Sunday, 31 August 2014

80 percent of consumers fear privacy invasion in the Internet of Things revolution


80 percent of consumers fear privacy invasion in the Internet of Things revolution

This year saw the Internet of Things segment achieve mainstream spotlight with Google, Samsung, Apple and a host of other companies betting big on its future. Of course, the primary motivation for the tech majors is home automation, but we are likely to everyday things such as tables and chairs connected to the Internet thanks to the IoT revolution.

But a new study says that while companies might be gung-ho about IoT and connected devices, consumers are very wary of such a revolution. Nearly 80 percent of consumers have privacy concerns with wearables and IoT devices, according to a study conducted by Acquity Group, part of Accenture Interactive. While expressing their fears, consumers also said they would be okay with sharing data if suitably compensated with offers or discounts. The survey covered more than 2,000 consumers across the United States

It showed that consumers are most willing to share data in exchange for coupons and discounts based on their lifestyles (28 percent), information for better exercising (22 percent), information on better eating habits (22 percent), discount coupons for fitness equipment (19 %). The study also said that manufacturers should focus on these benefits for users while thinking up new devices. “69 percent of consumers [are] planning to buy an in-home device in the next five years. By the end of next year, a total of about 13 percent of consumers will own an in-home IoT device such as a thermostat or in-home security camera. Currently, only about 4 percent of those surveyed own such a device,” the study said.

While human beings wanting things for free does not equate to a ground-breaking study, there’s a lesson to be learnt for companies who are going to foray into this segment in a big way next year or in the future. Don’t collect data willy-nilly, but instead incentivise it (not only through freebies). What the study suggests is that companies would be more successful in ramping up adoption of its smart devices by banking on gamification models. With a huge spike expected in the IoT segment by next year, we could start seeing the real benefits of such incentivisation soon.

No comments:

Post a Comment