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Press Release

Global Consumer Research: Brands Must Earn the Right to Remember Customer Data

New Topography of Retail Study Asks 15,500 Consumers About Views on Privacy and Personalization, Supply Chain Visibility and Readiness for Facial Recognition, Virtual Sales Assistants and Drone Delivery in Retail

Oracle Retail Industry Forum - Budapest, Hungary —Sep 26, 2018

Despite global awareness of new privacy regulations like GDPR (52 percent) and their desire to exercise data protection rights (86 percent), a majority of consumers value personalized offers in their shopping experience (56 percent) according to a new global consumer study by Oracle Retail. The research signals that retailers have a new responsibility to earn the right to remember customer data by delivering more meaningful brand interactions and rewarding experiences. Retailers are wrestling with this new responsibility as consumers push for more visibility into the service and supply chain and emerging markets seem poised to adopt innovative retail technologies that depend on customer data.

In addition to identifying a desire for more personalized interactions, the New Topography of Retail study also found consumers in North America (87 percent) would request brands remove their personal information if given the option. This trend extends globally with 45 percent of consumers in North America and 34 percent of Europeans noting they would remove their data from all brands they engage with if given the option. Comparably, 90 percent of consumers in LATAM would exercise the right to select which brands have access to their data, as would 91 percent in the Middle East and India and APAC respectively.

“As consumers question the benefit of sharing their information, research shows they want to receive offers that are both relevant and personalized while maintaining a level of anonymity. Retailers have the opportunity to deliver personalized incentives, converting an emotional response towards privacy into a meaningful interaction,” said Mike Webster, senior vice president and general manager, Oracle Retail. “As retailers address data privacy issues head-on, brands who reinvent their approach to consumer engagement, look towards attracting the right customers and recognize that capturing shoppers at the point of intent will drive increased engagement and retention.

”The New Topography of Retail research was conducted in 2018 with over 15,500 consumers across five key regions: Europe (France, Germany, Italy, Spain, Sweden and UK), North America (Canada and USA), LATAM (Brazil, Chile and Mexico), Middle East (Saudi Arabia and UAE) & India and APAC (Australia and China).

Navigating Privacy and Personalization

Although consumers are demonstrating fatigue around sharing personal data, they do continue to want personalized offers and incentives that are dependent on insights from prior brand engagements. Consumers do not feel that brands are successfully recognizing them, as only 16 percent of European consumers agreed that the offers they receive from retailers are always personalized or always relevant. Similarly, only 22 percent of consumers agreed globally. However, 47 percent of global consumers indicated that it would be awesome to receive real-time offers based on what they’ve been browsing online. They also recognize the nuance in offers, with 75 percent of consumers believing that personalized offers from retailers are different to relevant offers.

Emerging Markets Embrace Retail Innovation

Across the board, consumers in emerging markets (57 percent of respondents across Brazil, Chile, China, India and the Middle East) think in-store facial recognition, virtual sale assistants in fitting rooms, kiosks where you can upload an image of an item and get recommendations, and automatic replenishment based on subscription preferences are important compared to only 28 percent of consumers in Europe, Australia and North America.

Trends across emerging markets include:

  • LATAM: Forty-two percent of consumers think that virtual sales assistants in the fitting room are important to their retail experience compared to 45 percent of consumers in emerging markets and 20 percent of consumers in developed markets.

  • Middle East: Consumers recognize the opportunity of facial recognition in their shopping experience: 59 percent believe using the technology to instantly recognize a loyalty member or be used as purchase security (57 percent) is important. Emerging markets also love the idea of being recognized with facial recognition technology to ensure purchase security (61 percent) while only 26 percent of consumers in developed markets share this enthusiasm.

  • India: Sixty-one percent of consumers noted that they love the idea of deliveries by drone or driverless car - nearly double the statistic for consumers in developed markets (32 percent).

  • APAC: Chinese consumers (57 percent) note that they view kiosks where you can upload an image of an item and get recommendations on similar items as important, more than double their peers in Australia (26 percent).

Across emerging markets consumers (64 percent) identified that they loved the idea of using virtual reality to navigate a personalized in-store experience with only 33 percent of consumers in developed markets agreeing on the potential of VR.

Consumers Demand Visibility into Service and Supply Chain

Consumers are demanding greater transparency into retailer operations, service history and supply chains. Over half (52 percent) of consumers state that a key influence on loyalty is knowing that retailers are acting sustainable. This is especially true for grocery (56 percent) and fashion (52 percent) shoppers that state knowing that retailers are acting sustainably and limiting their impact on the environment would influence their loyalty.

Consumers (54 percent) also expect to have visibility into store inventory and be able to research and reserve items for same day pick up in-store. If items are being delivered to their homes, a massive 72 percent of customers expect real-time updates on the location of an item throughout the delivery process.

The New Topography of Retail also identified a new global expectation of service staff to be armed with more information than ever before. A majority of consumers (74 percent globally and in North America respectively) think knowledgeable in store staff are important to their brand experience. Consumers (58 percent globally and in North America respectively) also expect retailers to always know the reason for their returns. North American consumers have even greater expectations of retailers: 60 percent expect customer service teams to know the date of their original purchase and 57 percent expect teams to know the method of payment.

    • To download the full report click here.

    • View extended comments from Mike Webster, senior vice president and general manager, Oracle Retail, on The New Topography of Retail.

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Matt Torres
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