LOS ANGELES—A new study reveals that two-thirds of online buyers don’t think retailers’ data security measures are strong enough to protect their card and personal data.
The report from Bizrate Insights also indicates that retailers courting Generation Y have less to worry about than brands targeting older generations. Gen Y shoppers are substantially less likely to agree that retailer data security isn’t strong enough, while seniors and boomers are likelier to be on the other side of the spectrum.
The Bizrate Insights Payment Security Study #2 shows that while 69% of Boomers are distrustful of brick-and-mortar purchases, only 45% of Gen Y feel the same way. For website buys, 65% of Boomers lack trust, while the figure is 47% for Gen Y. For the same age groups across mobile channels, the numbers are 71% and 51%, respectively.
What’s causing the anxiety? Across all consumer groups, 43% indicate it’s the regular reports of information being stolen from retailers, 17% say it’s due to their own personal information being stolen, 12% believe the store won’t take good care of them if there is a problem, while 10% tend not to trust employees, companies or technology.
“These frequent breaches, whether experienced personally or vicariously through the news, make many buyers think twice before purchasing,” stated Bizrate Insights. “This apprehension . . . could represent considerable loss in revenue for retailers.”
The study was conducted via the Bizrate Insights survey platform and offered to online buyers immediately after purchasing from the Bizrate Insights Network of over 5,000 e-commerce retailers in the U.S. and Canada. Data from the study was collected from 4,902 online buyers from Jan. 7 – 12, 2015.
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