TELUS: Shoppers want data trust as privacy beats convenience

Retailers face growing pressure over how they handle customer data as fresh survey findings show consumers across Canada and the United States now weigh privacy and trust heavily in their shopping decisions.

New research from Canadian telecoms group TELUS indicates that about eight in ten shoppers in both countries say they are more likely to buy from companies they trust. Around two-thirds say they now place data privacy and trust above convenience when choosing where to spend.

The findings of this study, which polled 5,487 Canadian members and 6,109 American members of Leger's online panel, point to a widening gap between expectations and perceptions. Fewer than four in ten consumers in either market believe that organisations respect their personal information, despite rising shopper scrutiny as the holiday peak approaches.

Trust shapes spend

The survey reports that 78 per cent of Canadians and 80 per cent of Americans are more likely to buy from companies they trust.

It also finds that 70 per cent of Canadians and 72 per cent of Americans actively consider how a company treats their data when deciding whether the business is trustworthy.

The data suggests trust now functions as a basic requirement in many purchasing decisions. TELUS says 66 per cent of Canadians and 71 per cent of Americans place more weight on privacy and trust than on convenience when shopping.

"People know their data has value, and they're choosing to do business with companies that treat it with respect," said Pam Snively, Chief Data & Trust Officer, TELUS. "Consumers have more power than they might realize. The companies that prioritize privacy will earn and keep customer trust - and their business."

Confidence gap

Despite the focus on trust, confidence in corporate behaviour remains low. Only 39 per cent of Canadians say they believe Canadian organisations respect data privacy. Just 19 per cent say they believe American organisations do so.

American respondents express similar doubts. The study finds that 37 per cent believe US organisations respect data privacy, while 31 per cent say the same about Canadian organisations.

The figures highlight a trust deficit that could affect both cross-border and domestic retail activity. The data suggests many consumers will enter the holiday period wary about how brands handle email addresses, phone numbers and other personal details requested at checkout and online.

The survey points to a strong desire for plain-language information. TELUS reports that 85 per cent of Canadians and 86 per cent of Americans want privacy policies presented in a user-friendly way. Respondents say they want clear explanations of how companies use their data.

Transparency also ranks highly. The research finds that 90 per cent of Canadians and 91 per cent of Americans want companies to explain how they use personal information. The findings indicate that many shoppers now look for explicit statements before agreeing to share data in exchange for receipts, loyalty points, or discounts.

Ethics and AI

The research links trust to internal governance. TELUS reports that 86 per cent of Canadians and 87 per cent of Americans say they are more willing to trust a company if it has data ethics experts on staff.

Responsible use of artificial intelligence also influences perceptions. The survey finds that 85 per cent of Canadians and 86 per cent of Americans want companies to make commitments on responsible AI use. The issue gains prominence as retailers and service providers increase their use of AI for recommendations, pricing and customer support.

Training is another factor. According to the study, 60 per cent of Canadians and 65 per cent of Americans say they trust companies that provide data literacy training for employees more than those that do not. The data suggests that staff awareness of privacy and security practices now forms part of consumers' assessment of a brand.

"When consumers trust a company, they're more willing to share information that improves their experience - whether that's personalized recommendations, faster service, or products tailored to their needs," said Snively. "But that trust has to be earned. And this holiday season, consumers get to decide who earns it."