More than half of loyalty members concerned about their data

Loyalty program members are growing increasingly concerned about sharing their data with retail brands following the major breaches in Australia. 

According to the Point of Loyalty survey, For Love or Money, it noted that 55 percent of loyalty program members are concerned about sharing their data but will still willingly do so knowing they are gaining benefits and rewards from the program.

Only 22 percent of respondents are confident with the security protocols of loyalty programs and are happy to share their data, knowing they are gaining benefits and rewards from the program.

Two percent said they would not join any loyalty programs due to being “nervous” about data breaches.

While a small percentage of respondents don’t trust brands, Adam Posner, founder of Point of Loyalty told Digital Nation said trust is slowly coming back.

He said, “Because businesses have realised, they need to up the game on their data protection and security.”

Posner said these results highlight two schools of thought.

“Loyalty program members’ awareness and sensitivity to sharing their data is heightened, however, they’ll still share when there is a fair value exchange. On the other side of this, there is a level of trust in loyalty programs being more focused on data protection now,” he said.

The report highlighted the importance of loyalty within the era of inflation.

From the report, 42 percent said they would be more actively involved with their loyalty brand during tough economic times to maximise their rewards and savings.

This gives loyalty brands an opportunity to engage and support their members.

“[Loyalty members] will actively get involved with their programs to find and maximise rewards and savings. They're actively engaging, looking for ways to get more savings, especially in everyday life,” he explained.

Loyalty programs have improved in their technology and digital experience, the report found.

The research has been tracking areas programs need to improve in since 2018 with an increase (from 34 percent in 2018 to 44 percent in 2023) of members indicating programs have improved the digital experience including mobile apps and mobile payments.

Posner said this increase surprised him, “I'm in the industry and I know how much investment is going into the experience, integrating payments at your wallets and the tap-and-go experience."

He added, “Loyalty programs have continued to invest in improving the overall experience for
their members and of the many factors impacting the experience, digital engagement in areas
such as payment integration has become more seamless and almost a hygiene factor."

Digital Nation is hosting its inaugural Digital As Usual event investigating the impact of technology on marketing, finance and HR. To register, click here.