When shopping on your favorite websites, do you take the time to read privacy policies? If your answer is no, then you’re not alone. Most consumers (64%) don’t read them either.

In an effort to understand how consumers feel about cookies, privacy policies and personalized shopping experiences, we surveyed 1,000 U.S.-based adult consumers and the results are telling. One of the biggest takeaways? While generally, consumers find personalized experiences to be helpful, many sometimes find a retailer’s recommendations a bit creepy.

Let’s dig into more of the top takeaways from the survey below.

Personalization - creepy or helpful? 58% of respondents have found a retailer’s personalized recommendations to be creepy

However, even though some do think these personalized recommendations can be creepy - they’re not shying away from the data-driven world of online shopping. In the past year, the majority of consumers (60%) have bought an item that they specifically searched for on a retailer’s website - 37% have bought an item that was recommended to them based on their previous browsing and purchasing activity.

Retail Cookie Consumption: Only 22% of consumers always click “accept cookies” while understanding what it means

On the other end, 21% of consumers always accept cookies - without understanding what it means. This shows that there’s a large educational gap, and shoppers are likely just clicking the “accept” button to continue their shopping journey.

But - how do consumers really feel about cookies? 37% say they don't mind websites asking for cookie consent as long as it's clear. While this number seems more promising for Gen Z at 49%, there's still only 10% who say they feel positive about it because they like the transparency. That number also differs greatly across generations, with only 4% of baby boomers feeling positive about cookie consent.

However, the majority (53%) feel annoyed when asked for cookie consent - with 30% saying they’re tired of popups and 23% not wanting websites to use their data.

Transparency Trumps Creepy: 58% of consumers would be willing to share their data and browsing activity with a retailer for the right reason

Now, what reason is that? If they know that the information will be leveraged to create an enhanced and more personalized shopping experience. Furthermore, while 19% of respondents say they would never share their data with a website, there’s an opportunity to turn that number around and help consumers feel more comfortable sharing their data. To make consumers more willing to share data with a retail website, they want:

• Complete transparency on how their data will be used (54%)
• Information on the website’s data security and privacy practices (35%)
• Access to a loyalty program and its perks (29%)
• Free samples or trials (27%)
• One-off discounts or offers (24%)
• More personalized/relevant recommendations (20%)

Additionally, 60% of shoppers would use a “thumbs up/thumbs down” feature on a retailer’s website, aiding in future recommendations - but only 6% say their favorite retailers already use this feature.

The Generational Difference - younger generations are twice as likely as Baby Boomers to opt for social commerce

We analyzed the results across generations, and Baby Boomers are most hesitant to trust retailers with their private information. When asked what information they'd be willing to share with a retail website for a more personalized shopping experience, the most common answer among Baby Boomers was "I am not willing to share any information" at 39%—compared to 21% of Gen X, 14% of Millennials and 12% of Gen Z.

When it’s time to make the purchase, Baby Boomers don’t seem too fond of social commerce. While 37% of Gen Z, 39% of Millennials and 30% of Gen X say they have bought something based on a social media ad, only 16% of Baby Boomers say this. Generational differences vary even more when it comes to social media trends. Just 1% of Baby Boomers say they bought an item in the last year based on a social media trend, while other generations tell a different story:

• Gen X: 11%
• Millennials: 19%
• Gen Z: 21%

The Future of Personalization for Retail

Even given the hesitation to share the needed data for personalized shopping experiences - most consumers (59%) think that retailers can do more to create personalized experiences for shoppers. The big question is - how can retailers make this happen? According to the survey, consumers would be willing to share the following information with a retail website for a more personalized experience:

• Their shopping preferences based on what they pick and choose on that website (49%)
• Purchase history on that website (33%)
• Browsing history on that website (31%)
• Direct feedback and reviews (22%)

Only a small amount of consumers (23%) aren’t willing to share any information with retailers for a more personalized experience - showing extreme potential for the future of tailored shopping experiences.

Need a solution that balances personalized and transparent?

With tools like Algolia's AI Personalization, retailers can place their consumers at the forefront, empowering them with control over their personalized journey. This allows consumers to choose what preferences they want to disclose, ensuring their search and shopping experience aligns with their needs - all while protecting their privacy. They’ll also be able to share feedback in real time on the relevance of their search outcomes, enabling the constant refinement and enhancement of the tool.