Retail Technology Innovation Hub Mentions First Insight | Black Friday Extravaganza Belongs to Entrepreneurs: Bringing You the Retail Technology Week In Numbers
48% of US consumers have never heard of a digital twin before, according to First Insight research involving 1,303 people.
Once learning that this is a digital replica of customers built from past purchases, browsing behaviour and inferred preferences, 69% say they would trust a brand less if it relied on digital twins instead of real customer feedback.
Many retailers are using digital twins as a faster, more scalable way to deliver personalised experiences to their customers. But, using these virtual representations of customers to guide decisions and make predictions around everything from products and pricing to inventory and marketing - without ever involving the real customer - is not only largely inaccurate, but can cause brands to lose significant customer trust.
77% of consumers say they value authentic, direct communication from brands more than efficiency or automation in how they gather feedback. The study also underscores the commercial and reputational risks of replacing real customer input with simulated feedback. 69% describe themselves as “extremely” or “very” protective of their personal data.
Once shoppers learn that brands may model or monetise them without their consent, 58% say they would become detractors, either less likely to recommend a brand or actively warn others against purchasing from it.
Plus, while Gen Z shoppers may not drive the majority of revenue today, they’re the most likely to take action to voice their frustration: 56% say they would contact the brands directly, while 54% would share articles exposing the practice, and 53% would post about it on social media.
Read the full article on Retail Technology Innovation Hub.
