Study: E-retailers that overstep ‘data boundaries’ drive away customers
Online brands must respect consumers’ data privacy if they want to build strong customer relationships — and retain customers.
While 71% of U.S.-based shoppers said they are willing to part with information, such as e-mail addresses and shopping history, in return, they expect retailers to protect their interests (72%); be transparent in how they use personal data (66%), and protect their privacy in the event of criminal investigations (60%), according to “The Global 2017 SAP Hybris Consumer Insights Report,” from SAP SE.
In addition to data privacy, shoppers also expect a high level of service from e-retailers. About 87% of respondents said they expect customer service to respond within 24 hours, while 20% said they expect a response within an hour.
Personalized, exclusive experiences are also priorities among online shoppers. A majority of respondents (61%) chose receiving surprise perks and discounts as their preferred personalized experience. They also appreciate receiving responses from retailers who have a full understanding of their history (53%), relevant product recommendations (43%) and value-added services (42%).
If a retailer breaches the mutual trust and respect it has built with a shopper, the relationship will be immediately damaged. Consumers often will leave a brand if their personal data is used without their knowledge (79%). Just as harmful to the relationship is unresponsiveness to customer service queries and requests and receiving messages that are not relevant to the customer, the report said.
However, there is leeway in the consumer-retailer relationship. Half of the respondents said they were willing to give a retailer a second and third chance, with 50% abandoning brand loyalty only after the same mistake was made more than twice. Certain brand actions, such as sending too many marketing and sales e-mails, will begin to alienate a customer, with 61% of respondents saying they found this irritating.
“The need for a strong customer relationship has been recognized in multiple industries, especially in retail, where consumers have an increasing number of options to choose from,” said Matthias Goehler, senior VP and head of SAP Hybris solutions at SAP.
“To meet shopper needs, leading retailers are embracing business models that deliver a customer-centric culture in every department, not just sales and service,” he added. “A single view of a customer’s profile, fueled with real-time insights, equips all employees to engage contextually and meaningfully with customers, so they feel the appreciation, no matter whom they talk to.”
While 71% of U.S.-based shoppers said they are willing to part with information, such as e-mail addresses and shopping history, in return, they expect retailers to protect their interests (72%); be transparent in how they use personal data (66%), and protect their privacy in the event of criminal investigations (60%), according to “The Global 2017 SAP Hybris Consumer Insights Report,” from SAP SE.
In addition to data privacy, shoppers also expect a high level of service from e-retailers. About 87% of respondents said they expect customer service to respond within 24 hours, while 20% said they expect a response within an hour.
Personalized, exclusive experiences are also priorities among online shoppers. A majority of respondents (61%) chose receiving surprise perks and discounts as their preferred personalized experience. They also appreciate receiving responses from retailers who have a full understanding of their history (53%), relevant product recommendations (43%) and value-added services (42%).
If a retailer breaches the mutual trust and respect it has built with a shopper, the relationship will be immediately damaged. Consumers often will leave a brand if their personal data is used without their knowledge (79%). Just as harmful to the relationship is unresponsiveness to customer service queries and requests and receiving messages that are not relevant to the customer, the report said.
However, there is leeway in the consumer-retailer relationship. Half of the respondents said they were willing to give a retailer a second and third chance, with 50% abandoning brand loyalty only after the same mistake was made more than twice. Certain brand actions, such as sending too many marketing and sales e-mails, will begin to alienate a customer, with 61% of respondents saying they found this irritating.
“The need for a strong customer relationship has been recognized in multiple industries, especially in retail, where consumers have an increasing number of options to choose from,” said Matthias Goehler, senior VP and head of SAP Hybris solutions at SAP.
“To meet shopper needs, leading retailers are embracing business models that deliver a customer-centric culture in every department, not just sales and service,” he added. “A single view of a customer’s profile, fueled with real-time insights, equips all employees to engage contextually and meaningfully with customers, so they feel the appreciation, no matter whom they talk to.”