Gigya Study Reveals Increased Consumer Demand for Data Privacy and Personalized Marketing, Marked Interest in Next-Gen Authentication

MOUNTAIN VIEW, CA--(Marketwired - Jul 14, 2015) -  Gigya, the Leader in Customer Identity Management, today unveiled results from its "The 2015 State of Consumer Privacy & Personalization" report. The study is published annually, and examines consumer attitudes around data privacy, the prevalence of social login and the importance of personalization. This year's study revealed continued explosive social login use, driven by an aversion to completing lengthy registration forms and having to create more usernames and passwords. Most notably, the report highlighted a clear evolution in the concept of digital identity, Identity 3.0, which is characterized by increasing acceptance of next-generation authentication methods like biometrics. Predictably, the study also showed heightened demand for data privacy and more relevant marketing communications, which consumers believe can be achieved through business transparency and personalization.

Key findings from "The 2015 State of Consumer Privacy & Personalization" showed:

• The move toward Identity 3.0 is in full swing. Adoption of next-generation authentication methods is growing steadily, with 59 percent of consumers acknowledging a willingness to register or log in to a website or mobile application with an existing identity from a payment provider such as PayPal or Amazon.
  
  
• Biometric technologies are emerging as popular options for authentication. The study shows 41 percent of consumers have a high level of comfort logging in to a site or mobile app using a thumbprint or face/eye scan.
  
  
• More than 90 percent of consumers are at least somewhat concerned about data privacy and how companies are using customer data.
  
  
• Irrelevant marketing communication is another issue plaguing consumers. Per day, 30 percent of consumers receive between one and three irrelevant messages, and 17 percent of consumers receive more than 10 irrelevant messages per day.
  
  
• 88 percent of U.S. consumers have logged in to a website or mobile application using an existing social network identity, an 11 percent increase over last year's findings.
  
  
• Millennials aren't the only demographic group taking advantage of social login: 75 percent of consumers ages 55 and over have used a social identity to authenticate on a site or mobile app.
  
  
• An aversion to filling out online registration forms (56 percent) and remembering yet another user name and password (43 percent) top the list of reasons why consumers use social authentication. Being able to use the same identity on all devices and websites to get a more personalized experience is the third most cited reason at 25 percent.
  
  

Identity 3.0 Gains Momentum

The notion of "Identity 3.0" is characterized by the use of more advanced authentication methods beyond usernames, passwords and social login, and the ability to connect digital identities to everyday objects. This year's study provided concrete evidence that Identity 3.0 is taking hold. For example, 59 percent of consumers indicated they are very or somewhat likely to log in and pay on a website or mobile application using their existing identities from payment providers like PayPal and Amazon. And 57 percent would be very or somewhat likely to use their Apple ID to log in and register on websites and applications if offered as a choice. Surprisingly, 41 percent of consumers are also intrigued by using biometrics -- a thumbprint or face/eye scan -- as an authentication method. Clearly, businesses must consider implementing a customer identity management strategy -- powered by a scalable and flexible solution -- to support the continuing evolution of the concept of online identity.

Privacy and Personalization Shape Consumer Behavior

Consumers are more privacy-conscious than ever, and this year's survey results indicate people are taking proactive steps to safeguard their personal data. In fact, 58 percent of consumers will provide information to a business only if they are assured it will not be shared with other companies. Additionally, 52 percent of consumers will share information only if the brand has made it very clear how the information will be used. Consumers also expect greater personalization in marketing communications. Irrelevant marketing messages triggered 27 percent of respondents to stop visiting a company's website, and 15 percent of respondents to stop buying products from a company altogether. With so much trepidation among consumers, it's clear that many businesses must rethink their marketing methods and their processes for gathering and using personal data in order to build consumer trust and brand loyalty.

In their June 2015 Forrester Research report titled "How Will People Trust You?", analysts Thomas Husson and Fatemeh Khatibloo wrote, "The future of marketing and advertising depends on how the relationship between privacy and trust will evolve in a hyper-connected and sensor-driven world." Husson and Khatibloo added, "In the age of the customer, it is critical for brands and vendors in the data and marketing ecosystems to evolve their business practices now to build trust."

"Although data privacy concerns are seemingly at an all-time high, it's evident that consumers are prepared to share their personal information with businesses if presented with a clear value exchange and a high level of transparency," said Patrick Salyer, CEO of Gigya. "In addition, as consumers continue to embrace advanced authentication methods, brands must equip themselves to handle an increasing volume and variety of rich identity data in order provide truly relevant 1:1 experiences."

To review the entire study, please click here.

Note To Editors: "The 2015 State of Consumer Privacy & Personalization" Methodology
OnePoll and Gigya surveyed 2,000 men and women in the United States ages 18 and older.

About Gigya

Gigya's Customer Identity Management Platform helps companies build better customer relationships by turning unknown site visitors into known, loyal and engaged customers. With Gigya's technology, businesses increase registrations and identify customers across devices, consolidate data into rich customer profiles, and provide better service, products and experiences by integrating data into marketing and service applications.

Gigya's platform was designed from the ground up for social identities, mobile devices, consumer privacy and modern marketing. Gigya provides developers with the APIs they need to easily build and maintain secure and scalable registration, authentication, profile management, data analytics and third-party integrations.

More than 700 of the world's leading businesses such as Fox, Forbes, and Verizon rely on Gigya to build identity-driven relationships and to provide scalable, secure Customer Identity Management. Headquartered in Mountain View, CA, Gigya is privately held and has raised more than $100m in capital from several leading venture capital firms including Benchmark Capital, DAG Ventures, First Round Capital, Greenspring Associates, Intel Capital and Mayfield.