Navigating Privacy Across Regions: A Study on Phone Number Requirements in Rewards Programs
Background
Role: Lead UX Researcher
Timeframe: 2 months
Team: Product Manager, Designer, Developers
Overview:
A major retailer sought to implement two-factor authentication (2FA) as a fraud prevention measure, allowing users to receive a one-time passcode (OTP) via email or text. However, phone numbers were not previously required in the EMEA region, and the company was unsure whether introducing this requirement would introduce too much friction in the sign-up process. The business aimed to understand whether there were cultural or privacy-related reasons for not collecting phone numbers in EMEA and how requiring this information might impact sign-up rates.
Research Objective:
To determine whether requiring a phone number would deter customers in North America and EMEA from signing up for a retailer rewards program. The study also sought to identify key privacy concerns, motivations, and cultural differences between these regions.
Research Questions:
How does the requirement of a phone number affect customers’ willingness to sign up for a retailer rewards program?
What are the specific concerns or motivations that drive each region's users to complete or abandon sign-up?
Are there notable cultural or privacy-related preferences in each region regarding sharing personal information, particularly phone numbers?
Do North American vs. EMEA participants have different expectations or comfort levels with sharing phone numbers?
Effective Stakeholder Communication & Research Process
1. Research Request & Alignment
The research process begins when I receive a request from a stakeholder, often a Product Manager (PM), Designer, or other key collaborator. Instead of immediately drafting a test plan, I first set up a meeting with the PM to align on the core business problem driving the request. This discussion helps uncover the "why" behind the research, ensuring that we are solving a real user problem rather than just validating an assumption. By digging deeper, I often refine the request to better address the user’s needs while also aligning with business objectives.
Key questions I ask during this phase:
What assumptions exist about the problem?
Who are the users in this project?
How does this project align with company/business goals?
What research / knowledge do you already possess on this topic?
What are the success metrics or key outcomes?
Are there any known constraints or business considerations?
This collaborative discussion allows me to move forward with clarity, ensuring that the research effort is both impactful and aligned with business goals.
2. Determining Methodology & Developing the Test Plan
Once the research objectives are clear, I draft a test plan that outlines the methodology, participant criteria, and research script. I meet with relevant stakeholders—including PMs, Designers, and sometimes Engineers—to review the test plan and determine whether the chosen approach is the best fit for the problem.
In this stage, I consider:
Methodology selection: Does this require qualitative insights (e.g., moderated usability tests, interviews) or quantitative validation (e.g., surveys, A/B testing)?
Script refinement: Are the questions structured to avoid bias and extract meaningful insights?
Participant criteria: Are we targeting the right users for the study?
By involving stakeholders early in the test plan review, I ensure buy-in from the team, reducing the risk of misalignment later on. This collaborative approach also helps teams feel more invested in the research process.
3. Research Execution & Delivering Actionable Insights
Once the study is completed, I synthesize the findings into clear, actionable insights. Rather than delivering a one-size-fits-all report, I tailor my deliverables based on stakeholder needs.
I provide insights in one of the following formats:
Detailed reports for teams that prefer in-depth documentation.
Concise decks with high-level takeaways for leadership or fast-moving teams.
Live walkthroughs or workshops to engage teams and facilitate discussion.
In my final share-out, I go beyond just presenting findings—I tie insights back to business goals, offering clear recommendations that help drive decision-making. Additionally, I ensure that leadership is aligned by summarizing key insights in executive-friendly formats, highlighting critical impact areas.
By structuring my research process in this way, I ensure that my work not only provides valuable user insights but also directly informs strategic business decisions.
Study Design & Execution
Methods & Tools
Approach: Unmoderated survey via UserZoom
Why a Survey?
1. The Need for Quantitative Insights
A survey was the best method because the goal was to understand patterns and trends across a large user base. Unlike qualitative methods (such as interviews or usability tests), which offer deep but limited insights, surveys allow for statistically significant data collection to identify overarching behavioral trends.
2. Efficiently Capturing Diverse Perspectives
The loyalty program spanned multiple regions, each with unique cultural and privacy considerations. A survey allowed the research team to collect responses from a diverse audience—including both existing and potential loyalty program members—without requiring extensive recruitment or time-consuming one-on-one sessions.
3. Addressing Specific Research Questions
The survey was designed to answer key questions, such as:
What motivates users to join (or avoid) the loyalty program?
How do users perceive data privacy concerns, and do they vary by region?
What benefits would make users more likely to sign up?
By structuring the survey around these focused questions, I ensured the research was actionable for stakeholders.
The survey was distributed via a research testing platform targeting both current and potential loyalty program users. It included:
Closed-ended questions for quantitative analysis (e.g., multiple-choice, Likert scale)
Open-ended questions to capture user sentiment and emerging themes
Conditional logic to tailor the experience based on previous answers, ensuring relevance
Sample Size: 200 participants (100 from North America, 100 from EMEA) fielded over 2 weeks.
Target Demographics:
Current and/or potential shoppers within the retailer’s competitive set
80% Female / 20% Male
Ages 25-40
Household Income ≥ $50K (North America) / ≥ €30K (EMEA)
Shops for clothing online at least seasonally
Script Example
To create an effective survey, I always follow key best practices, including:
Avoid bias and leading questions:
I avoid confirmation bias by ensuring I don’t ask questions that will confirm the hypotheses.
I avoid the framing effect by not asking questions that prompt specific answers from the user (leading questions).
I avoid an unbalanced scale.
Ask the right questions
I focus the questions on the problem I am trying to solve or the hypotheses I am trying to understand. If the survey is used for problem discovery, then I ask questions that help identify pain points and challenges to discover the blockers the users are experiencing.
For quick numerical data, I use quantitative questions.
For feedback, I ask qualitative questions.
Sample Script
Key Findings
1. Rewards Program Engagement
Membership was slightly higher in the US (91%) compared to EMEA (80%).
Around 50% of customers in both regions frequently participate in rewards programs, showing similar engagement levels.
2. Willingness to Provide a Phone Number
US customers were more likely (53%) to provide a phone number during sign-up than EMEA customers (28%).
Trust in a retailer’s privacy policy and perceived benefits were the most influential factors in deciding to share a phone number.
3. Privacy Concerns and Marketing Preferences
Privacy concerns about phone numbers were significantly higher in EMEA (83%) than in the US (63%).
74% of EMEA customers preferred that their phone numbers were not used for marketing, compared to 54% in the US.
4. Comfort Levels
60% of US customers were comfortable providing their phone numbers, compared to only 50% in EMEA.
20% of EMEA participants were uncomfortable, while only 5% of US participants shared this sentiment.
5. Barriers to Sharing Phone Numbers
The primary deterrents were concerns about spam, unsolicited messages, and data privacy.
EMEA customers were particularly cautious about retailers requesting phone numbers compared to US customers.
6. Incentives That Encourage Sharing
Assurance against third-party data sharing, clear usage explanations, extra incentives (e.g., discounts, points), and greater control over personal data were key motivators across both regions.
Recommendations
1. Prioritize Transparency
Clearly explain why the phone number is needed and how it will be used.
Highlight security measures and privacy policies in a concise, easy-to-digest manner.
Use bold statements to assure customers that their data will not be shared with third parties.
2. Minimize Communication Burden
Avoid excessive promotional messages via text.
Offer customers clear opt-in and opt-out options for SMS communications.
3. Enhance Data Control
Allow customers to customize how their data is used (e.g., message frequency, preferred communication channels).
Promote options that enable users to opt out of marketing messages while still benefiting from security features like 2FA.
4. Build Trust
Emphasize data security practices and avoid selling or sharing customer information with third parties.
Provide accessible FAQs or visual explanations to address privacy-related concerns.
5. Leverage Benefits to Encourage Participation
Make the advantages of providing a phone number more explicit and appealing.
Offer additional benefits such as exclusive discounts, bonus points, or faster reward accumulation for customers who opt in.
6. Adapt Communications for Regional Differences
Tailor messaging based on regional privacy sensitivities, emphasizing security in EMEA and convenience in the US.
In EMEA, highlight strict adherence to data protection laws and reinforce control over personal information.
In the US, focus on convenience factors such as faster checkout and personalized offers.
These findings directly influenced the retailer’s strategy, leading to:
A clearer privacy policy and more visible opt-out options.
Region-specific loyalty program benefits.
A shift in communication strategies, reducing SMS reliance.
Impact & Reflections
This research provided clear insights into how cultural attitudes toward data privacy impact customer behaviors. By addressing regional concerns and offering transparency, control, and incentives, the retailer can implement 2FA without significantly impacting sign-up rates. Additionally, understanding and respecting customers' privacy expectations enhances brand trust, leading to higher engagement and long-term loyalty.
Choosing a survey as the research method provided the necessary scale, efficiency, and statistical validity to guide decision-making. While it lacked the depth of qualitative methods, the findings identified clear user behaviors and expectations, which were later supplemented with targeted interviews for deeper exploration.
This study underscores the importance of conducting UX research before implementing changes that impact user experience. It highlights how research-driven insights lead to strategic, user-centered decisions that balance security needs with customer trust and convenience.