In the ever-evolving world of eCommerce, building consumer trust and understanding intent is vital for online retailers’ success. However, by following the rapid growth tactics of Big Tech companies, many online retailers miss out on the advantages of putting privacy first and cultivating trust among their customer base.
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Data privacy and consumer mistrust
Big Tech players have set the tone for how companies operate within the digital sphere, with tagging, tracking and targeting all essential parts of their business models. Unfortunately, these practices have also become embedded in eCommerce.
Privacy is a positive
A recent McKinsey study found that almost 1 in 2 (46%) of consumers will consider another brand if the one they are purchasing from has unclear data privacy practices. Additionally, the study highlights that companies that prioritise data privacy and digital trust are more likely to see revenue and EBIT growth of at least 10% annually.
Fostering customer intent
Retailers that adopt a privacy first approach can empower their customers, providing them with control over their data and foster a long lasting brand-customer relationship built on trust. When customers feel empowered and in control, they engage more with brands and this in turn can propel sales for online retailers.
Online retail has long suffered in comparison to in-store shopping experiences, with 60% of consumers looking to shop-in store to avoid online tracking practices. Whilst online retailers can also achieve 4-6x higher conversion rates just by understanding consumer intent as much as an in-person shopping assistant would.
These two figures highlight the key relationship between consumer trust and intent. By fostering trust and bridging the gap between online and in store shopping experiences, retailers can boost shoppers’ intent to purchase and remove digital bottlenecks.
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