Loyalty programs could feel Target data breach fallout

Discussion in 'Other Loyalty Programs' started by sobore, Jan 17, 2014.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    http://www.nbcnews.com/business/loyalty-programs-could-feel-target-data-breach-fallout-2D11919619

    Shoppers might hesitate the next time a cashier asks for their phone number or they're prompted to enter an email address to register for a promotion, following news that as many as 70 million Target customers might have had personal information stolen in a massive data breach.

    It's a serious blow to retailers, especially as they rely more on loyalty program participation to drive sales and gather data about their customer base.

    “Consumers definitely already have concerns about sharing data,” said Emily Collins, an analyst with Forrester Research. “From a consumer perspective, perception is the reality,” she said. “Consumers generally are most concerned about phishing scams and their identity being stolen.”

    Experts in loyalty marketing say other retailers are keeping a wary eye on the still-unfolding Target saga and the impact it could have on consumer perceptions of loyalty programs in general.

    “Retailers are certainly concerned,” said Joe Easley, senior director of business development and product strategy at Kobie Marketing. “Look at what happened to TJX years ago. It impacted everybody,” he said, referring to an extensive data breach involving T.J. Maxx stores in 2007.

    Target chairman and CEO Gregg Steinhafel told CNBC the company was hit with malware at its point-of-sale terminals, but that it is still investigating to see if the crooks wormed their way in elsewhere.

    Read More: http://www.nbcnews.com/business/loyalty-programs-could-feel-target-data-breach-fallout-2D11919619
     
    anileze, Gargoyle, gaijin62 and 2 others like this.
  2. Gargoyle
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    Gargoyle Milepoint Guide

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    Loyalty programs depend on an exchange. Customers give up a bit of privacy in exchange for rewards. I'm thinking companies will need to increase reward levels as consumers start seeing the increased cost and risk of giving up privacy.
     

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