Picture this scenario: You approach a physical store, excited to browse, but before stepping inside, you’re stopped by an employee asking for your email and postcode. Would you give it to them? Or would you opt to take your business elsewhere? Strangely enough, this has become a common expectation in the online world. By Jonathan Newman (pictured) , CEO of Motive.co
This practice of data collection has been embraced by major retailers for years, leading smaller businesses to believe it’s the only tried-and-true way to succeed. However, the reality is that retailers can achieve their business goals without having to obtain excessive customer data.
The notion that gathering vast amounts of personal information guarantees sales or provides a personalised experience has lost its credibility, as consumers have become more discerning about sharing their private details online – and with good reason.
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SubscribeComparing shopping expectations: in-person vs. online experience
The expectation of shopping in person vs online shouldn’t be different. The customer’s experience should be the same – if we aren’t asking them for personal information at the door of the physical store, why are we doing this online?
Somewhere along the line, the expectation changed. Handing over data online became almost second nature and ‘the norm’ when buying online. However, times are changing. A study found that over 50% of consumers don’t feel retail brands are doing enough to protect their online data. Further to this, 69% of UK consumers feel cookies and other online tracking practices are intrusive.
Consumers are waking up to the value their personal data holds and to how it’s being used, who it’s shared with and if the retailers they spend their money with are protecting it.
Unsurprisingly, the pair of shoes you’ve had your eye on for the last 2 weeks is no longer worth the barrage of marketing emails you’ll receive for the same pair of shoes after you’ve already bought them.
Recognising the value of personal data in retail
Now that shoppers are more aware of the value their data holds, they’re more sceptical about who they give it out to. If they aren’t receiving a unique, useful or genuinely personalised experience after giving out their email address, postcode or family pet’s name then what’s the point? This has led to a lot of incentivised ploys to get this data – we’ve all seen the ‘10% off on your birthday’ offer.
With this, research from Mckinsey found that businesses building trust into their DNA are more likely to see annual growth rates on their revenue of at least 10% or more. Building trust with consumers has never been more important. Data leaks, data misuse and scams to get data directly from consumers have never been more rife, and these types of breaches to consumer privacy always increase in times of economic uncertainty. Consumers will be looking for retailers who offer to protect their data, and offer them the shopping experience they deserve, without filling in a website form to gain entry.
Harnessing the potential of search
While understanding customer browsing patterns and preferences is vital for retailers, it should not be pursued at the expense of their customers’ privacy. Rather than resorting to intrusive tracking methods, shop owners can leverage data analysis to identify trends and improve the search function’s efficiency on their websites, ultimately boosting sales and enhancing the online shopping experience. By offering personalised suggestions based on similar items or searches without compromising data privacy, search can serve as a helpful virtual shop assistant.
In short, consumers have grown tired of paying for access to online retailers with their personal data. They’re realising that this is no longer necessary, and they will increasingly gravitate towards retailers that prioritise data privacy while providing an enjoyable shopping experience. The same way customer’s wouldn’t tolerate our data being taken at the entrance of a physical shop, they’re now expecting the same level of privacy online.
Retailers must swiftly adapt to this shift in consumer sentiment to avoid falling behind in the ever-evolving digital landscape.
