Brands must be careful stewards of the information customers provide and remember that loyalty is earned, not given away freely. With stringent laws in place around user data collection and consumers demanding more transparency from companies, it’s now paramount for brands to attain user consent and be explicit about the use cases of data aggregated through loyalty schemes. Yet only 22% of brands in Gartner L2’s data and targeting report supply a proactive cookies notice above the fold or clearly disclose how they use collected customer data at signup.
One way for brands to offer more transparency is to be explicit about the mutually beneficial value of sharing data. An unclear value proposition makes customers reluctant to enroll in loyalty programs that solicit personal information. Although brands have achieved stronger account and loyalty integration, only half of brands analyzed in Gartner L2’s recent loyalty report clearly articulate the benefits of enrolling into a loyalty program during account signup.
Eddie Bauer and Urban Decay demonstrate how brands can better communicate the value of loyalty programs. Eddie Bauer not only lists several loyalty perks but creates a distinction between account and loyalty benefits at signup. Instead of broadcasting program details at signup, Urban Decay makes its loyalty FAQ easily accessible by linking to program details at every step of the way.