New Survey Highlights Consumer Demand for Honest Marketing and Stricter Penalties for Deceptive Practices

“Understanding what can prompt consumers to report a business can help avoid practices that can be detrimental.”

Consumers issue a rebuke to US marketers and advertisers on personalization

Acquiring personal data is the key factor to personalizing outreach and keeping CRM databases updated. Yet nearly a third (30%) of US consumers don’t like companies tracking their online data for personalized ad experiences, compared to a global average of 19%. Many US states are adopting new regulations like the California Privacy Rights Act (CPRA), which limit some of the methods businesses use to acquire and use personal data.

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Still, most (73%) consumers say they prefer ads that have been adjusted to their tastes rather than generic ones. This trend suggests there is a missed opportunity for marketers if the negative perceptions of personal data tracking persist.

US customers cut and run when misled by marketers

Growing businesses should be concerned about regulatory consequences for misleading marketing materials–many of which are a direct result of negative customer experiences. Sometimes reviews or word-of-mouth can be even more damaging than a regulatory offense.

Misleading content and false promises about products from companies have led to consumers abandoning brands. Notably, 40% of US consumers say they have previously stopped doing business with companies that use deceptive marketing tactics–higher than the global average of 33%. Inversely, 32% of global consumers would alert family, friends, or colleagues about deceptive marketing compared to 29% of Americans.

Most US consumers believe businesses are not playing by the rules when it comes to marketing communications. Almost half (48%) of the sample don’t trust that companies are following regulatory guidelines for marketing communications.

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“There are signs that American consumers are becoming resistant to practices that have been taken for granted by digital marketers, such as personalized marketing or third-party data,” said David Jani, marketing analyst at GetApp. “Understanding what can prompt consumers to report a business can help avoid practices that can be detrimental.”

When trust is low, turn consumer perceptions around immediately

Turn perceptions around by demonstrating data transparency and upholding good data practices. Use CRM software and marketing analytics tools to manage user data retention and ensure regulatory compliance. Additionally, practicing social listening to monitor consumer sentiment is crucial for responding quickly if any controversies arise.