How Can Retailers Walk the Tight rope Between Personalization and Privacy?

1. 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 dti.in@capgemini.com
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?
DIGITALTRANSFORMATION
INSTITUTE
+100
(Great)
+100
(Great)
Privacy
Personalization
-100
(Poor)
The AspirantsThe Laggards
The Favorites