- Vivian Hendriksz |
London - UK Millennials are said to have shown growing security concerns with sharing their personal information with retailers online - and with over one million daily cyber attacks expected to take place over Christmas, their concerns are certainty not misplaced. Nevertheless, their need for a convenient shopping experience is still bigger than any worries, according to the latest research from global market research firm KS&R, commissioned by LexisNexis Risk Solutions.
The report, which surveyed 400 UK millennials aged 18-34, found that despite this age group being incredibly digitally connected through their smartphones and laptops, more than half were concerned about having their identity stolen online, or via mobile/app-based activities. Women were found to be even more concerned than their male-counter part (65 percent) and a total of 84 percent of millennials said they do not believe their personal information is fully protected online.
UK Millennials do not trust online retailers with their data
On the flip side, researchers also found that 89 percent of millennials still shop online at home, with close to half (47 percent) doing so via their smartphone and nearly a third (29 percent) on their tablet. But 93 percent said they don't fully trust retailers with their data, highlighting the vast difference between what millennials think and do. The flexibility and convenience offered by online shopping is likely to be a bigger pull for task-rich and time-poor millennials, despite their concerns for their online safety.
Unsurprisingly, this Christmas season is expected to contribute to the one of the biggest online shopping days in the UK this year, with revenues for UK retailers predicted to hit 901 million pounds. Black Friday is also set to become one the largest mobile shopping days to date, with more than half of the shoppers participating buying clothing and footwear, despite millennials' security concerns. However, this does not mean UK retailers should not address them.
"These findings highlight the unease that many Millennials feel about information sharing, particularly when it comes to online and mobile transactions," commented Steve Arnison, Director, LexisNexis Risk Solutions. "Retailers today must recognise that customer privacy concerns will continue to increase as society becomes more digitally connected. As such, businesses will need to take proactive measures now to protect their customer’s best interests and meet the demands of an increasingly digitally-savvy customer base."
In addition, the report also found UK millennials struggle with securing credit, as the study found only 38 percent of the respondents own a credit card. This suggest that younger millennials in particular are less likely to have the credit history or a high enough income to qualify for a credit card, another aspect UK retailers should bear in mind if this is their target age group.
However, just because millennials do not have a credit card, does not mean that they turning to cash, as the report found that nearly a fifth (18 percent) of millennials have not used cash at all in the last 60 days. This finding supports research from MasterCard, which indicates that the rise of contactless and digital payments is slowly creating a cashless society.
"As society becomes more digitally focused, retailers may risk losing customers if they do not adapt to the demand for alternative payment such as contactless card terminals and Apple Pay," warns the report.