More Than a Quarter of Customers Abandon Brands Over Privacy Concerns

The Digital Customer Trust Index, supported by Thales, reveals a growing mistrust among consumers. They are concerned about how online retailers handle their personal data.

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More Than a Quarter of Customers Abandon Brands Over Privacy Concerns — Source: Depositphotos

Data from the Thales Digital Trust Index report shows that only 8% of consumers feel comfortable sharing their information online. This lack of trust has led to a significant drop in customer retention, with up to 26% leaving brands due to privacy concerns.

The report, based on a global survey, found that logistics and social media are among the least trusted industries. Retail is also struggling to maintain its reputation, with trust levels in the sector set to fall from 20% in 2022 to 8% in 2024.

Source: Thales

Are you listening to your customers?

Consumers are demanding strong privacy and data security measures, just as they do in heavily regulated banking, healthcare and government services. Mistrust is compounded by frustration with online experiences such as intrusive ads and complex interfaces, leading many to abandon sites within minutes.

Source: Thales

Despite regulatory frameworks such as GDPR leading to better practices in Europe, the global retail sector is still lagging behind in implementing effective data protection measures. The report highlights the need for digital retailers to prioritise trust through enhanced privacy and a seamless user experience, as well as adopting flexible, modern systems to meet evolving consumer and regulatory demands.

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