Shoppers Willing to Share Personal Info—For a Price

In What's New, Industry News by Accessories Staff

PriceGrabber Snapette Privacy Price INFONew York—Recent news about data breaches of card numbers and other personal information at Target and Neiman Marcus may make consumers wary—unless there’s a discount deal involved, that is.

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 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.


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