Why do consumers change brands? Research

Sunday, September 21

Many brands around the world have issues with the loss of customers’ personal information. However, data leakage not always causes the loss of loyal consumers. YouGov recently conducted research in 17 markets to study the reasons people switch to new brands and how do customers react to the data leakage.

What are data leaks?

Data leaks are the unauthorized transmissions of information from within an organization to an external destination or recipient. This transmission can be digital, for example via emails, websites, or physical such as loss of documents, laptops, USB keys, etc.

Consumers share their personal data when they are buying products or services. People leave their credit card information, or medical records because they trust the organization to keep it safe and secure. And of course, no one wants their info leaked out to the world. When this happens, many customers don’t trust brands anymore and switch to other companies.

As the YouGov research showed, just 15% of consumers say they have switched brands because of data loss issues. Much more people are switching to other brands because of other reasons. Among them, the researchers highlighted low environmental records (21%), product failures (23%), poor treatment of employees (23%), and lying about product performance (31%).

Why do consumers change brands? Research

Source: today.yougov.com

But of course, this is not the final data as consumers’ habits vary from country to country. YouGov’s study showcases that people from the Asia-Pacific region are more likely to change the company because of the data leakage. The study indicates that consumers in Hong Kong (30%), Singapore (25%), Indonesia (24%), China (21%), and India (20%) have switched brands after data incidents.

As for the western countries, consumers in Denmark (5%), Sweden (7%), and France (10%) are least likely to indicate they’ve changed brands because of the data leak. 12% of British consumers and 18% of American consumers admit that they switch the brand if the data loss happens.

The research discovered a slight difference in consumer behavior between age groups. As it happens, younger customers aged 18-24 (17%) and 25-34 (18%), are more likely to ditch the brand because of the personal data loss than older consumers aged 55+ (12%).

As the research shows, data leakage is not the main reason why people change brands. But data loss is a big deal for at least 15% of global customers. So, if brands want to keep their customers, they definitely need to keep their data secure.

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