Overwhelming number of UK’s millennials lack trust in online retailers
2nd Dec 2016
A whopping 93 per cent of the UK’s millennials said they do not fully trust retailers with their data, but the need for convenient shopping means they are forced to assuage their fears each time they process an online basket.
With another Cyber Monday done and dusted and November’s payday now firmly in hand, the UK’s millennials will be well underway with spending both on the high street and online. But a new report from LexisNexis Risk Solutions has found that the web-savvy sector of the population aren’t as laid back about e-commerce as their fluency with online shopping would suggest.
The report, UK Millennial Study: Privacy vs. Customer Experience in Retail, found that despite millennials being digital converts via smartphones and laptops, 52 per cent are concerned about having their identity stolen through online or mobile/app-based activities, with 65 per cent of women polling as concerned. The research also found that 84 per cent of millennials do not believe that their personal information is fully protected online.
This weigh-off of risk versus convenience and choice of online shopping continues further into the research, with 89 per cent of millennials still shopping online at home, 47 per cent on their smartphone and 29 per cent on their tablet. But 93 per cent said they do not fully trust retailers with their data.
LexisNexis suggested the figures could show that as a task-rich, time-poor generation, the convenience and flexibility of online shopping still prevails. Not only does the research highlight millennials’ security concerns, but it also demonstrated the challenges they face today in a post-recession climate, including the barriers against securing credit.
The study found only 38 per cent of millennials own a credit card, suggesting younger millennials in particular are less likely to have the credit history or income to qualify for one. With affordability criteria for loans and mortgages much harders to come by, a shift in priorities for millennials and how they view financial security is vital for understanding how they spend.
Surprisingly, the finding also showed that 18 per cent, or nearly a fifth of millennials have not used cash at all in the last two months (60 days). As society becomes more digitally focused, retailers may risk losing customers if they do not adapt to the demand for alternative payment such as contactless card terminals and Apple Pay.
Steve Arnison, director of LexisNexis Risk Solutions explains: “These findings highlight the unease that many millennials feel about information sharing, particularly when it comes to online and mobile transactions. Retailers today must recognise that customer privacy concerns will continue to increase as society becomes more digitally connected. As such, businesses will need to take proactive measures now to protect their customer’s best interests and meet the demands of an increasingly digitally-savvy customer base.”
While retailers focus on the convenience and scope of online shopping, it’s clear the consumers that have been raised as online shopping natives are not naive to the threats these relatively new modes of purchasing also raise. While they’re happy to try these new channels, using trusted payment methods and secure transactions are still a huge priority, and a background concern for nearly all millennials spending money online.
My Retail Media
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