Using consumer data to personalize the shopping experience has proven to be effective, but marketers need to navigate consumer concerns about privacy as well. L2’s Insight Report on Customer Engagement: Data Capture shows risk of backlash can be minimized by combining data voluntarily provided by consumers’ transaction history. And leveraging data does not require using a lot of data, but rather the right kind of data.
Consumers are almost evenly split on privacy concerns, with 47% favoring relevant offers and 53% willing to forgo relevancy for privacy. Relevancy and context matter as the majority of users are thrown off by irrelevant offers. Meanwhile, 44% say they have no issue with companies using their data to improve their shopping experience.
Much of the friction over data collection could be avoided, by simply minimizing the questions. The L2 study finds that the majority of brands ask for seven to nine fields in the account sign up process, when much of that information could be found through transaction history or other consumer interactions. For example, compare New Balance, The Foot Locker’s data collection practices.