Don’t Let Oversharing Undercut Your Loyalty Program
A few weeks ago, we shared what your consumers want in a loyalty program. Not only can you create value from a loyalty program, but it can help you retain your greatest asset, your current customers! In that post, we also took a look at how buyers are increasingly concerned about their privacy. We’re taking a deeper look at why consumers don’t want to overshare their personal data for a loyalty program and how you can create a program that your customers will trust.
Marketing Dive recently broke down a Harris Poll study which found that 71% of Americans said that they would be less likely to join a rewards program that collected personal data. Consumers are increasingly concerned with how companies are using their personal data and the less they share, the better. The survey explained that of consumers, 71% worry about how brands use their personal data, the main example being theft and credit card fraud. This is creating a divide between the fact that customers want a personalized experience, which requires their data, but also want to keep their information private.
Keeping your customers’ information secure is always a top priority. To create a loyalty program that your customers trust, check out these tips:
- Create a high-value story for your loyalty program. The inventory our dealers sell includes high-investment pieces that your customers take the time to research. They want to see a return on their investment, and as a dealer, that sale includes setting them up to be a return customer. Clearly showing customers the benefits they would receive from participating in a loyalty program with your business helps reduce their insecurities, while showing the ultimate benefits of becoming a return customer.
- Assure your customers that you’re keeping their information safe. We’ve all seen programs that just don’t seem right and make us think, “There’s no way I’m going to hand over my information.” A simple, “Don’t worry, we’re only using your information for x, y, and z,” can take your loyalty program to the next level. But be sure to stick to your promise and only use that data for x, y, and z.
- Don’t let personalization become the main focus. While we live in an era where you can personalize everything from your license plate to your phone case, over-personalizing simply for the sake of over-personalizing can turn away your customers. According to the study from Harris Poll, 76% of consumers stated that they would be more likely to join a program that required just their name and phone number. Take a look at different loyalty programs you participate in – how much information were you willing to share? Using your personal experiences as examples can help you understand what information is reasonable to ask from your customers as you create a good program for them.
Loyalty programs incentivize your customers to give your dealership their continued support. Create a loyalty program that helps your customers stay engaged but still respects their right to keep their information private. How are you going to implement practices to ensure your customers find value and security in your loyalty program? Share in the comments below!