App privacy: What Brands Need To KnowReading Time: 3 minutes
In today’s article, we keep going further on this app privacy challenge with Part 3 of our 4 part series. In our last article, we’ve seen how bringing value to one app could solve the app privacy challenge as app users are engaging in an app privacy trade off when downloading and using an app.
Brands leveraging apps to reach out to possible prospects and engage with consumers has became more and more popular over the last couple of years. As a matter of fact, a recent study from Metova found that more than half of U.S. consumers would opt to do business with a company based on the mobile experience it offers compared with competitors (2018).
Branded apps: what?
A branded app is a software downloadable to a mobile device, which prominently displays a brand identity, often via the name of the app and the appearance of a brand logo or icon, throughout the user experience.
As a result of the technological advancements during the past years, the way in which brands interact with consumers has visibly changed. More and more marketeers have generated considerable interest in employing apps to interact with potential and existing customers (Wang et al., 2016). These apps are often used as a platform to attract new customers, to increase brand loyalty and brand awareness, or to enhance the brand experience (Kim et al., 2015; Wang et al., 2016).
Apart from that, branded apps can also serve as tools for collecting data about potential and existing app users. For instance, when downloading the app of the popular fashion retailer ZARA, app users grant ZARA permission to monitor their general Internet usage, to combine this information with demographic information and information that is publicly available about them, and to share this data with third parties. The aim of this data collection is for brands to offer their users the best user experience possible.
But with the recent GDPR implementation, the multiplication of security breaches among big names such as Facebook’s recent massive data breach, or the fact that 61% of the people are uncomfortable with sharing their location information with websites and applications (Kaspersky Lab 2018), are brands and branded apps not suffering from their users’ privacy concerns?
Social Contract Establishment
When a user shares info with a branded app, he starts what is called a “social contract”.
We might assume that the breach of this social contract established between the user and branded app would result in a negative outcome for the brand.
One major finding of Dr Verena Wottrich’s research is that app intrusiveness does not seem to have an effect on consumers’ app and brand perceptions when the brand is originating from a real brand to which consumers have a neutral stance in terms of brand attitude, or when they perceive added value into the app.
App Privacy: Why Brands Need To Provide Value To Their App Users
Value is King
The key learning in this app privacy article is that branded apps need to provide their users with sufficient value if they want to be able to collect relevant data among their users.
As soon as the app user has entered the social contract with the brand, the data collection operated from the brand won’t show any negative effect on the user’s attitude towards the brand.
By collecting relevant data among its users, apps are able to monetize better while delving deeper into their clients profiling, always providing them with the right services and features.
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