Data security concerns rise among social commerce users

According to a new report by SOTI, concerns regarding data security in online transactions are growing among consumers, with many still engaging in social commerce for its convenience.

SOTI's report titled "The Rise of Social Commerce: Turning Tech-Driven Browsers into Influenced Buyers" explores the expansion of social commerce and its impact on the retail industry. The report reveals an increasing preference among consumers for hybrid shopping models and highlights that mobile-first and application investments are significantly altering shopping behaviours.

Michael Dyson, VP of Sales & Marketing, APAC, at SOTI, commented on the consumer shift towards personalised experiences. "Consumers are increasingly drawn to personalised shopping experiences, with 59% preferring retailers that can tailor their offerings both online and in-store," he said. "However, this enthusiasm for personalisation comes with a critical consideration—54% would not shop with a store if they felt AI was being used to monitor their purchases. This highlights the fine line retailers must navigate between delivering tailored experiences and respecting customer privacy."

The research outlines that 83% of consumers express concerns about entering personal details online or into in-store devices, a significant factor that retailers need to address. Shash Anand, SVP of Product Strategy at SOTI, stated, "Data breaches and vulnerabilities have eroded consumer trust, heightening the fears of data theft and fraud. As a result, 83% of consumers are hesitant to enter their personal details into online or in-store devices. Security concerns must be addressed in-store and online, with retailers needing to implement robust measures to protect consumer data in this growing wave of social commerce and instil confidence in store and online to keep their customer loyalty."

The report further shows that while 63% of Australian consumers find mobile phones the most convenient means of making purchases, 44% perceive social media as a swift method for keeping up with trends. This makes social commerce an increasingly critical channel for retail expansion. Nevertheless, the study acknowledges challenges arising from this burgeoning retail channel.

Significant issues cited in the report include fulfilment disruptions and communication breakdowns. Of those making purchases through social media in the past six months, 35% experienced delayed delivery, 28% received little to no communication about the delivery status, and 20% lacked updates on product availability after showing interest.

Anand also addressed security concerns related to social commerce: "Security concerns must be addressed in-store and online, with retailers needing to implement robust measures to protect consumer data in this growing wave of social commerce and instil confidence in store and online to keep their customer loyalty."

The study indicates a prevailing consumer need for shopping platforms that balance personalisation with privacy, supported by secure payment processes and effective supply chain management to meet these evolving expectations.

SOTI's report surveyed 12,000 consumers aged 18 to 65 from 10 different countries, providing comprehensive insights into the dynamics shaping the modern retail environment. Key markets surveyed included the United States, the United Kingdom, Canada, and Australia, amongst others.