Interactions Finds 45 Percent of Shoppers Don’t Trust Retailers to Keep Information Safe
Nearly half of all shoppers have had personal information stolen as a result of a security breach over the last year
SAN DIEGO – June 30, 2014 – Interactions, the global leader in innovative retail services and product demonstrations for retailers and brands, today released its third Retail Perceptionstrend report, “Retail’s Reality: Shopping Behavior After Security Breaches.” Designed to help retailers regain the trust of their shoppers, the report includes insight on how today’s consumers react to the increasing risk of having their information exposed to a security breach.
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, shoppers now perceive retailers 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,” continued DeMeo. “But even after a security breach, we found that 22 percent of shoppers would feel comfortable returning to a retailer regardless of time as long as the retailer fixes the issue and shares that information. In addition, 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.”
For more information on Retail Perceptions and to download the report, please visit www.interactionsmarketing.com/retailperceptions.