Retailers missing value of in-store customer data

Research commissioned by Callcredit Information Group has revealed consumers' attitudes towards giving out personal details in store, with many refusing to give them or even faking them.

According to the research, 38 per cent of Brits never divulge their details to retailers, and eight per cent admit to giving out fake contact details to avoid being contacted.

The Yougov research revealed that 64 per cent would be likely to give out their contact details for future marketing communications if they were signed up to the store's loyalty programme (35 per cent), or offered a small financial incentive, such as a discount off a future purchase (38 per cent).

Moreover, 15 per cent said that they would be happy to give out their contact details if they were informed about relevant promotions, products and services in future; given the chance to be part of an exclusive store club (11 per cent); or if they were simply asked by a friendly and approachable person (nine per cent).

The 'flirt factor' has the biggest impact on men and young people, as10 per cent of men and 17 per cent of 18-24-year-olds would give out their details if they were asked for them by someone friendly and approachable in store.

The research into consumer shopping habits also reveals that 12 per cent of Brits are planning to shop from their phone this Christmas to avoid the rush in stores.

The majority of these respondents are classified as 'Accomplished Singles' by Callcredit's Cameo Lifestyle consumer classification.

These are a highly affluent, upwardly mobile, energetic and ambitious group of singles, typically aged less than 45.

Of people who have mobile phones that allow them to shop online, 15 per cent said they would purchase clothing, footwear or accessories this Christmas, while 12 per cent would purchase electrical goods, not including mobile phones.

However, the reality is that while mobile shopping is appealing to some demographics, technology is a barrier as 41 per cent say they do not have the capacity to do so on their phones.

Even more surprisingly, 78 per cent of people who do not purchase items on their phone, but have the capability of doing so, say they would not like to do so in future.

This includes 58 per cent whose main reason is that they prefer to use other methods, such as going in store or shopping online, and 15 per cent have concerns about safety and security issues.

According to Callcredit's Cameo Personal Finance segmentation, the majority of respondents that have never made a purchase via their mobile phones are classed as 'Sophisticated Savers', while consumers that have made a purchase via their phone are likely to be 'Seldom Savers'.

Kevin Telford, director at Callcredit Information Group, said: 'The results reveal that retailers are missing a big trick, as customers are most engaged with a brand at the point of purchase in store.

'While consumers have to give out contact details to make a purchase online, they are often more reluctant to do so in store - but will if they are offered a small incentive or provided with information about products and services relevant to them,' he added.

The research highlights the importance of taking a more holistic approach to customer interaction and recognition.

Telford said: 'Stores remain critically important both as a showroom for the website but also in capturing consumer data.

'Asking a customer for a mobile number when delivering goods to let them know they are on the way, or sending a thank-you e-mail with the best next offer can be done very easily.

'It is simple to bring in dedicated customer-facing experts to personally capture this data, yet it is a model that many retailers would not have considered as they often fail to realise the value of this data,' he added.

In the run-up to Christmas, Callcredit is highlighting the importance of engaging with customers.

Telford said: 'As more people will be using their mobile to buy presents this year, it is easy to see the returns available through the multi-channel shopping customer.

'Customers want to feel respected - the most successful campaigns are those which customers opt in to receive communications and freely provide their data.

'Once you have this, make sure you engage with them in the most effective way through integrated campaigns, using the right channel at the right time.

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