76% of U.S. Consumers Fear Data Breaches, 64% Prefer Personalized Shopping: Research

According to SOTI’s new retail report, consumers are gravitating toward hybrid shopping models that seamlessly blend online and in-store experiences.

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Social commerce is reshaping how Americans discover and purchase products. Yet, as social platforms increasingly evolve into shopping hubs, 76% of U.S. consumers express growing concerns about data security when shopping online. For retailers, this is the new balancing act – earning consumer trust while delivering the tailored experiences shoppers now expect.

According to SOTI’s new retail report, The Rise of Social Commerce: Turning Tech-Driven Browsers into Influenced Buyers, consumers are gravitating toward hybrid shopping models that seamlessly blend online and in-store experiences. This year's report highlights three key themes shaping the retail landscape: social commerce is fueling growth, security remains a high priority and AI is enhancing the consumer journey with improved personalization.

To build trust and strengthen the social shopping experience, brands and platforms must prioritize transparent data protection and invest in high-quality customer support. SOTI’s report highlights that 70% of consumers express concerns about data security when purchasing through social media, and 61% have abandoned online purchases due to these concerns. For smaller retailers, the challenge is even greater, with 63% of consumers fearing they cannot keep personal and payment data secure.

"Trust is everything in the retail industry, especially as social commerce continues to grow. Retailers must remain committed to maintaining consumer trust, which includes protecting customer data and providing transparent security measures. When 70% worry about their data security when purchasing items through social media, it’s clear that brands and platforms can’t just focus on selling. They need to concentrate on safeguarding data and offering support that truly delivers," says Shash Anand, SVP of product strategy.

Key Takeaways:

    • Retailers are embracing tailored content and advanced technologies to meet growing consumer demand for personalized shopping experiences. SOTI found that 64% of U.S. consumers prefer retailers that offer personalized experiences online and in-store, while 68% are interested in loyalty programs with tailored offers over traditional point-based rewards. Additionally, 62% appreciate proactive efforts by retailers, such as flagging products that may need replenishment.

      • Innovation is key to enhancing personalization, with 57% of shoppers more likely to choose retailers that use technology to personalize in-store experiences and 46% believing AI should deliver tailored offers. While 64% of consumers prefer personalized experiences and 48% view AI as essential for better recommendations, concerns over data breaches and security vulnerabilities continue to erode trust. With 76% of consumers worrying about the security of their personal details when shopping online and 25% uneasy about social media purchase links, a significant gap remains between consumer expectations and reality.        


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