Bill Hanifin, founder and CEO of Hanifin Loyalty, said 57% of consumers want a quick checkout experience made with a payment profile. The problem, he said, is that nearly 70% of customers do not want to give the personal data required to create the payment profile.
The main problem is that customers don’t understand what they are getting in return, Hanifin said. “We’ve worn people out by collecting so much data. We haven’t brought it out to them in a usable form,” he said.
Security is also an important part of this issue. “Over half (of consumers) said they’re worried about their points getting hacked, and over 70% thought they had already been victims of fraud,” Hanifin said.
While customers have legitimate concerns about the security of their data, many decide how much or how little data to give based on emotional, not logical, factors, he said. For example, he cited the 4 million people who have sent their DNA to companies such as Ancestry.com. This is undoubtedly highly personal information that could do damage in the wrong hands, but consumers don’t seem to be as concerned about sharing this data. Why?
“You’d like to think that we as consumers are rational, but there’s this perception issue. It all depends on what we think is important,” Hanifin said.