Customer Perceptions of In-Store Identification

Abstract

Customer identification is essential for all businesses; however, brick-and-mortar (B&M) retailers often face challenges capturing shopping behaviors in physical stores where customers are not accustomed to being identified, especially outside checkout. Nevertheless, B&M retailers are increasingly pressured to improve their identification and data collection methods to stay competitive with online retailers. Additionally, businesses are under pressure to incorporate digital elements into physical environments to keep them engaging and inspiring for the increasingly digitized customers. Hence, this study describes customer perceptions of in-store identification, focusing on B&M store entry and checkout-related identification. The data were collected from interviews with 18 customers of two Finnish B&M retailers. The findings show that while generally viewed positively, there is some reluctance towards identification initiatives. Customers cautiously accept entrance- and in-store identification, yet there are challenges in grasping the associated benefits. Additionally, concerns about privacy infringement and the extent of tracking were identified. While commonplace, checkout identification raises privacy concerns, highlighting the importance of nimble and discreet processes and preserving anonymity.