Privacy Concerns May Keep Consumers From Applying for Credit Programs

privacy-conceptFor many large brands, online retailers and small business owners alike, getting consumers to apply for in-store credit is a goal for increasing sales and profitability. However, there are a lot of challenges to getting consumers to take that first step. A recent study suggests that an important factor in all of this are privacy concerns.

A recent survey by Vyze found that about nine in 10 consumers have been asked to fill out a credit application at the checkout, but only about 60 percent do so. There are a variety of reasons why this would be the case, such as the time it takes to fill out applications. However the Vyze study showed that for many consumers, they have serious concerns about their privacy.

According to the story, of the 40 percent of people who do not fill applications, a fourth (26 percent) say they worry about the security of their information when giving it to a store clerk. This isn’t just an issue for in-store applications and clerks. Of those who fill out the applications later online, 24 percent of those in the survey, 41 percent say they have data security concerns.

Privacy concerns have been a growing concerns for consumers and this concerns manifest itself in many different consumer behaviors. This data suggests that in-store credit offers are particularly vulnerable to this issue. It’s something businesses should consider when crafting their marketing strategy for these programs.

“Retailers have invested tremendous energy and resources into extending credit offers to shopper, but there is a significant gap when it comes to consumer response,” said Keith Nealon, CEO of Vyze. “This survey shows that there is great opportunity to stand out and differentiate based on providing multiple financing choices, clear security messaging and the experience itself – in both the store and online channels.”

Before this information starts to look too negative, there was a lot of data that shows the benefits of having these kinds of offers for customers. According to the survey respondents, 8 in 10 shoppers ‘would consider’ using credit to make purchases. So getting people to sign up would be beneficials.

There’s also evidence in the report that shows it people are willing to take on credit cards that go beyond the major credit cards. Of the survey respondents, four out of 10 wanted additional credit options. Of those who wanted additional options, some of the most popular requests included store cards (57 percent), non-store cards (27 percent), and layaway programs (22 percent).

One way business owners can compensate for the privacy issues is offer customers deals and cards they want so much, they’re willing to take the perceived risk. The Vyze study offers some data that can be useful in that regard.

According to the report, rewards/incentives are the most important (59 percent) factors in determining if someone will apply for a card, followed by having a simple application process (51 percent), and a fast credit approval process (40 percent).

The Vyse study shows that there are privacy concerns that may keep people from applying for in-store credit, but the benefits of getting people to sign up makes it worth the effort.

For more recent research that can improve your marketing, read this article on mobile devices and redemption rates.

Peter Roesler (1291 Posts)

Peter Roesler president of Web Marketing Pros has an extensive background in all things marketing, social media, and search engine optimization. His impressive work history includes VP of Development at AppSoft Development, Director of Multimedia at Advantage Services, and Creative Director at Mammoth Technology. He is continually drawing upon his own talent and skill to help small-to-large corporations all over the Nation improve their overall Internet standing and appearance. Among his experience, Peter thoroughly enjoys the continual challenge that SEO work brings. To keep up with the ever-changing dynamic of optimization, Peter studies and researches about up-to-date methods and standards of the process. When he's ahead of the game, your company is too.

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