Over three-quarters (76%) of the Millennial generation (aged 26 – 41) are willing to share their personal data in exchange for discounts, perks and other shopping benefits, according to research from business consultation firm Tata Consultancy Services (TCS).
On the other hand, Generation Z (aged 18 – 25) is more data-privacy conscious, with just 60% willing to share their information in return for shopping benefits, despite the cost of living crisis.
Just over half of Gen X (aged 42 – 57) – who spend the most annually of any generation – also wish to hold back information that may lead to more personalised advertisements.
The TSC survey has also revealed that older shoppers are the most privacy-conscious, with 34% of Baby Boomers (aged 58 – 76) willing to exchange their data. The most reluctant age group are those aged 77 and over – the Silent Generation – with just 25% willing to sacrifice privacy for discounts.
The research – revealing the latest trends affecting retailers and consumers – also found that Millennials are the most likely to spend more with a brand offering digital shopping experiences such as virtual fitting rooms, livestream shopping, cryptocurrency, contactless checkout, QR codes and mobile apps. A whopping 75% admitted that they would spend more money with a retailer offering to shop on an app, compared to just 26% of the Silent Generation. Just over half (55%) of Gen Z is more likely to spend more money with a company offering virtual fitting rooms and staging capabilities, compared to just 31% of the Silent Generation.
Sustainability was also a focus of the TCS survey, with an overwhelming majority of consumers in UK (88%) feeling concerned about whether products are sustainably and responsibly sourced. Around three-in-five people (62%) said that they have paid more for such items. An astounding 79% of Millennials are more likely to consider shopping and spending more with a particular retailer offering rewards for sustainable choices.
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“When it comes to smart data, customer experiences and brand loyalty, one size does not fit all,” TCS head of retail for U.K., Ireland and Europe, Shekar Krishnan, said. “Retailers with expertise in analytics who can utilise personal information and behavioural data will be better positioned to effectively target different age groups and best navigate the complex segmentation and marketing required for a large, geographically dispersed customer base going forward. The same can be said for energy efficiency and smart sustainability solutions.
“As Gen Z and Millennials age and their incomes grow, their spending power and importance to retailers will continue to increase. However, retailers cannot afford to ignore elder generations in future planning. To navigate these emerging trends smartly, retailers must examine how demographic segmentation and greater personalization of brand offerings can deepen customer loyalty, grow market share and increase revenue.
“By focusing on Millennial buying power with tailored products, messaging and offers in the short-medium term, retailers can earn added loyalty and maximise a critical customer segment for years to come. But they must also rethink their marketing strategies, especially online and on social media, to build trust with Gen Z, whose buying power is rapidly rising, and with Gen X, who prefers to find products in-store, online and via TV advertising.”
