Originally posted on Gigaom:
Preserving consumer trust gets a lot of lip service. But a new report from the World Economic Forum actually attempts to translate its value into dollars and cents.
In a study on personal data released this week with the Boston Consulting Group, the report said that while online retail in the Group of 20 countries could reach $2 trillion by 2016, consumers’ perception of trust plays a significant role in enhancing or eroding that value. With more trust, online retail could grow to $2.5 trillion by 2016; with less, it could reach just $1.5 trillion by the same time, they said.
“Given that this $1 trillion range is from just one small part of the broader personal data ecosystem, it provides an indication of the magnitude of the potential economic impact when other sectors (health, financial services, etc.) are considered – potentially in the tens of trillions of dollars,” the report says. That ecosystem includes individuals, as well as data collectors, marketers, data brokers, publishers and other organizations with an interest in using personal information.