Consumers skeptic of retailers data privacy claims: Capgemini

Consumers skeptic of retailers data privacy claims: Capgemini

Retailers blur line between privacy infringement and personalisation

Consumers worldwide aren't convinced at all by retailers’ privacy initiatives, according to the recent report, Privacy Please: Why Retailers Need to Rethink Personalisation, conducted by Capgemini Consulting, part of the Capgemini Group.

The study found that 93 per cent of consumers are skeptical of retailers privacy initiatives and two main factors contributing to the negative sentiment was data security (76 per cent) and intrusive behaviour by the retailer (51 per cent).

Report findings were sourced from a social media sentiment analysis of more than 220,000 conversations over six months covering 65 global retailers that collectively generate revenues of more than $1 trillion.

The blurred line between data collection and intrusion was a key finding of the report. Technology perceived as intrusive was high regarding in-store traffic monitoring (84 per cent negative) and facial recognition (81 per cent negative).

Additionally, only 14 per cent of retailers were perceived positively by consumers on both personalisation and privacy initiatives. A significant number of brands antagonised customers with nearly 29 per cent of consumers reporting dissatisfaction due to intrusive loyalty programs, excessive promotional mail and confusing opt-in/opt-out instructions.

“The deluge of hacks on retailers’ data and misdirected personalisation initiatives are having a dramatic effect on consumers’ trust.The advent of digital shopping and Big Data analytics promised a golden age for retailers, but many of the world’s largest brands are finding the reality of safeguarding and properly utilising this precious information very challenging,” Capgemini global consumer products and retail consumer engagement lead, Kees Jacobs, said.

“Capgemini is supporting the work, in collaboration with world leading retail companies and The Consumer Goods Forum, on a defined set of Consumer Engagement Principles that provide guidelines and best practices to safeguard against such issues and help maintain consumer trust.”

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Tags Capgemini GroupCapgemini ConsultingKees Jacob

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