How Can Retailers Walk the Tight rope Between Personalization and Privacy?
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Retailers are struggling to find the right balance between personalization and privacy … Personalized offers that consumers talk about and like Source: Capgemini Consulting Social Media Sentiment Analysis, August 2015 * Percentages indicate the “share” of each theme in the positive and negative sentiment respectively meaningfulness trust unintrusiveness Meaningful personalized offers Useful and valuable personalized products Thoughtful, occasion based personalized services Useful and simple loyalty programs Tailor-made, engaging personalized communication 11% 6% 27% 19%* 17% What works What doesn’t 76% 51% 5% 2% 2% Data security issues, such as hackings Intrusive behavior, such as robo-calling and spam messaging Data sharing with third-parties Tracking and monitoring, e.g. face recognition Loyalty programs, which ask for too much data Tesco’s personalized shoelaces for a charity event Ahold’s personalized grocery selection and ordering service Walmart mobile app that sends product and “nearest store” suggestions Kohl’s use of beacons to share personalized offers and aid navigation in-store Consumers welcome personalization, but privacy concerns cast a shadow of doubt … However, they are extremely skeptical about the privacy of their data negative sentiment worldwide about privacy measures taken by retailers positive sentiment worldwide about personalized products and services 80% 93% Only 14% are perceived positively by consumers on both personalization and privacy #digitaltransformation Reach out: Interested in reading the full report? Head to https://www.capgemini-consulting.com/privacy-vs-personalization Follow us on Twitter @capgeminiconsul or email [email protected] The key to success for retailers What is it that consumers expect from retailers? } Strongly Positive Positive Neutral Negative Strongly Negative Build governance mechanisms that prioritize consumer data Communicate proactively, and are transparent with customers Rate limit personalized communication Demonstrate an active value exchange to their customer Do not trust algorithms blindly Give consumers control over their data Use technology unobtrusively ! - Each bubble corresponds to conversations for a particular retailer - Size of the bubble indicates total number of consumer conversations about the retailer’s personalization and privacy initiatives - Axes scale from -100 to 100, with 100 indicating the most excellent score on positive customer sentiment and -100 indicating the lowest score on negative customer sentiment } Consumers are strongly positive about retailer personalization initiatives Personalization Privacy Global – 80% Global – 7% * Percentages indicate the degree of positive sentiment France 0% Spain 8% Germany 0% UK 9% Italy 0% Nordics 0% Australia 2% North America 7% North America 78% France 42% Spain 44% Germany 50% UK 81% Italy 100% Nordics 100% Australia 82% Consumer sentiment varies widely across the globe … How Can Retailers Walk the Tight rope Between Personalization and Privacy? DIGITAL TRANSFORMATION INSTITUTE +100 (Great) +100 (Great) Privacy Personalization -100 (Poor) The Aspirants The Laggards The Favorites
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Transcript of How Can Retailers Walk the Tight rope Between Personalization and Privacy?
Retailers are struggling to �nd theright balance between personalizationand privacy …
Personalized o�ers that consumerstalk about and like
Source: Capgemini Consulting Social Media Sentiment Analysis, August 2015
* Percentages indicate the “share” of each theme in the positive and negative sentiment respectively
meaningfulness trustunintrusiveness
Meaningfulpersonalizedoffers
Useful and valuablepersonalized products
Thoughtful,occasion basedpersonalizedservices
Useful andsimple loyaltyprograms
Tailor-made, engagingpersonalizedcommunication
11%
6% 27%
19%* 17%
What works What doesn’t
76%51%
5%2%2%
Data security issues,such as hackings
Intrusive behavior,such as robo-callingand spam messaging
Data sharingwiththird-parties
Tracking and monitoring,e.g. face recognition Loyalty programs,
which ask for toomuch data
Tesco’s personalizedshoelaces for acharity event
Ahold’s personalizedgrocery selectionand ordering service
Walmart mobile appthat sends productand “nearest store”suggestions
Kohl’s use of beaconsto share personalizedoffers and aidnavigationin-store
Consumers welcome personalization,but privacy concerns cast a shadow of doubt …
However, they areextremely skeptical
about the privacyof their data
negative sentimentworldwide aboutprivacy measurestaken by retailers
positive sentimentworldwide aboutpersonalized productsand services
80% 93%
Only 14%are perceived positively
by consumers on bothpersonalization and
privacy
#digitaltransformation
Reach out: Interested in reading the full report? Head to https://www.capgemini-consulting.com/privacy-vs-personalizationFollow us on Twitter @capgeminiconsul or email [email protected]
The key to success for retailers
What is it that consumers expect from retailers?
}
Strongly Positive Positive Neutral Negative Strongly Negative
Build governancemechanisms thatprioritize consumer data
Communicateproactively, andare transparentwith customers
Rate limit personalizedcommunication
Demonstrate anactive valueexchangeto their customer
Do not trustalgorithms blindly
Give consumers controlover their data
Use technologyunobtrusively
!
- Each bubble corresponds to conversations for a particular retailer
- Size of the bubble indicates total number of consumer conversations about the retailer’s personalization and privacy initiatives
- Axes scale from -100 to 100, with 100 indicating the most excellent score on positive customer sentiment and -100 indicating
the lowest score on negative customer sentiment
}
Consumers arestrongly positive
about retailerpersonalization
initiatives
Personalization
Privacy
Global – 80%
Global – 7%
* Percentages indicate the degree of positive sentiment
France0%
Spain8%
Germany0%
UK9%
Italy0%
Nordics0%
Australia2%
North America7%
North America78%
France42%
Spain44%
Germany50%
UK81%
Italy100%
Nordics100%
Australia82%
Consumer sentiment varies widely across the globe …
How Can Retailers Walk the Tight rope Between Personalization and Privacy?
DIGITALTRANSFORMATION
INSTITUTE
+100 (Great)
+100 (Great)
Priv
acy
Personalization
-100 (Poor)
The AspirantsThe Laggards
The Favorites
