by Edward Drax, Managing Director of Yocuda
As more retailers and advertisers adopt digital solutions and integrate them into their campaigns, we’re seeing a significant change in the way businesses interact with consumers. Nowadays, shopping is more than just going to the store and checking out. Consumers connect with companies and brands through a variety of platforms, including mobile, click-and-collect, in-store and online. This brings new expectations for businesses to provide individualised experiences and seamless, tech-enabled interactions.
Since the pandemic, shoppers have become more comfortable experimenting with both in-store and online tech. In fact, Visa found that over 70% have adopted techniques like contactless payments, and mobile purchasing. Not only does this signal a readiness for digital convenience but also an openness for in-store data solutions. Consumers are calling on brands to provide end-to-end digital services and as people lean more into digital-first interactions, retailers can engage customers on a new level. They can offer curated experiences that feel personal, while maintaining both transparency and control over privacy.
While digital adoption is accelerating, so too are consumer expectations for personalisation. UK consumers are increasingly on the lookout for a more personalised touch from retailers. Our 2024 consumer report echoed this sentiment showing that 63% of consumers would like retailers to personalise their offers based on their shopping history across both in-store and online. This figure rises to 70% in shoppers aged 26-35 years. Consumers want their favourite brands to show that they truly care, whether that’s offering a deal on their favourite coffee or a recommendation for a product that fits their style. Shoppers who engage with
brands across multiple channels, they all expect offers and recommendations that feel tailored to their preferences and habits.
Digital receipts are a huge untapped source which can deliver on all the above. With open rates of 75%, they are one of the most engaging touchpoints in retail. They allow retailers to identify more customers, continue the conversation past the point of purchase and provide reams of invaluable customer data. This data can be used to enhance retailer’s personalisation strategies and to go to another level of customer engagement through targeted promotions, product information or brand communications.
There is a strong alignment between loyalty programmes and consumer demand for digital receipts. The majority of shoppers (67%) are members of 3 or more loyalty programmes and, when using them in-store, 80% express a preference to receive digital receipts for each purchase. Evidently, loyalty cards create a natural entry point for digital integration. Retailers should provide an experience that links loyalty programmes with digital receipts or risk being left behind by more digitally savvy brands. It will make it easier for shoppers to track loyalty points and, for retailers, to drive more footfall in-store.
But just as the benefits of personalisation are clear, so are the rules around data security and consent. Privacy concerns gnaw at every well-timed sale or carefully considered proposal – especially in a world where data breaches and aggressive tracking from Big Tech are common. Misuse of information and constant tracking is making shoppers worry that giving away their data means giving up their privacy.
Unlike data-hungry algorithms or overreaching apps, digital receipts offer a safer and more streamlined approach and consumers do not need to be concerned about their data privacy. As long as the solution is implemented properly by the retailer and a reputable digital receipts provider, they are stored as securely as any other customer data captured via POS systems, loyalty programmes and eCommerce platforms, with all the best practise encryption, security protocols and access controls. Also, scannable QR codes and POS systems mean that customers don’t have to spell out their email or phone number in-store, which could be deemed a security risk. This is a far cry from the data collection practices people associate with Big Tech.
In regards to consent, a digital receipt cannot be sent without the customer asking for one and either providing an email address / mobile number or scanning a QR code or NFC reader. This permits the retailer to send the digital receipt to the customer, but a retailer cannot then use the same customer data to opt them into marketing communications automatically. For that, the retailer would need to ask the customer expressly for their permission.
Digital receipts are redefining retail by baking in privacy alongside personalisation. As more shoppers continue the craze for tailored experiences, digital receipts provide brands with the opportunity for carefully chosen deals based on real purchases. Plus, they can do so while respecting data boundaries and complying with strict privacy laws. For retailers, it’s a clever, secure way to foster longer-term customer loyalty, deliver personalised shopping and ultimately increase profitability. For customers, it’s a far better customer experience as they never again have to worry about finding that paper receipt for a return.
