Companies face a ‘paradox’ between digital personalization and data privacy

Dive Brief:

Episerver's "Reimagining Commerce 2020" report states that 25% of consumers use their smartphones to research products and services several times each week, and 18% of them use their smartphones to complete a transaction multiple times per week.
According to Episerver's report, 53% of more than 4,000 survey respondents who shop online daily rely on their smartphones, and 48% said their reliance on their smartphones for shopping in the last year has increased.
The report also noted that 53% of consumers think brands and retailers should prioritize their online anonymity more in 2020. Baby boomer consumers were the most likely, at 56%, to feel that retailers should place more of a priority on respecting consumers' online anonymity this year. However, 39% of Gen Z consumers thought it should be a priority for brands, per the report.

Dive Insight:

Episerver's report further outlines the growing importance of mobile commerce, a factor retailers have been paying attention to for some time. A 2019 BRP report found that 33% of shoppers said they frequently make purchases via their mobile devices, and nearly half of retailers have in-store mobile experience as a priority.

For consumers, other previous reports have outlined mobile shopping habits in physical retail spaces and elsewhere. Research from RetailMeNot found that 69% of in-store shoppers prefer to read product reviews on their phones instead of asking a store associate, and 53% of shoppers want to find deals via their phone instead of talking with a store associate. A Periscope by McKinsey report also found that 60% of consumers shop offline and online equally.

Episerver's report also reveals a desire for consumers to regain control over their online privacy. The report notes that consumers are "conflicted in their desire for both personalization and privacy." As data breaches become more prevalent and the possibility of mobile regulation looms, the report asserts that consumers want convenience, but not at the expense of giving away their data.

"Companies are facing a digital experience paradox," Alex Atzberger, CEO of Episerver, said in a statement. "We've been sold on experience, but hindsight is 20/20. Understanding what customers want, giving them control over how and where their data is used, and leading them to the next best content and action is how retailers ultimately solve for these contradictions."