The amount of data being stored is increasing exponentially. And with it increases the risks and issues with data storage, for both retailers and consumers.
Retailers:
- Storage space: Data needs to stored somewhere, leaving data owners no option but to invest in high tech servers or cloud storage. For in house storage, IT teams need appropriate hardware infrastructure such as servers, storage devices, power systems, network connectivity, suitable environment, floor space, equipment racks etc. This can be costly and overwhelming. For third-party storage solutions, data owners must partner with a highly reliable data storage service where they can access the data as needed without the fear of data being altered, deleted, corrupt, or stolen.
- Costs: As data sets grow, so does the cost of storing it. Storage can often cost retailers a big chunk of the IT departments budget. Even with cloud storage there is network costs, transaction fees, data management, data security, and data backup costs to name a few.
- Corruption: Any form of data can be corrupted by stray particles or electromagnetic interference. Or data can naturally degrade overtime even with the highest level of protection. Professional help is required to recover corrupt data, which can cost retailers time and money.
- Security: Data storage comes with the responsibility of keeping the data safe from unauthorised access. Encryption is also important to prevent alteration and theft of data.
Consumers:
Consumers are becoming increasingly aware of data sharing practices and targeting marketing. As a result, they are educating themselves on data-privacy rights and protections.
A survey by McKinsey reveals that only 18% of participants trust retail with their personal data. Thus, consumers are being more intentional about the type of data they share and are more likely to share data if it is relevant to the product.
Companies taking thoughtful approach to data and keeping it safe will be given permission to collect consumer data as consumers now have greater control over their personal data thanks to built-in cookie blockers, ad-blockers, and incognito browsers – the latter already being used by 40% of global internet users.
The lack of trust stems from the high-profile consumer-data breaches such as British Airways in 2018, Alibaba in 2019, and Yahoo in 2017. 87% of people will not share data with companies they have security concerns about; and 71% will stop doing business with companies that share personal data without permission.