News

Survey says 45 percent of shoppers don't trust retailers to keep their data safe

July 1, 2014

Retail marketing firm Interactions has released its third Retail Perceptions trend report, "Retail's Reality: Shopping Behavior After Security Breaches."

According to the report, 44 percent of shoppers surveyed have had personal information stolen from a security breach. The risk is higher for the core millennial market, with 60 percent of 18-to 24-year-olds indicating they have had their information stolen.

"When shoppers' information is exposed, not only does it damage the store brand reputation, but it also impacts profitability and productivity throughout the entire organization," said Giovanni DeMeo, Vice President of Global Marketing and Analytics at Interactions. "Whether or not your store has been directly affected by a data disaster, your shoppers now perceive you differently — and are changing their shopping behaviors because of it."

Of those shoppers surveyed whom have had their information stolen through a security breach:

• 85 percent tell others about their experience,
• 33.5 percent use social media to complain about their experience, and
• 20 percent comment directly on the retailer's website.

In addition, an overwhelming 45 percent of shoppers indicated they do not trust retailers to keep their information safe, and when shoppers know that their retailer has experienced a security breach:

• 12 percent say they have stopped shopping at that retailer, and
• 36 percent will shop there less frequently.

"Nearly every industry and type of data has been exposed to a security breach, and retail is no stranger to this threat," said DeMeo. "But even after a security breach, we found that 23 percent of shoppers would feel comfortable returning to a store within a month, while 52 percent would still sign up for a retailer loyalty card. This proves that retailers can regain trust if they have the right measures in place to combat security breaches moving forward."