We asked consumer research agency Walnut to quiz more than 2,000 shoppers across the UK about how much they trust the nations’ supermarkets with their data – and the results are in
We are in the era of loyalty and personalisation. In an increasingly online world, retailers have sought every opportunity to give shoppers the same level of personal customer experience they might expect from an over-the-counter grocer of years gone by.
So much so that we’ve even heard rumours of supermarkets exploring bespoke ready meals tailored to shoppers’ genetic make-up – an offering that would certainly one up the greengrocer.
But hyper-personalisation requires unbridled access to some of shoppers’ most confidential information. Do they trust retailers with it? And, more importantly, what do they want in exchange for handing it over?
To gauge the mood of the nation when it comes to sharing their details, we asked consumer research agency Walnut to quiz more than 2,000 shoppers across the UK about how much they trust the nation’s supermarkets with their data.
More than half of shoppers trust supermarkets enough to hand over some information but, unfortunately for health fanatics, it looks like we’re some way off lasagne tailored to our DNA as fewer than 20% would share medical information.
This may change as time goes on, however, as a willingness to share details about ourselves is higher among the younger population. And supermarkets are more likely to get people from the south of England to share data than Scots or northerners.
Younger people also more likely to be confident that the data they share with their supermarket will be safely handled.
“Younger consumers who have grown up with technology in their pocket have fewer issues with sharing data, simply because it is what they have always done,” says Walnut research director Amy Nichols.
“There is less suspicion and greater awareness of what companies do with this data. That being said, it is still important for brands to connect with customers and provide valuable meaning to why a customer should share data.
“Many people are sharing data simply to gain a discount for signing up, particularly in the cost-of-living climate. This short-term gain does not build longer loyalty and, indeed, many can feel cynical about why they are being asked for details.”
This willingness to share information is even more interesting when considering the swathe of cyber-attacks that have cropped up across retail, which have not only put shoppers’ data at risk but caused havoc at the HQs of Spar, JD Sports and more in recent years.
Although no customer data was compromised, a cyber-attack at The Works resulted in months of disruption and a trading period that chief executive Gavin Peck would rather forget.
“It was bizarre,” says Peck. “I just woke up in the morning to a WhatsApp message saying: ‘We’ve had a cyber-attack – you need to come into the boardroom.’
“We completely unplugged everything and I didn’t have email access for nearly six weeks. It had a big impact on the trading of the first two or three months of the year just gone.
“Thankfully, the year turned out well and results have been well received, but certainly not the smoothest start to the year. All I will say is I never want to go through that again and I wouldn’t wish it upon anybody else.”
So what do shoppers want in exchange for their precious information? Perhaps unsurprisingly in the current climate, they say a reduction in the price through an offer or promotion is the most effective way to get them to share.
However, whether or not offering cheaper prices pays off depends on the level of information your bespoke experience requires you to collect.
Instead of dangling price cuts, Mamas & Papas has approached getting to know its customers better by offering advice and support as the motivation for collecting shoppers’ intimate data about pregnancy and babies.
“The role of data is crucial in helping us better understand our customers so we can build a supportive and useful community around the brand,” says Mamas & Papas chief executive Nathan Williams.
“More recently, we began capturing customers’ estimated due dates to help us better personalise our support. This means we can be there for customers during those moments that matter with practical and useful support, and hold their hand during the journey.
“So, for example, when we know baby is about to start weaning, we can provide expert advice on recommended feeding products. Given the need for support when becoming a parent for the first time – and the trust people have in our brand – we find our customers tend to give their information willingly because they see the value in joining a community like ours.”
The three Cs
When exploring the carrots worth dangling in exchange for trust, according to financial technology platform Adyen, the best way for retailers to get shoppers on board is to understand the “three Cs”.
“There are three things shoppers care about,” says Alexa von Bismarck, Adyen’s president for Europe, Middle East and Africa.
“One is they want to be in control. So they want to know when and who they give data to.
“Next is convenience, so they want to have an easier checkout. For example, if I’m a Chinese shopper on a luxury fashion brand, I want to make sure I can use Alipay or WeChat to pay, rather than taking out a credit card I never use.
“And the third point is context. And that’s what we’re seeing now with personalised experiences where, for example, I’ve purchased running shoes online and that’s recognised in store, and I can get a discount on the sportswear there because they know I’m into running.”
As loyalty becomes an intense battleground on which to win favour during the cost-of-living crisis, expect to see even more personalisation from the nation’s retailers – even if we are still some way from a bespoke lasagne.
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