Adoption of wearable technology is slow going due to consumer security concerns.
A recent study from Acquity Group and Accenture Interactive found that while over 69% of American adults intend to own an in-home IoT (Internet of Things) device by the year 2019, only 13 percent are likely to own one by the end of next year, and the primary reason that adoption rate is so low is Americans are worried about their privacy when it comes to using wearable tech devices.
The study also found that only 9% of consumers would share free data with brands.
The percentage of consumers who would share data for free increased when they were offered a discount or coupon in exchange for their information, however. According to the 2014 State of the Internet of Things Study, of the 80% of consumers who were concerned about privacy, half of them stated they would be willing to share personal info that was collected by IoT devices with third-party retailers if they were compensated in some way for providing this data.
The president of Acquity Group, Jay Dettling said that “Our data reveals a gap in consumers’ fears of data privacy and their actual purchasing behavior.” He added that “To capitalize on these opportunities, companies should focus on specific benefits that sharing data will deliver to consumers.”
In addition to sharing with retailers, the research learned that 53% of consumers are willing to share their personal information with doctors. Furthermore, 27% said they would share with family and 17% would share with friends. Fewer than 40% of consumer said they would not share their personal data with anyone.
Location based coupons are the feature most consumers look for from wearable tech IoT devices.
This is particularly true when it comes to coupons or offers for recipes or for goods that the consumer frequently purchases. Moreover, one third of those who participated in the survey said that to receive extra deals or coupons, they would watch heavily targeted commercials at home.
Dettling commented that it is “important for businesses to understand ways to overcome barriers to adoption and create digital device strategies.” He added that their study reveals just how important a “value-added” user experience is and that Brands that don’t evolve their techniques to match customer expectations will miss out on key revenue opportunities in the future. Companies need to assure consumers that their wearable tech devices and personal data are protected.