Are data sharing concerns still holding back true personalization?
What does being treated as an individual online mean for shoppers? According to a new survey from Cloud IQ, the leading answer is being rewarded with highly relevant offers, 77 percent.
That’s followed by being remembered, 60 percent; feeling listened to/understood, 59 percent; and feeling in control/opting in, 57 percent.
Overall, 69 percent of the shoppers surveyed from the U.S., UK and Australia said they want brands to offer them an “individualized experience online,” and 64 percent expect this.
Yet, while almost two-thirds (64 percent) recognize the value of exchanging their personal data currency for a more individualized experience, more respondents are reluctant (26 percent) than enthusiastic (20 percent) about allowing brands to use information to provide the best possible online experience.
Frequent shoppers who purchase online daily or every few days are more likely to consider themselves “enthusiastic” (26 percent) than those who shop monthly or less (14 percent).
For many, there is a happy medium, either being “brand selective” (28 percent) and allowing a few trusted brands to use this information, or “data selective” (26 percent) whereby they would like to control the amount of data brands use.
The types of data consumers are most happy for brands to use to get a great online experience are:
- Product preferences (85 percent say “yes, definitely” or “yes, possibly”)
- Previous purchase data with that brand (83 percent)
- Communication preferences (79 percent)
- Basic demographic data (79 percent)
The types of data that people are least happy for brands to use to get a great online
- Mood/emotional data (50 percent)
- Friends/family contact details or referrals (50 percent)
- Political preferences/attitudes to societal issues (48 percent)
- Income data (47 percent)
- Identity data (44 percent)
Cloud IQ argues that, for many brands, personalization doesn’t go much beyond e-mails that address consumers by their first name. More transparency, safeguards and guidelines over consent, they argue, will be required for consumers to become more comfortable sharing their data to help brands deliver “real-time, highly relevant and meaningful experiences.”
- Me, Myself & I: The Individualization Imperative – Cloud IQ
- What Makes For A Great E-Commerce Experience? – MarketingCharts
DISCUSSION QUESTIONS: Are consumers getting more accepting of the exchange of personal data for greater personalization? What can retailers do to ease those concerns? How should retailers determine which types of data to use?