Most people wary of location-based services, says Ovum

Derek du Preez

Over half of UK consumers are not comfortable with businesses using location-based technology to pinpoint their whereabouts, according to the latest research from Ovum.
Some 61 per cent of respondents expressed concern about the use of the technology, even when it would improve customer service.

“Consumers to date have very little experience with the location-based services in the context of customer service,” said Ian Jacobs, Ovum analyst.

“So, it is not bad experiences, but rather pervasive concerns about privacy that are creating concerns around location data being misused by businesses,” he added.

“To create a sense of trust, businesses must become more transparent on how the data will be put to use, and show customers some demonstrable value when using location-based services for customer care.”

Only one-fifth of UK consumers are comfortable sharing their location with companies.

The survey also highlighted that only 12 per cent of consumers had used social media for customer services, and 73 per cent said they were doubtful they would use social media sites in the future for customer support activities.