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Data privacy is top priority for loyalty members, 52% consumers anxious over breaches and hacks

Technology & Data

Data privacy is top priority for loyalty members, 52% consumers anxious over breaches and hacks


The seventh annual ‘For Love or Money’ study reveals that concern for data security is top of mind for loyalty program members in 2019.

Conducted by by The Point of Loyalty, this year’s investigation into Australia’s loyalty programs took a particular focus on consumers’ concerns for how their data is being used and protected.

Sixty-four percent of participants are concerned about ‘knowing how secure the data is’ when providing personal information to programs, making this the top concern. ‘Knowing how my data is used’ (48%) and ‘the reputation of the company asking for my details’ (37%) are two other top concerns.

“With numerous data breaches being reported worldwide and some on loyalty programs such as Dunkin Donuts’ DD Perks and Marriott’s program, loyalty programs are at a pivotal point with member data protection, collection and use,” comments report author and Point of Loyalty CEO Adam Posner.

In addition, the report found this year that 52% of loyalty members are concerned about programs being hacked or subject to fraud. “To maintain members’ trust and ongoing engagement with their loyalty programs,” Posner continues, “brands with programs should prioritise a proactive and transparent approach to clearly highlight to their members how their data is being protected and used.”

According to the report, Millennials are even more motivated to make the most of their memberships, with 68% indicating they take advantage of the rewards and benefits available.

Last year’s report took a special focus on how cryptocurrencies are entering the loyalty space, finding that more than half (55%) were interested in blockchain technology replacing conventional rewards systems. Read our full coverage »

“While members have voiced their view on data use and protection, they are still highly engaged with programs that provide them achievable and desirable rewards and a seamless experience,” says Posner.

As far as rankings are concerned, Coles’ flybuys, Woolworths Rewards, Qantas Frequent Flyer and Virgin Velocity maintained their top spots. This year, Priceline’s Sisterclub and MyDanMurphy’s tied for equal fifth place. New entrants into the top nine this year included Event Cinema’s Cinebuzz Rewards, beating Boost’s Vibe Club at seventh place, and Mecca’s Beauty Loop, just squeezing into the ninth spot.

Loyalty rankings 2019

For Love or Money 2019 – The Point of Loyalty


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Image credit:Dayne Topkin

Josh Loh

Josh Loh is assistant editor at MarketingMag.com.au

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