Retailers must proritise consumer privacy as demand for personalisation growsFebruary 25, 2021
The personalisation of retailers marketing communications can easily breach consumer privacy, so it is of utmost importance that retailers deliver positive consumer experiences while avoiding the downsides of reputational, operational, legal, and financial risks.
Covid-19 has forced retailers and consumers to make a digital shift
Covid-19 has dramatically shifted brick-and-mortar purchases online as lockdowns and social distancing have accelerated the adoption of e-commerce. Consumers that had previously been reluctant to shop online have embraced e-commerce. A GlobalData survey found that while it is most popular among those aged between 25 and 44, 60% of consumers aged 65 and over said they had shopped online in the last month. Consumers who have developed e-commerce shopping habits over the past year are unlikely to shop in stores as much as they did before the pandemic.
GlobalData forecasts that the global e-commerce market will be worth $2.2tr in 2020, up 40% from 2019. Amid the shift to e-commerce, several retailers have now adopted personalisation as a part of their customer loyalty strategy. Personalisation strategies often raise the issue of data privacy and how retailers use consumer data. Finding the right balance is often challenging.