A massive 78% of people are more likely to trust a brand if it’s transparent about the personal data it’s collecting and how it’s used, according to our 2025 CX Trends Report, A Human-Centered Approach to Customer Experience.
This strongly held opinion seems like a compelling incentive for brands to be candid about their data collection and use. But are brands doing enough to provide their customers with a transparent data exchange? Let’s find out.
People are getting savvier about data use
The vast majority (98%) of the more than 2,000 people we surveyed are already aware that brands are using their data to tailor marketing and advertising messaging and strategies. They also are starting to understand the benefits of sharing data to drive this type of personalization, especially among younger demographics. In the 16-34 year old age group:
- 64% see the benefit of sharing data to see more relevant product or service advertisements, compared with 44% in the 55-and-older age group.
- 63% see the benefit of sharing data to get recommendations for new products or services on websites they’re browsing, compared with 39% in the 55-and-older age group.
- 62% see the benefit of sharing data to receive targeted discounts on products or services, compared with 52% in the 55-and-older age group.
However, the younger people who appreciate the benefits of data sharing are also more likely to have concerns about data privacy. Overall, a third (33%) of survey respondents say they’ve stopped using a product or service due to concerns around data transparency and the way data is used. This percentage rises to 45% for the 16-34 age group. It seems transparency isn’t just a nice-to-have – it has become a prerequisite.
Brands think they’re being transparent
About two-thirds of the brands we surveyed for the 2025 CX trends report are already collecting personal data, engagement data, or behavioral data to inform their marketing campaigns. Overall, they’re confident about their collection and use of customer information:
- 68% of brands believe they offer a clear value exchange.
- 79% say their organization has a good understanding of data privacy laws.
- 63% report they only collect customer data that will actually be used.
As the VP of Marketing Strategy at a retail and investment bank told us, “We try to be as transparent as possible, telling our customers about the personalized benefits that help them manage, save, and grow their money. But to offer those benefits, we have to know things about our customers – if we’re helping them save for a holiday, we have to know what their budget is. So we have to be very clear with our T&Cs during the onboarding process.”
But customers don’t necessarily agree
The data suggests that even though brands believe they’re doing their best to operate with transparency, there remains an important gap between brand and consumer perceptions. Here are two key examples:
- Understanding: 67% of brands believe their customers have a good understanding of how their data is used for marketing and advertising. However, only 56% of those people say this is the case.
- Expectations: 78% of brands think they’re meeting customer expectations around personal data collection. But just 49% of people say they’re satisfied with the data transparency companies provide.
The good news is that when asked how their data collection practices will change in the next three years, brands say their number one focus is making it easier for people to understand how their data is being collected, stored, and used. So how should they go about achieving this?
Customers must be at the heart of data strategies
The future of data exchange will be centered around the customer. The report reveals that brands can build strong, trusting relationships with those customers by focusing on three key areas:
- Invest in a robust cloud-based infrastructure capable of securely storing and managing vast volumes of data, and use enterprise identity solutions to create a unified customer view.
- Articulate a clear and compelling value exchange with tangible benefits that really resonate, encouraging customers to share their data willingly.
- Implement easy-to-understand privacy policies that clearly communicate how data will be used and empower people to easily control the types of data they share.
Read Acxiom’s 2025 CX Trends Report, A Human-Centered Approach to Customer Experience to discover what 200 senior marketing professionals and more than 2,000 people in the U.S. and U.K. think about the five trends that we predict will shape CX this year. You’ll also benefit from expert guidance on how you can use these insights to grow your own business.
