Customer Service

How privacy and trust is the new formula for winning customers

Data privacy has become a differentiator that customers are willing to reward. But privacy shouldn’t be treated as a tick box exercise. It has to be treated as a core part of a retailer’s value proposition.

Photo: Generated by AI. Adobe Stock.

November 14, 2025 by Charlotte Scott — Digital Rights Advocate and Global Partnerships Communications Lead, ExpressVPN

As concerns over how retailers use our personal data continue, trust—especially in relation to protecting customers' digital privacy—is becoming an increasingly valuable commodity.

A recent ExpressVPN survey revealed that 92% of Americans say they're alarmed about online censorship, with more than a third describing themselves as "very concerned". At the same time, with the AI revolution taking flight, an overwhelming 91% of Americans are worried about their data being used to train AI models.

Data privacy concerns present a migraine-level headache for retailers. Not only are they having to stay on top of complex data compliance regulations, but they're also having to navigate constantly shifting factors such as global tariffs, purchasing habits, social trends, and new technologies.

But data privacy doesn't have to be a challenge. In fact, if retailers can collect and process customer information in an open, honest and transparent way, it can become a competitive edge.

Privacy concerns abound

The flip side is equally clear: getting privacy wrong erodes trust quickly. According to the Thales 2025 Digital Trust Index, not a single sector in the UK achieved over 50% consumer approval when asked which sectors they trusted with their personal data, indicating a widespread and persistent erosion of trust across industries. Consumers today are highly aware of data breaches, tracking scandals, and "fine print" policies that mask aggressive data collection. When they see these stories, they remember them.

The consequences of mishandling customer data go beyond bad press. Even if customers stay, they may be less willing to provide data, limiting personalization opportunities and ultimately losing their investment. And once the damage is done, public skepticism toward your brand can linger for years.

Given that almost every interaction, from loyalty program sign-ups to personalized offers, depends on customers willingly sharing information, retailers can't afford to ignore this issue.

Privacy pays

Retailers stand to gain a lot by prioritizing data privacy, as research shows a direct correlation between trust and purchase intent. According to Forter's 2024 Trust Report, consumers are willing to spend 51% more with retailers they trust. That directly supports the point that trust not only increases the likelihood of purchase but also boosts spending.

Trust is also becoming a key differentiator. Research shows that customers trying to decide between two similar products are more likely to choose the more expensive option from the retailer they believe acts more ethically.

At a time when retail margins are notoriously tight, data sensitivity can be a powerful competitive lever. If retailers can merge privacy practices into part of their brand identity and create an environment where customers know their data is protected, they can turn concerns into a reason to continue shopping there.

Turning privacy into a loyalty engine

So, how can retailers move from seeing privacy as a compliance burden to making it a loyalty-building advantage?

It starts with transparency and proactively communicating privacy policies in plain language - on the company website or app, and even at point-of-sale. Customers need to feel in control over what data they want to share. Even something as simple as making it easy to adjust data sharing settings can help put the power back in the hands of the customer and can go a long way toward building trust.

As well as publicly communicating how data is used, it's just as important to highlight internal security audits and updates made to improve privacy measures from within a business. Customers like to know you're evolving alongside their concerns and want to hear how privacy fits into the values of the brand. Just as brands can be known for sustainability or innovation, they can also be known for being a privacy-first retailer.

The bigger picture

We're in an era where customer loyalty is fragile and competition is fierce. While price and product still matter, they are no longer the only factors driving consumer choice.

Data privacy has become a differentiator that customers are willing to reward.

But privacy shouldn't be treated as a tick box exercise. It has to be treated as a core part of a retailer's value proposition. That means investing in transparent communication, giving customers meaningful control, and ensuring internal systems and partnerships reflect the same commitment to safeguarding data.

In a market where consumers are worried about how their data is being used, the retailers who step forward with clear, honest, and respectful practices will win long-term trust. In today's economy, that might be the most valuable asset you can have.

About Charlotte Scott

---