I have had many discussions with Data leaders within the retail and e-commerce space, and I came across a common pain point between most of them I didn’t quite expect, building trust with Gen Z through data.
Gen-Z is a generation that is known for being digital natives. They have grown up with technology and are more privacy-oriented than any other generation. As a result, retailers, and marketers face difficulty in collecting their data compared to other generations. (This being said, they are also more likely to reuse the same password, then store that with Apple/Google/LastPass, etc) It just seems to be a default decision across everything when it comes to sharing their data.
This is of course a major challenge for retailers who rely on consumer data to deliver personalized and tailored experiences for their customers. So, what can retailers do to improve the chances of collecting data from this demographic?
One study showed that a small financial incentive, around $15, increased the willingness to share data by about 27%. This indicates that immediate benefits must be communicated to consumers to make them aware of the value of providing their data. However, I’m not suggesting we give everyone money if they decide to part ways with their personal data.
To build trust with Gen-Z, retailers and marketers need to be transparent with their data collection practices; And, they must efficiently communicate how this can immediately benefit the user’s shopping experience. This should come in the form of personalized marketing or exclusive access to certain deals or products. Brands must find ways to create a win-win situation where Gen-Z feels valued and rewarded for sharing their data. Online digital giants like Amazon who are leading the way in this form of personalization, will continue to place a large amount of pressure on the more traditional brick-and-mortar retailers.
The real problem lies in building trust with Gen-Z. This generation has grown up in an era of data breaches, and they are more aware of privacy concerns than any other generation before, cyber-security education within schools is a fairly recent thing. So, no wonder they are much more protective of their own data, even with their favorite brands.
Maybe it’s time for retailers to shift their focus from solely collecting customer data to building trust in their data collection practices. By prioritizing trust, they may see a significant improvement in their efforts, especially from the elusive Gen-Z.
Lee Jolley
Lee is a highly motivated and results-driven lead consultant specializing in data and analytics. He has a proven track record of success in identifying, attracting, and placing top talent in the industry.
After several years working in the construction industry, Lee made a career change to talent, leveraging his strong interpersonal and communication skills in his new field. With a passion for building relationships, he quickly established himself as a trusted advisor to both clients and candidates. Read more.
