Industry Spotlight: Data Sharing and Customer Trust in Retail
In today’s retail landscape, data is the engine powering personalized experiences, operational efficiency, and business growth. Yet, as retailers collect and leverage more customer data, they face a dual challenge: meeting rising expectations for tailored engagement while maintaining customer trust and complying with evolving privacy regulations. Publicis Sapient’s research reveals that the path to success in retail is not just about collecting more data, but about using it responsibly, transparently, and in ways that create genuine value for both customers and the business.
The State of Data Sharing and Trust in Retail
Retailers are uniquely positioned in the data economy. Every interaction—whether online, in-store, or via mobile—generates valuable insights. However, our global surveys show a significant trust gap: 61% of consumers know little to nothing about what companies do with their data, and 40% believe their data is worth more than the services they receive. This knowledge gap is a barrier to trust and engagement, but it also presents an opportunity for retailers to differentiate themselves by leading with transparency and value.
The Value Exchange: Why Customers Share Data
Consumers are increasingly aware of the value of their data. They are willing to share information, but only when the benefits are clear and tangible—such as personalized offers, exclusive access, or enhanced convenience. Retailers that can articulate and deliver a fair value exchange are better positioned to earn customer trust and foster loyalty. Our research shows that personalized offers based on spending preferences and personalized content to help with shopping are among the top features shoppers want from online retailers.
Privacy Concerns and the Impact on Loyalty
Privacy is no longer just a compliance issue—it’s a core component of the customer experience. Many consumers worry about misuse of their information, lack of control, and the risk of data breaches. Notably, 32% of global participants said they would be more willing to share data if companies made it easy to delete their information. Retailers that empower customers with control over their data—through clear consent management and easy-to-use privacy tools—can turn privacy into a loyalty driver.
The Role of First-Party Data and Customer Data Platforms (CDPs)
As third-party cookies and legacy identifiers disappear, first-party data—information collected directly from customers with their consent—has become the foundation of modern retail strategy. First-party data enables:
- Personalization at scale: Tailoring offers, content, and experiences to individual preferences.
- Omnichannel engagement: Connecting online and offline interactions for a seamless customer journey.
- Compliance and risk mitigation: Ensuring data is collected and used in line with regulations and customer expectations.
Customer Data Platforms (CDPs) are central to this transformation. According to Publicis Sapient research,
64% of companies have adopted some form of CDP, with privacy and compliance as the top drivers. CDPs unify data from multiple sources, resolve customer identities, and enable real-time activation of insights across channels. Retailers using CDPs report greater success in improving transparency, driving loyalty, and personalizing experiences.
Practical Steps for Retailers: Building Trust and Value
To thrive in the data-driven future, retailers must go beyond compliance and make trust a strategic priority. Here are actionable steps based on Publicis Sapient’s research and industry expertise:
1. Close the Knowledge Gap with Radical Transparency
- Clearly communicate what data is collected, why, and how it will be used.
- Use plain language—avoid legal jargon—and provide educational resources to help customers understand the value and risks of data sharing.
2. Empower Customers with Control
- Offer easy-to-use tools for customers to access, correct, or delete their data.
- Make consent management simple and granular, allowing users to choose what they share and with whom.
- Honor global privacy signals and opt-out mechanisms across platforms.
3. Create a Fair Value Exchange
- Ensure that the benefits customers receive are clear, tangible, and commensurate with the data they provide.
- Personalize offers and experiences based on explicit consent and stated preferences.
- Regularly review and update your value proposition to keep pace with evolving expectations.
4. Segment and Personalize by Privacy Sensitivity
- Use CDPs and consent management systems to detect privacy sensitivity and tailor experiences accordingly.
- For privacy-sensitive customers, emphasize security, control, and minimal data collection.
- For less sensitive segments, focus on maximizing value and convenience.
5. Build Trust Through Consistent, Ethical Practices
- Adhere to the highest standards of data security and privacy compliance.
- Be proactive in communicating changes to data practices or policies.
- Respond promptly and transparently to data incidents or customer inquiries.
The Business Case: Data Trust as a Competitive Advantage
Building consumer data trust is not just about avoiding risk—it’s a strategic imperative for growth. Retailers that lead with transparency, control, and value will unlock richer data, deeper engagement, and stronger customer loyalty. As privacy-sensitivity becomes a new axis of personalization, the ability to adapt to individual preferences will define the next generation of customer-centric retail.
At Publicis Sapient, we help retailers navigate the complexities of data strategy, privacy, and digital transformation. By translating global consumer insights into actionable strategies, we empower brands to build trust, create value, and thrive in the data-driven future.
Ready to build a data trust advantage? Connect with Publicis Sapient to learn how we can help you turn consumer insights into business impact.