as we’ve discussed, firms do have to give users value in return.
        
        The music service Pandora was built on this principle. Pandora transparently gathers self‑reported data; customers volunteer their age, gender, and zip code when they sign up, and as they use the service they tag the songs they like or don’t like.
        
        Pandora takes that information and develops a profile of each person’s musical tastes so that it can tailor the selection of songs streamed to him or her; the more data users provide, the better the tailoring becomes.
        
        In the free version of its service, Pandora uses that data to target advertising.
      - Teach your customers.
        
        Users can’t trust you if they don’t understand what you’re up to. Consider how one of our clients educates consumers about its use of highly sensitive personal data.
        
        This client, an information exchange for biomedical researchers, compiles genomic data on anonymous participants from the general public.
        
        Like all health information, such data is highly sensitive and closely guarded. Building trust with participants at the outset is essential.