Every retailer knows the power of a great customer experience. From getting a gift card offer when you’re running low on something you buy regularly to getting an email about a “stock-up” sale featuring your most purchased items, smart use of customer data can make shopping feel personal. Even more so, it can be the determining factor for whether a customer shops with your brand. When done right, these personalized touches keep customers coming back.
But it’s a delicate balance using customer data to create memorable experiences without jeopardizing the relationship you’ve built with your customers. Using data thoughtfully is good ethics, but it’s also good business. It builds trust and drives better results for your bottom line, creating personalized experiences that your customers value and trust. Here are some tips on collecting and using customer data in ways that build trust, boost sales and keep shoppers coming back to your store.
Making Shopping Personal: What it Means for Your Brand
Step one is figuring out what personalization means to your shoppers, so you can gather the right information and use the right tools to create special touches. Making shopping personal looks different for every customer, so it’s important to know what your customers care about – down to an individual level. A VIP customer might want exclusive early access to sales, while a busy parent needs automatic reminders to restock essentials. These are all ways to make customers feel valued, but today’s shoppers want an experience that is catered exclusively to them. The key is finding out what matters most by drilling down on exact preferences.
Start Slow to Build Trust
New technology makes it easier than ever to create custom shopping experiences. From smart checkout systems to mobile apps, retailers have more ways to understand and serve their customers. But just because you can collect all this information doesn’t mean you should rush in.
Advertisement
Think about shopping at a new store. You might be happy to share your email for a first-purchase discount, but would you immediately hand over your birthday, phone number and home address? Probably not. Just like your customers, you’d want to know why a store needs this information and how it will be used.
Some shoppers are excited to join your loyalty program and share their preferences right away through zero-party data — information they voluntarily provide you with. Others might want to start with just earning basic points before they’re comfortable getting personalized recommendations or targeted offers.
The best approach? Take it step by step. Start with the basics, like purchase history and loyalty points, and only collect information that helps you serve your customers a little better each time. When shoppers see real value from sharing their data, like relevant deals and better service, they’re more likely to trust your store with additional information down the road.
Protecting Customer Trust: Smart Data Collection for Better Shopping
As retailers, you collect different types of customer data all the time. Some comes directly from shoppers who choose to share it, like when they fill out a loyalty program profile or take a survey about their shopping preferences. Other information comes naturally through purchases, like transaction history and product preferences. Both types can help create better shopping experiences — but only if used thoughtfully.
The key is being transparent and giving customers control. A loyalty program is a powerful way to build customer trust and collect valuable zero-party data. When launching your program, be clear about what information you’re collecting and why. Consider using gamification elements — like points, badges or special challenges — to encourage shoppers to willingly share more about themselves. Maybe you need their birthday to send special offers, or their shopping preferences to recommend products they’ll love. Make these sharing choices optional and show the benefits, like personalized deals or early access to sales.
Work with your legal team to create clear guidelines about what customer information you collect and how you’ll use it. This isn’t just about following privacy laws — it’s about building trust. When customers see that you respect their privacy and use their information to genuinely improve their shopping experience, they’re more likely to stay loyal to your brand.
Remember: good data practices protect both your customers and your business. Being responsible with customer information helps avoid privacy issues and builds the kind of trust that keeps shoppers coming back to your store.
Show Them the Value: Making Data Sharing Worth it for Your Shoppers
Make it worth their while. When asking for details like location services or contact preferences, show clear benefits: “Enable location for exclusive in-store offers!” or “Share your email for 15% off and early sale access!”
The key is delivering on promises. When customers trust you with their information, reward that trust. Have orders ready for pickup. Send relevant deals. Make shopping easier. When customers see real value from sharing their preferences, they’ll engage more with your brand and become loyal shoppers.
It’s simple: show the benefits, deliver on promises, build trust, repeat. That’s how smart retailers turn customer data into stronger relationships.
As Kobie’s EVP of Innovation, Rachel Bicking brings a wealth of experience incubating new products and services by harnessing data-driven strategies to drive customer behaviors. With nearly 20 years in the digital, customer experience and loyalty industries, her career spans multiple solutions architecture and customer intelligence/insights roles. Bicking has spent her career delivering innovation through merging data, analytics, marketing and technology across industries. She injects analytics into both programs and products to generate customer loyalty and lifetime value while enabling clients with deep visibility into their performance and opportunities.
