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Study: 45% of shoppers don't trust retailers
There is a growing mistrust of retailers, and the mistrust has a lot to do with data breaches. According to the new Retail Perceptions report from Interactions, nearly half (45%) of consumers say they don't trust retailers to keep their personal data safe. Meanwhile 60% of 18-24 year olds say their information has been stolen.
"When shoppers' information is exposed, not only does it damage the store brand reputation, but it also impacts profitability and productivity throughout the entire organization," said Giovanni DeMeo, Vice President of Global Marketing and Analytics at Interactions. "Whether or not your store has been directly affected by a data disaster, your shoppers now perceive you differently - and are changing their shopping behaviors because of it."
Some interesting takeaways from the report include:
• Once shoppers know about security breaches 36% say they 'shop there less frequently'
• 12% say they 'stop shopping' at retailers post-breach
• 33.5% of shoppers use social media to complain about shopping experiences
• 20% complain within retailer sites
• 85% will talk about retail experiences
"Nearly every industry and type of data has been exposed to a security breach, and retail is no stranger to this threat," said DeMeo. "But even after a security breach, we found that 23 percent of shoppers would feel comfortable returning to a store within a month, while 52 percent would still sign up for a retailer loyalty card. This proves that retailers can regain trust if they have the right measures in place to combat security breaches moving forward."
Image via Shutterstock
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