Consumer does not want to share too much data (yet)

The average Dutch consumer is not willing to share his date with retailers just yet. According to an ABN Amro report, that willingness to share has even dropped in the past two years, with customers wanting to know what retailers will do with the information provided.

Older consumers are not as willing

70 % of all respondents said they were willing to share their personal information with a retailer if the latter is transparent about the reason for that information. Consumers do expect to get a financial bonus in return for the information, like a discount. Local, independent entrepreneurs will get access to this data more quickly.

57 % says their personal information is not available to physical stores, while 60 % refuses to share information with a web shop. The older the respondent is, the less likely he or she is to share information.

Willingness to share information has dropped the most with consumers aged 30 or older, probably because of new marketing techniques which display ads based on internet behaviour. Many consumers still feel that is a breach of privacy.

Trust is important

Customers are more likely to share information with companies they trust, if they are informed about how the data will be used. According to ABN Amro, 54 % are actually not aware about the purpose of the data collection.

Local retailers and chains that have a more personal approach benefit from that trust issue, while physical stores have an edge over web shops in this regard.

“New technology helps data analysis and leads to successful results, but there is no miracle solution for big data. It could offer retailers new insights to improve their turnover and profitability, but they will need to communicate clearly with consumers. They will need to explain why they want to gather data and what they will do to guarantee the customer’s privacy”, ABN Amro Sector Banker Retail’s Henk Hofstede said.

“Retailers should start small and if they all move forward gradually, the options are legion provided they focus on actual goals with the data collection and clearly communicate these goals to the customer. Customer data has to be secured at all times however.”