Loyalty360 Brand Marketer Research: Impacts of Data and Privacy Regulations on Customer Loyalty

The evolving landscape of data and privacy regulations has forced brands to reevaluate their approaches to data collection, management, and communications, all of which significantly impact customer loyalty strategies. Research shows that consumers are willing to share their data with brands in exchange for an enhanced experience. However, highly publicized data breaches and their detrimental consequences have raised concerns about how brands handle personal data.

Since the European Union’s General Data Protection Regulation (GDPR) was introduced in 2018, legislators worldwide have responded, leading to additional privacy regulations, particularly in the United States. These rapid developments in government legislation, combined with the phasing out of third-party cookies, have pressured brands to reassess their data and utilization practices for compliance while delivering meaningful value to their most loyal customers.

In mid-2023, Loyalty360 conducted a comprehensive survey among brand marketers to gain deeper insights into their understanding of diverse privacy laws and regulations, the ramifications of these legal frameworks, and the measures brands have already undertaken and plan to implement. Supported by qualitative discussions with brand marketers, Digital Roundtable sessions, and guidance from legal experts within Loyalty360 Brand Members’ legal teams, the results highlighted the growing emphasis on data and privacy, with the majority of brands increasing their focus on the topic over the past 12-18 months.

However, the findings also revealed a set of growing challenges confronting marketers, including a lack of expertise in navigating various privacy laws and the increasing hurdles brands encounter as they strive to integrate data privacy regulations into their loyalty initiatives.

Key Takeaways:

• There is a growing emphasis on data and privacy, with loyalty as a crucial avenue for brands to obtain data and understand customer behavior.
• Brand challenges are increasing due to a lack of internal knowledge and expertise, siloed brand teams, and hurdles with integrating changes into loyalty initiatives.
• Customers struggle to understand brands’ data protection policies. While terms and conditions may be available, the terminology remains challenging.