Loyalty programs capture and use personal and purchase data when customers join and engage with programs on an ongoing basis.
In exchange for their data, loyalty programs provide members various benefits, rewards and experiences.
For the first time in the ongoing series of For Love or Money™ research studies, the Data Value Benefit Exchange: DVBx was created to understand the trade-off members are willing to make when exchanging their personal and purchase data with loyalty programs.
Which of the five benefits do members want from loyalty programs in exchange for their personal and purchase data?
Recognition: “Programs recognising me as a valued member” (making me feel special with status and exclusive experiences)
Relevance: “Programs that are personalised and relevant to me” (using my data to provide relevant and personalised offers and rewards)
Money: “Programs saving me money” (cashback, savings and discounts)
Time: “Programs saving me time and making my life easier” (digital receipts, tap and pay, member service hotline)
Joy: “Programs making my life more joyful” (providing surprise offers and moments of delight)
95% of members expect any one or all the five benefits in exchange for their purchase and personal data.
The strongest benefit available to loyalty programs in any data value benefit exchange with members is the prospect of saving them money.
Have a happy loyalty day!
