MIT Sloan Management Review Article on Why Personalization Matters for Consumer Privacy

A recent survey shows that personalized benefits can help address consumer data privacy concerns.

User data provides companies with rich opportunities for creating personalized experiences and tailoring services to customer needs. At the same time, recent high-profile abuses of consumer data have raised concerns over how companies can strike the right balance between personalization and privacy.

Across the board, people are concerned about brands tracking their activity, but the level of concern varies across activity type.

The level of concern rises, however, with activities that are often considered more intrusive. These include algorithms having full-text access to emails, the use of facial recognition in physical stores, and voice recognition devices listening in while connected in homes.

About the Author

Phyllis Rothschild is a partner in McKinsey’s Boston office, a leader in the Global Consumer Marketing & Sales practice, and coleads the loyalty service Line. Julien Boudet is a partner in McKinsey’s Los Angeles office, and is the North American lead of the marketing service line. Gadi Benmark is an associate partner in McKinsey’s New York office and an expert in digital marketing and personalization.

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