Swedes are becoming increasingly cautious about sharing information online. Our “Tomorrow Report – Cyber Security” shows both a decline in the willingness to share data and an increase in those who completely refrain from it. Meanwhile, only 2 out of 10 Swedes trust that companies and authorities can protect themselves against cybercrime, reflecting growing concerns about data privacy. These shifts could in turn significantly impact the retail sector, which relies on consumer data for tailored offers, marketing, and customer experiences.
Between 2022 and 2024, Tomorrow Report – Cyber Security show a marked decrease in the proportion of people who feel comfortable sharing personal information online in Sweden. The willingness to share information decreased from 58% to 53%, and the share of those who completely refrain from sharing information increased from 31% to 36%. The report also states that Swedes’ trust in the business sector’s ability to protect themselves against cyberattacks has dropped by 5 percentage points since 2022, from an already low 24% to 19%.
Challenges for retailers
This growing lack of trust is contributing to a decreased willingness to share information online. Overall, this trend could have significant implications for the retail sector, which relies heavily on consumer data to create personalised offers, develop marketing strategies, and enhance customer experiences. Here are some key challenges retailers will face as consumer data becomes less accessible:
1. Reduced precision in marketing
Many retailers use personalised marketing based on consumer data to reach the right audience with the right message. If fewer consumers are willing to share their information, it becomes more difficult to create effective campaigns. This can lead to a drop in conversion rates and sales, as marketing messages become less relevant to consumers.
2. Challenges in the customer experience
A personalised customer experience, where products and services are tailored to an individual’s preferences and behaviour, has become a standard in retail. With less data available, it becomes more difficult to create these personalised experiences, which can result in reduced customer satisfaction and loyalty.
3. Impaired data analysis and decision making
Data analytics is a cornerstone of modern retail operations, with companies using customer data to understand trends, predict demand and optimise inventory management. If consumers become less willing to share information, this could reduce the reliability of the analyses on which companies base their strategic decisions.
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Demographic and regional differences
The statistics from the report also show differences between different demographic groups and regions in Sweden, which means that retailers may need to adapt their strategies depending on the target group. For example, the willingness to share information online has decreased most among women, from 56% to 48%, and in the 65-79 age group, where the decrease was from 50% to 43%. Regionally, the biggest decrease has been in central and upper Norrland, from 60% to 49%.
Retail strategies to meet change
To address the increasing reluctance to share personal information online, there are several strategies and recommendations to consider.
Firstly, transparency is key. By clearly communicating how customer data is used and ensuring that it is done in a safe and ethical manner, you can strengthen trust you are your customers. Offering customers the opportunity to choose what information they want to share through simpler and easier-to-understand privacy settings can also increase willingness to share data.
In addition to his, you can invest in first-party data, i.e., data collected directly from customers through, for example, loyalty programs, customer surveys or interactions in physical stores. This way, retailers can gather valuable information without having to rely on third-party sources.
And finally, as a retailer, you should explore and implement anonymised data analytics tools and AI (Artificial Intelligence) technologies that enable personalised recommendations and insights without compromising customer privacy.
Building trust is crucial
In conclusion, Swedish retailers could be facing significant challenges with this change in consumer behaviour. To adapt to the new reality, it may be necessary to develop new data collection strategies, and it may become increasingly important to invest in technologies that can analyse anonymised data or data from third-party sources. Building and maintaining trust with consumers will be crucial to continue offering relevant and personalised services in an era where data privacy is increasingly important.
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