Lack of Trust and Negative In-store Experiences Drive Consumer Attitudes in Sharing Data With Brick and Mortar Retailers

New ClickFox research finds Target the least trusted company with which to share personal data.

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ClickFox identifies a lack of consumer trust with sharing data with retailers

Denver, Colorado (PRWEB) April 01, 2014

ClickFox, the pioneering leader in customer experience analytics, today announced findings from its first 2014 Consumer Behavior and Data Survey. The survey examines differing consumer behaviors and incentive preferences toward sharing personal information online versus in-store.

While a majority of respondents did not identify a company they trusted the most with their data, Amazon, Wal-Mart and grocery brands ranked as the second, third and fourth most trustworthy by consumers. ClickFox research identified Target as the least trustworthy company to share personal data. On the other hand, ClickFox’s 2013 Holiday Survey, which was published in Dec. 2013, revealed Target was named one of the top retailers offering best customer service from respondents.

Recent headlines aligned consumers in their distrust of brands having personal information with 60 percent of respondents noting they do not trust online or offline retailers with their data. Consumers said previous breaches of consumer data (32 percent) and distrust of the retailer (28 percent) will prevent them from sharing data with brick and mortar stores.

Research revealed a trend of consumers preferring online shopping rather than stepping foot into a brick and mortar store. Only 40 percent of respondents are comfortable with brick and mortar retailers collecting the same data e-commerce sites have traditionally captured. This new data reinforces findings from ClickFox’s 2013 Holiday Survey, which noted 55 percent of consumers planned to do the bulk of their shopping online.

Brand Trust Critical to Gain Consumer Approval with Data Capture
Trust continues to be a major theme for consumers when considering sharing personal data with brands. Consumers said they would be most willing to share personal data with a brick and mortar retailer if they have personal brand loyalty (32 percent) or had a previous positive experience at the store (37 percent).

Leading causes of negative service experiences in brick and mortar stores are unmotivated staff (39 percent) and lack of staff training (25 percent). These beliefs reinforce the consumer perspective that brick and mortar stores cannot provide custom service experiences. Seventy-five percent of respondents said they don’t expect brick and mortar stores to have knowledge of their purchase history.

"Brand trust is the critical ingredient for shoppers to buy into the data sharing programs necessary for targeted brand marketing and service campaigns driving in-store purchasing decisions,” said Joe Galvin, CMO-EVP of ClickFox. "Consumers do not forget negative experiences, whether it’s a data breach or a lousy in-store experience. They’ll continue to resist sharing their data with retailers and may opt out of promotional campaigns until they see the personal and immediate benefits doing so.”

Incentives for Sharing Personal Data
Brick and mortar stores incentivize customers in an effort to capture customer data. ClickFox’s survey reveals that while customers are seeking personalized shopping experiences, they are only comfortable being engaged through certain channels and for specific reasons. Consumers are more willing to share location data with brick and mortar retailers if they receive free shipping options (27 percent), unique offers (23 percent) recognition of prior service experiences (22 percent), new product recommendations (16 percent) or location-specific offers (12 percent). This data demonstrates brick and mortar retailers need to create more personalized shopping experiences for customers. Simply providing personalized coupons may not be the right answer for everyone.

Fifty- three percent of all respondents said receiving coupons on their email from a mobile device as a result of in-store tracking would not bother them while the other 47 percent replied that it would. However, 46 percent of consumers noted they would be comfortable receiving personalized, in-store offers via a mobile application. On the other hand, 29 percent of consumers are open to the growing trend of in-store Wi-Fi to receive coupons.

What’s the Future for Brick and Mortar?
The future for brick and mortar will be drastically different because providing excellent customer service proves to be expensive and customers are apprehensive to share personal data. Online shopping is cheaper, faster and easily collects every type of consumer data, which consumers accept because the benefits outweigh the detractors. “Shopping is like romance—there’s a place for introductions online and in the physical world so brick and mortar retailers will never completely disappear,” said Joe Galvin. “They’ll have to transform and provide more personalized service. We’ll see flagship, boutique and specialty stores that are all part of the culture of shopping—everything else will be online.”

Key Findings

  •     Target named the least trustworthy company to share personal data; Amazon, Wal-Mart and grocery stores name most trustworthy
  •     Over 60 percent don’t trust online or offline retailers with their data
  •     40 percent are comfortable with brick and mortar retailers collecting the same data online retailers collect
  •     Consumers are willing to share data with brick and mortar retailers
  •     32 percent need to have brand loyalty
  •     37 percent need to have had a positive experience at the store
  •     Leading causes of negative service experiences:
  •     39 percent said unmotivated staff
  •     25 percent said lack of training
  •     53 percent said receiving coupons via email from a mobile device as a result of in-store tracking would not bother them while 47 percent replied it would

Methodology
The ClickFox 2014 Brand Loyalty Survey audited 312 consumers in February 2014 on shifting consumer attitudes toward in-store behaviors. Respondents were 46 percent male and 54 percent female. The research evaluated a broad range of generational attitudes with 24 percent ages 18 to 29, 24 percent ages 30-44, 28 percent ages 45 to 60, and 24 percent ages 60 and up. Consumers polled leaned towards the affluent with 24 percent earning <$50,000, 30 percent earning between $50,000 to $99,999, 14 percent earning $100,000 to $149,999, and 32 percent earning more than $150,000 per household.

Access the infographic here: http://www.clickfox.com/how-we-think/news-events/2014-clickfox-consumer-behavior-survey.

Discover the results from the 2013 Brand Loyalty Survey here: http://www.clickfox.com/news-events/clickfox-survey-reveals-apple-leads-04092013/.

Additional ClickFox information is available at http://www.clickfox.com and on the ClickFox Customer Experience Analytics Blog at http://www.clickfox.com/blog . Join the team on Twitter, Facebook, and LinkedIn.

About ClickFox
ClickFox is the market leader of a new breed of experience analytics software and solutions, analyzing behavior for more than 17.6 billion consumer journeys across every channel available to consumers. ClickFox with its CEA Platform provides a visually intuitive mapping of all customer interactions -- from IVR, retail, Web, and email to agent CRM desktops, mobile devices, interactive kiosks and more -- delivering unparalleled visibility into end-to-end customer journeys. Deployed by Fortune 500 enterprises, including some of the largest telecommunications companies and financial institutions, ClickFox has a proven track record of helping world-class service providers dramatically boost operational efficiency and profitability.

CONTACT INFORMATION
Danielle Maglione
Edelman for ClickFox
Email Contact: danielle(dot)maglione(at)clickfox(dot)com
650-762-2958


Contact

  • Jeff Gossman
    ClickFox
    +1 (415) 595-1584
    Email

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