Commentary

Breach Fatigue: Consumers Don't Give Up On Brands Because Of Data Leaks

Email addresses have been stolen, data has been leaked. Big stores are hacked every day, it seems.

The reaction from consumers? Ho hum. They are suffering from breach fatigue, according to a study by UJET Inc. in partnership with Branded Research Inc.

While 77% worry about security, only 29% say a recent major breach would cause them to stop shopping at a store. And only 24% of millennials agree.

Brands have to be aware of privacy regulations and security issues, the study notes. And they should know that consumers are wary about AI. But only up to point.

What shoppers are concerned about is customer service.

For 66%, the customer experience is as important as the product itself or the price, with 71% of boomers concurring. That figure falls to 60% among millennials. But 55% of the latter group will write a negative review if they have had a bad experience, vs. 38% of boomers.

In addition, 24% of millennials have reported an unpleasant experience to a customer service department, expecting a discount or coupon. But only 14% of Gen Xers have done that, and 2% of Boomers.

When contacting customer support, only 10% chose email as their preferred channel. In contrast, 32% would rather speak to a store associate, and 25% would prefer to call by telephone, while 10% would choose online chat.

Millennials don’t like to be sold — they would rather buy and return the wrong item than speak to a customer associate in a store. 

Chatbots are seen as being ineffective by 58% overall, and 56% would rather speak with a service rep to resolve an issue. However, Millennials and Gen Xers prefer brands with online chat.

Of those polled, 69% have made a purchase in a physical retail store and 65% via a laptop or tablet. Only 30% have bought by smartphone. 

“Online as well as brick-and-mortar retailers are wise to optimize support through real-time communications built on smartphone-era technology,” said Anand Janefalkar, founder and CEO of UJET.

Janefalkar adds: “Consumers enter their support requests through a variety of entry points and companies must meet them wherever and whenever they demand help to create loyalty.” 

Branded Research surveyed 1,505 consumers.

 

 

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