Deloitte’s “U.S. Consumer Data Privacy” study surveyed 2,000 consumers to gain insights into their concerns about data privacy and their expectations for retailers to protect it. Deloitte also surveyed 201 retail executives on data privacy to understand how retailers differentiate across a series of privacy tenets. Nearly 3 in 4 consumers (71%) are willing to share personal data if they receive better pricing, special discounts or exclusive offers. And consumers who are satisfied with privacy policies are more likely to be open or neutral about sharing personal data (73%), compared to those who are unsatisfied or unaware (57%).
Retailers should become data-wise and privacy-conscious
Consumer privacy is at an inflection point in retail, with significant business, financial, and regulatory reasons for retailers to act now. Not only are consumers becoming increasingly aware of threats to their privacy, but nearly half of U.S. states have also introduced or enacted new privacy legislation, impacting 54% of the population. In California alone, the California Consumer Privacy Act introduces some of the most stringent regulations and the cost of noncompliance is too high to ignore.
Growing regulatory concerns
The survey found that 75% of retailers believe regulations will have a moderate to a significant impact on their business. However, only 22% have optimally integrated their data privacy plan with corporate and business unit strategic planning. This misalignment could be a significant opportunity, considering 62% of retailers have more than 50 information systems (e.g., spreadsheets, customer relationship management systems, email, point-of-sale) holding consumer data in their organization, which increases the vulnerability of their data.
“While some retailers have moved the bar on data privacy, there is still a lot of work to do. The retail industry should advocate for a consumer privacy standard putting consumer centricity at the core and trust as the guide. Transparency with consumers about what you collect and how you use it can go a long way in developing trust.
Retailers who focus on consumer privacy as a strategic growth driver are poised to create more meaningful data, enhance consumer engagement and reduce exposure to risk, all while staying ahead of the evolution of privacy in the consumer business.”