The psychology of data: The hidden messages in your digital footprint

Every search, like, and click leaves a trace — but what do these digital breadcrumbs really say about you? Author and professor Sandra Matz joined host Brett Hendrie to explore the psychology of data and how businesses use this information to build detailed profiles, predicting everything from your personality to your spending habits. How much do they really know, and what can you do about it? 

Three takeaways

1. What you do online says so much more about you than you realize. Even the words you use in social posts can be telling about your personality. If you use lots of self-centred language (I, me, myself), it can actually be a sign of emotional distress. And studies from nearly a decade ago show that by simply analyzing a person's Facebook likes and follows, AI can be better at predicting someone's personality than their closest friends and family.
2. And businesses can use this information to influence their consumer behaviour. Matz worked on one study with a beauty retailer that proves the point. For outgoing extroverts, language on the ads highlighted the fun nights ahead, while for introverts the ads focused on self-care at home, and the campaign was hugely successful. But Matz warns, leaders need to be very cautious about using this type of information; after all trust is easily broken and it's a fine line between giving people exactly what they want and need from a company and manipulation.
3. Finally, when it comes to privacy issues, Matz warns it's not your social posts people should be most concerned with. It's our phones. The apps on our phones often have complete access to our photo galleries, location data, and even message history. Managing your data privacy can be a full-time job, but for folks who want to take a first step, she recommends being way more mindful about the permissions you give to companies when downloading your next app or game.