March 9, 2026
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How Can Retailers Create Trusted Personalization Without Being Seen As ‘Creepy’?
In a recent review of the current state of personalization efforts in terms of retail sales, CX Dive contributor Michael Brady outlined both the necessity of the practice as well as the pitfalls attached in the process.
“The challenge for CX leaders is no longer whether to personalize, but how to do so without breaking consumers’ trust, as personalization can feel invasive, unfair or simply incompetent,” Brady wrote, also citing Jeannie Walters of Experience Navigators on the subject.
“When we first started seeing personalization, people often described it as creepy — like, how do you know this much about me?” Walters said. “But now that’s completely flipped.”
Qualtrics data provided by its 2026 Global Consumer Experience Trends report reinforces this divide between effective and ineffective personalization push from retailers, with customers making it very clear that they value transparency and control over their data in exchange for the building of trust.
Qualtrics report authors suggested that consumers are increasingly demanding customized experiences, but on the other hand are increasingly choosy about the level — and type — of data they’re comfortable sharing as part of the exchange.
Some Shoppers Remain Adamant Against Data Collection for Retail Personalization, But a Majority Just Want it to Be Better
While nearly one-third (32%) of respondents to a Qualtrics survey suggested that they’re uncomfortable with all forms of data gathering to form personalized offers, 30% are comfortable with companies learning of their shopping habits, 29% with merchants remembering previous interactions with websites, the same cohort (29%) with retailers pulling together their shopping data points from various places, and more than one-quarter (27%) were okay with algorithms guessing what they might need next. However, only a slim proportion of respondents (16%) were fine with being listened to, or watched, through their devices to form a consumer profile.
“Companies have the privacy equation backward. They stockpile data about who customers are while missing what customers actually need at any given moment. Successful companies will focus on customer context over customer profiles, making personalization feel helpful rather than invasive,” said Isabelle Zdatny, head of thought leadership for Qualtrics.
“But this shift requires transparency. Show customers what you collect, give them control and deletion rights, and, critically, demonstrate how their data improved their specific experience,” she added.
Other data points pulled from the Qualtrics report:
- An overwhelming majority (86%) of shoppers indicated that they would be willing to share their data, provided organizations were “more transparent and clear about its usage.”
- Fewer than half (39%) of today’s shoppers currently believe that the benefits of personalization are worth the costs in terms of privacy.
- Of those surveyed, 46% said more transparency around the data collection process would increase their willingness to share, and 45% said that better control over how it’s used, including the ability to delete information, would do the same. Similar cohorts (43% and 37%, respectively) said that communication about how the security of their data, and clearer detailing of the benefits one would receive in exchange, would enhance a willingness to participate.
BrainTrust
Nicholas Morine
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Discussion Questions
Are retailers doing a good job of leveraging personalization while responding to consumer data and privacy concerns, broadly speaking? Why or why not? Which brands stand out?
In your opinion, what are some of the more creepy or off-putting customization approaches being popularized in today’s retail business? What modifications could be made?
Poll
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First, retailers need to be transparent – explaining that they do personalize and giving some context on how they do it. Even a simple statement like “you looked at this, therefore you might like this” can be reassuring. Second, retailers need to give consumers a degree of control – to say where personalization has missed the mark, or to opt out of certain things. Third, having a wider halo of trust – by being a brand that’s seen as honest and reliable – can help put consumers at ease.
Retailers have made meaningful progress in personalization, but the industry is still learning where the line sits between helpful relevance and uncomfortable intrusion. The best personalization feels like service—it anticipates needs, simplifies discovery, and saves time. When done well, it reflects an understanding of customer behavior rather than surveillance of customer activity. The brands that tend to stand out are those that balance strong data capabilities with clear value for shoppers—Amazon and Walmart on the utility side —and companies like Sephora and Nike that combine loyalty data with curated recommendations and content-driven engagement. These organizations treat personalization as part of the customer experience, not simply a targeting tool.
Where personalization becomes “creepy” is when it appears overly specific, poorly timed, or disconnected from the shopper’s intent. Hyper-targeted ads that reference extremely recent browsing behavior, messaging that reveals how deeply a retailer is tracking someone across channels, or predictive suggestions that surface before a consumer has clearly expressed interest can feel intrusive. The problem is rarely the technology itself; it’s the lack of transparency and context. Consumers are generally comfortable with personalization when they understand how their data is used and when the value exchange is obvious—better recommendations, faster service, or relevant promotions.
The path forward is thoughtful restraint and clearer governance around customer data. Retailers should emphasize permission-based personalization, transparent data use, and controls that let shoppers opt in or easily adjust preferences. Personalization should enhance discovery and decision-making without crossing into surveillance. When retailers anchor personalization in trust—using data to create relevance while respecting privacy boundaries—they strengthen long-term loyalty. When they push too far, even the most sophisticated algorithms can undermine customer confidence rather quickly.
Personalization usually starts to feel off when it gets ahead of the shopper. If I just browsed running shoes and later see recommendations for similar products, that makes sense. But when a brand surfaces something based on data I didn’t realize they had, that’s when it starts to edge into the creepy territory.
Customers want personalization, but on their terms. Brands must respect their customer’s wishes. It’s obvious to track buying patterns and past purchases, but the moment you personalize with something the customer didn’t offer or that’s aligned with what they have bought in the past, trust is broken. So, tell the customer how you will use their information. Let them know how you get the information. Then always err to the conservative approach. Build trust, and over time, you’ll learn more about the customer that you can use to create the personalized experience that they like and get them to come back.
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First, retailers need to be transparent – explaining that they do personalize and giving some context on how they do it. Even a simple statement like “you looked at this, therefore you might like this” can be reassuring. Second, retailers need to give consumers a degree of control – to say where personalization has missed the mark, or to opt out of certain things. Third, having a wider halo of trust – by being a brand that’s seen as honest and reliable – can help put consumers at ease.
Retailers have made meaningful progress in personalization, but the industry is still learning where the line sits between helpful relevance and uncomfortable intrusion. The best personalization feels like service—it anticipates needs, simplifies discovery, and saves time. When done well, it reflects an understanding of customer behavior rather than surveillance of customer activity. The brands that tend to stand out are those that balance strong data capabilities with clear value for shoppers—Amazon and Walmart on the utility side —and companies like Sephora and Nike that combine loyalty data with curated recommendations and content-driven engagement. These organizations treat personalization as part of the customer experience, not simply a targeting tool.
Where personalization becomes “creepy” is when it appears overly specific, poorly timed, or disconnected from the shopper’s intent. Hyper-targeted ads that reference extremely recent browsing behavior, messaging that reveals how deeply a retailer is tracking someone across channels, or predictive suggestions that surface before a consumer has clearly expressed interest can feel intrusive. The problem is rarely the technology itself; it’s the lack of transparency and context. Consumers are generally comfortable with personalization when they understand how their data is used and when the value exchange is obvious—better recommendations, faster service, or relevant promotions.
The path forward is thoughtful restraint and clearer governance around customer data. Retailers should emphasize permission-based personalization, transparent data use, and controls that let shoppers opt in or easily adjust preferences. Personalization should enhance discovery and decision-making without crossing into surveillance. When retailers anchor personalization in trust—using data to create relevance while respecting privacy boundaries—they strengthen long-term loyalty. When they push too far, even the most sophisticated algorithms can undermine customer confidence rather quickly.
Personalization usually starts to feel off when it gets ahead of the shopper. If I just browsed running shoes and later see recommendations for similar products, that makes sense. But when a brand surfaces something based on data I didn’t realize they had, that’s when it starts to edge into the creepy territory.
Customers want personalization, but on their terms. Brands must respect their customer’s wishes. It’s obvious to track buying patterns and past purchases, but the moment you personalize with something the customer didn’t offer or that’s aligned with what they have bought in the past, trust is broken. So, tell the customer how you will use their information. Let them know how you get the information. Then always err to the conservative approach. Build trust, and over time, you’ll learn more about the customer that you can use to create the personalized experience that they like and get them to come back.