Recent data from top fashion shopping app Snapette, a business unit of PriceGrabber, shows that shoppers want to exchange personal demographic and shopping information with retailers for a reward instead of keeping it private, despite controversy surrounding privacy and information-sharing. Conducted on PriceGrabber.com from Feb. 7 to March 7, this survey includes responses from 3,449 U.S. shopping consumers.
Respondents were asked questions relating to four scenarios concerning in-store and online personal information-sharing. Personal information included age, gender, email, clothing/shoe size, and credit card number among others.
Not All Rewards Are Equal
When asked how desirable it was to give retailers personal information for a reward, 50% of all respondents would happily provide retailers with information for a discount. Shoppers are more willing to share their information online than in-store, though in-store information-sharing levels are still high: 48% of all respondents wanted to share their information in-store versus 56% online.
“As private information becomes more accessible through technological advances, retailers should capitalize on shoppers’ growing desire to share personal information,” says Jinhee Ahn Kim, co-founder of Snapette. “Discounts are one great way to incentivize shoppers to actively and enthusiastically share information with retailers.”
To test which reward was most enticing to prompt privacy-sharing, respondents were asked how much of a percent-off discount and then how many dollars off a $100 product they require to provide personal information. The choices for the percent-off (10%, 20%, 50%, and more than 75%) and for dollar-off ($10, $20, $50, and $75) discounts were exactly the same. Nevertheless, significantly more respondents wanted to share personal information if they received a percent-off coupon than dollar-off. Between both in-store and online scenarios, on average 34% of all shoppers preferred 50% coupons, compared to 25% who preferred $50-off gift cards.
Enticing the Consumers More
Amy Chen, Snapette’s director of strategy & operations, says, “To obtain customers’ personal information that can be used to target them better in-store and online, retailers should ease their minds by providing them with a high incentive, more autonomy over their personal information, and more clarity on how information-sharing works.”
Despite controversy over information-sharing, shoppers want to provide information for a reward. Though information-sharing can improve customers’ shopping experiences, backlash against it stems from concerns of information being used improperly and without consumers’ consent
A recent survey from OpinionLab reported that 81% of its respondents don’t trust retailers to keep private data secure. Since half of consumers still need to become accustomed to information-sharing, retailers should emphasize the purposes, utilities, and benefits of information-sharing, like personalized rewards. Such assurance can drive sales from demographic groups more hesitant about information-sharing, such as the lower and higher income brackets, women, and the elderly. www.pricegrabber.com.