New data from IBM and The Conference Board shed light on changing consumer attitudes to shopping and data privacy
With the 2020 holiday season just around the corner, sustainability is emerging as a key concern for global consumers, according to IBM’s latest study.
The report prepared by IBM’s Institute of Business Value found that 54% of global customers said they are willing to alter their shopping habits to reduce environmental impact. This trend was observed across key emerging markets like India (74%), Mexico (74%), and Brazil (66%). The findings are a minor departure from the findings of the IBM-NRF study conducted earlier this year that surveyed nearly 19,000 customers.
Online vs. In-Store Shopping Contrast in 2020
In a study titled “Home for Holidays,†IBM found that there will be a 1.8% increase in retail sales compared to 2019, while the IBV study confirms that 2020 will be a digital-first shopping holiday season.
60% of consumers indicated that they would be making online purchases while only 28% said they would visit stores for holiday shopping. When it comes to gifts, consumers reported that they would prefer products over experiences. Most respondents stated that they would spend significantly more on indoor experiences and home improvement. In comparison to 2019, 39% more consumers said they would spend more on digital/streaming entertainment, furniture (33% more), electronics (13% more), and toys and games (9% more).
Also read: 4 Ways Retailers Can Bring the Joy of Holiday Shopping To Ecommerce
Most consumers also reported that their travel plans had been impacted due to COVID-19, with half of all surveyed consumers saying they plan to travel less this season. And 67% of those who plan on traveling say they will use either a personal car or rental car as the primary mode of transportation.
How Will Increased Consumer Digital Activity Impact Data Practices
In view of increased digital activity this holiday season, consumer data practices have come under scrutiny. According to a study by The Conference Board, more than 40% of global consumers would agree to be tracked in exchange for discounts on certain services or information related to their current location.
Also read: Top Three Reasons for Smaller Retailers to Deploy SD-WAN This Holiday Shopping Season and Beyond
The study conducted in partnership with Nielsen revealed that people ascribe value to their data and want value in return. Certain discounts and location-related information are their most preferred benefits in exchange for their data. They are least willing to share their facial image and voice to enhance the convenience and personalize purchase suggestions. In some regions such as Europe and North America, even certain discounts can’t overcome many people’s discomfort with sharing personal data, highlighting the importance of a new solution to data practices.
Consumers believe data sharing mostly benefits companies, not them. Globally, only a third of consumers feel that companies’ use of their data has improved their lives. Almost two-thirds feel that personal data mostly benefit companies. Today’s data strategies need to incorporate an education element to explain how the use of personal data benefits customers. Education includes making users aware of free and personalized content and enhanced convenience and services made possible by personal data. For long-term customer satisfaction, companies need to build trust with consumers to ease data-sharing concerns.
Also read: Experimentation Everywhere: Create Online Shopping Experiences To Win This Holiday Season
Globally, one-third of consumers are against third-party data sharing. Almost a quarter find third-party sharing acceptable if they have control over what is shared. About a fifth find it acceptable if data are shared for select beneficial transactions. Overall, receiving money for data seems less popular than enjoying financial savings (free content, discounts) from sharing data: only 15% would accept third-party data sharing in return for monetary compensation. Giving customers a voice in third-party sharing is a way to share select data with external parties while gaining customer trust.
Given these facts, it will be interesting to see how brands respond to increased consumer demand for controlling their data as digital becomes the dominant shopping channel.