To win back customers, big brands must act like the 'shop around the corner'

The modern retail experience is a study in contradiction. Consumers are wary of how their personal data is collected and used, recoiling from being digitally stalked by an ad for a product they merely glanced at. Yet, in the same breath, they demand the seamless, hyper-personalized service that is impossible to deliver without that very same data. It's not a technical problem to be solved with a better algorithm; it's a fundamental breakdown in the brand-customer relationship.

This growing trust deficit has retailers scrambling for a solution, but the answer may lie in a surprisingly analog philosophy. We spoke with Rebecca J. Becker, Vice President of Retail Experience Solutions at Press Ganey Forsta, a company whose expertise in experience management was forged in the high-stakes, high-trust world of healthcare. For Becker, rebuilding consumer confidence isn't about more complex technology, but about using data to replicate a feeling every customer instinctively understands.

The mom-and-pop promise: "Think of the mom and pop shop that you have in your community," Becker said. "If you frequently shop there, they know you. They know what you like, they can give you those special promotions or deals or even just say, 'Hey, we're going to give you an extra dessert. We know you love this one so much.' You can do that with bigger retailers too."

At the heart of the issue is what Press Ganey Forsta calls the Experience Exchange. While recent research shows that only 19% of consumers trust retailers with their data, a massive 69% are still open to sharing it, but only if the value proposition is clear. The consumer mindset, Becker explained, is a simple transaction: "If I share my data with you, what will I get in return for that data?" She calls this "data as currency," where customers are willing to make a trade, but expect a tangible benefit. A successful exchange feels less like a transaction and more like a partnership.

The AI mandate: Looking ahead, AI is poised to deliver this personalization at an unprecedented scale, making it a competitive necessity. "If you aren't using AI, you will probably lose business or go out of business," Becker stated plainly. Yet the core rule of the Experience Exchange still applies: transparency is non-negotiable. According to an upcoming "Trust in CX" report from Press Ganey Forsta, 38% of U.S. consumers say a retailer's hidden use of AI would erode their trust.

"When retailers do that in a really collaborative way with their customers, it's mutually beneficial," she noted. "They understand my shopping habits and can offer up a subscription, like 'Hey, Rebecca, I noticed you buy this often. Would you like us to set up something for you and we'll give you a discount?'" The stakes for getting this wrong are high; the research shows that while 30% of consumers would switch retailers for a better experience, 19% have already done so.

Rebuilding trust: The low level of trust is hardly surprising, Becker acknowledged, given the history of "cyber breaches that have happened in retail." When these events occur, the formula for crisis communication is simple: be "clear, swift, and transparent." But the long-term solution to rebuilding that broken trust is to proactively double down on providing value. That value, it turns out, is a key driver of trust itself.

A generational divide: Of course, not all customers view this exchange the same way. The research reveals a stark generational divide, with Baby Boomers remaining the most skeptical. To win them over, retailers can't rely on implied benefits; they must be explicit "and be really transparent about the benefit." Younger consumers, however, operate with a different set of assumptions. "Gen Z is a lot more willing to share data. They're used to it," Becker explained. "Their whole world has started on digital and they just understand the benefits. They understand an algorithm. They understand when there's that data sharing, they're going to get a better experience."

Ultimately, consumers are open to AI-powered experiences "as long as it is helpful and efficient," but Becker is clear that technology is only a tool to achieve a human goal. No matter how intelligent the system, there is a firm boundary that technology cannot cross. "I don't think AI can replace humans when it comes to complex scenarios or issues that are in the realm of security and trust."