Loyalty Members Value Privacy, Personalization

While loyalty cardholders seek a personalized experience, they are concerned about sharing too much personal information, according to Mintel.

October 29, 2013

CHICAGO – Mintel revealed earlier this week that consumers weigh privacy concerns when considering whether to join a loyalty program, Supermarket News reports.

While cardholders seek personalization, nearly one-third (32%) said privacy is an important attribute of any loyalty program.

Accordingly, 13% of cardholders expressed frustration with an enrollment process that solicited too much personal information, while 10% said they disliked a lack of control of the privacy of their information.

“Reassurance of privacy is undoubtedly a key strategic tool in loyalty program engagement, but there is a paradox at play here between personalization and privacy,” said Ika Erwina, retail and technology analyst at Mintel, in a statement. “Ironically, even though loyalty program members crave a more personalized, relevant experience, they also show concern about sharing the information required to enable the retailer to deliver on this desire.”

Other elements that are important to consumers when choosing a loyalty program include:
• Ease of redeeming rewards (55%)
• Ease of earning points (51%)
• Ease of earning monetary rewards (51%)
• Access to exclusive deals (36%)
• Easy enrollment options (22%)  

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