Privacy-orientated consumers are cautious about the popular ‘give to get’ retail strategy, according to the latest annual Shopper Survey from industry research firm IDC Retail Insights.
Released on May 5, the ‘Green Lights and Bright Red Lines: Relevancy and Privacy Challenges for 2014’ report found consumers are more concerned about protecting their data than receiving retail rewards.
The ‘give to get’ retail strategy involves encouraging consumers to share their personal information with retailers in order to inform future purchases and create lasting customer relationships.
Perhaps surprisingly, the majority of respondents to the IDC survey claimed they would be unwilling to share personal details with retailers even if it meant they earned something in return. Just 14 per cent would readily give retailers their private information in exchange for some form of retail reward.
“Retailers have to learn to earn the privilege of engaging consumers based on such information as activities on social networks, mobile apps, 3rd party apps, and YouTube,” said IDC Program Director, Merchandise Strategies, Greg Girard.
“‘Give to get’ dispositions aren’t simply matters of age. In addition to brands serving young adults, those that provide superior customer service, sell high-attachment products, and cater to higher income shoppers attract disproportionately larger audiences of guidance seekers and privacy spenders.”
The IDC survey revealed consumers were generally split into equal halves regarding privacy and retail relevancy, with 53 per cent preferring to keep their details private, compared with 47 per cent who prefer relevancy.
However, 62 per cent of consumers are concerned they do not have enough control over their privacy when sharing information with retailers.
From a retailer’s perspective, the IDC recommends business owners consider the strategy as a ‘learning to earn’ opportunity, as this supports the need for retailers to boost their brand and value to increase consumer trust.
However, only around 50 per cent of retailers around the globe have a formal process in place for managing ‘give to get’ data, which creates significant risks for individual retailers and consumers. In Australia, privacy laws have recently undergone significant changes to help protect customers’ personal information. Understanding this legislation will help retailers in Australiamake the most of the ‘give to get’ retail trend.