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THE DESIRE FOR DATA
Loyalty programmes require customer data if they are to be effective. But it must be collected legally and with client privacy in mind, writes RODNEY WEIDEMANN
To best determine matters of customer loyalty or to ensure the right people are rewarded in the right way, having access to relevant customer data is the most important tool in any loyalty programme’s arsenal. The question is: how can loyalty programmes best gather useful data in a way that is both legal and effi cient?
Avsharn Bachoo, CIO at Comair, says that data is necessary to better understand and meet consumers’ needs. It also enables loyalty programmes to create personalised consumer experiences. “The information used encompasses personal data, such as names and email addresses; engagement data, relating to their interactions with our website, apps and social media pages; behavioural data, such as purchase histories and product usage; and attitudinal data, which relates to metrics on consumer satisfaction.”
Comair uses this data to build segmented consumer profi les for personalisation, cross-sell, up-sell, next best offer, future sales or marketing efforts, Bachoo explains. “It helps us understand market trends and shifting consumer behaviour. It is also useful for discovering what consumers want now, and what they will want in the future, through predictive analytics.”
Clicks managing executive Vikash Singh indicates that gathering such data remains vitally important as it enables Clicks to connect with customers by providing benefi ts and rewarding points, and through personalised special offers and promotions. “Of course, compliance with the legal protection of customers’ privacy and personal data is extremely important to Clicks. Therefore, we implement a variety of security measures that accord best practice. These are constantly reviewed and updated.” With the data covering such a wide range of health markers, programmes can be tailored for individuals, suggests Rimmer. “So it could be used to incentivise healthy people to stay healthy or to improve those whose health is below average, through programmes targeted to their specifi c needs. The data forms a crucial pillar of incentivisation as it measures improvement in wellbeing and rewards the user with additional life cover on the basis of this.”
For Comair, the most valuable is behavioural data, including details such as purchase histories and product usage. “This allows us to create personalised offers for individuals based on specifi c behavioural history,” says Bachoo. “For instance, for an airline fl ight sale, personalised offers can be sent to specifi c individuals based on us already knowing their preferred destination, the time of the day they enjoy fl ying and their budget – based on their past spend. This also provides opportunities to cross-sell or upsell ancillary products such as car hire or insurance.”
HEALTHY DATA
Anton Keet, head of risk services at 1Life, notes that Pulse is a health management programme focused on rewards, rather than loyalty, but adds that the success of any programme depends Avsharn Bachoo on the usefulness and accuracy of the data.
“With 1Life Pulse, our aim is to help members improve their health by making them aware of critical health markers and incentivising them with increased life cover as they use the programme and improve their health. To best achieve accuracy, it is crucial to use technology that has proven its scientifi c accuracy, and to partner with an experienced and reputable provider – as we have with LifeQ.”
LifeQ COO Christopher
Rimmer says that by leveraging an in-depth knowledge and understanding of human physiology and systems biology, their team of scientists and technologists developed four health scores directly related to long-term mortality risk: heart, sleep, fi tness and lifestyle/activity. “Customers are expected to wear a supplied smart device 20 days out of every month. This is tracked in the easy-to-use mobile app. Every time they get a little extra sleep or go for a walk, for example, they are growing their life cover as they grow their wellbeing.”
ON THE BASIS OF THIS.” – CHRISTOPHER RIMMER, LIFEQ
TOP-PERFORMING DATA ANALYTICS SOFTWARE FOR REWARDS SCHEMES
If your business is seeking to implement a loyalty or reward scheme, you could do worse than consider one of these solutions, reputed to be the top software in Africa.
• Infl uitive • Talon.One • Tremendous • White Label Loyalty • Zinrelo • Loyverse POS • Fivestars • Tango Card • Tribe • SmartMatchApp Source: SourceForge.net
Anton Keet
In light of rising consumer expectations for privacy and alongside rapidly evolving regulatory restrictions, Google Chrome has announced its intent to remove support for third-party cookies by 2023.
Worth noting is the key difference between third-party and fi rst-party cookies. The latter occur when a consumer visits a website for the fi rst time and their data, such as preferences and selections, is saved to improve their experience the next time they visit the same website. Third-party cookies push these saved preferences and selections to other websites to which the consumer may not have agreed.
The real trouble with cookies is that they often collect a wide range of information, including everything from your age and gender to your behavioural preferences, notes Mark Walker, associate vice president for sub-Saharan Africa at the International Data Corporation. “All of this cookie feedback is then aggregated, parsed using artifi cial intelligence and used to plan sophisticated marketing initiatives, which, based on the strong profi les created, can be directed accordingly. While this can make the buying experience more positive, the concern when it comes to third parties is privacy – an increasingly big issue in the digital world.”
Walker says all the worry is around what data these cookies collect, about whom, and with whom data is then shared. “For example, a retailer will leverage the information it collects differently to a political entity. Having a store know specifi cs about you to enable better purchases is a very different thing to having the government know those same details.”
THE LOYALTY ANGLE
When it comes to loyalty programmes, the principle with cookies is that if the consumer allows the organisation to track them, they are rewarded accordingly, says Yaron Assabi, CEO of Digital Mall. Of course, people don’t mind opting in if it offers them value, but if this is overdone or data is sold without consent, the consumer is likely to opt out. “Recent legislation is designed in part to protect this ability to opt in and out, but because third-party cookies may spread your information further than the original site, organisations like Google are trying to bring in additional control and further empower the consumer.”
The digital ecosystem will have to continue to evolve, both to stay in line with laws like the Protection of Personal Information Act and the General Data Protection Rule and to keep consumers happy. “In my opinion, Google’s move is a very good thing for consumers as it makes compliance easier and protects customer data more thoroughly,” says Assabi.
He adds that what must be understood is that third-party cookies or not, loyalty programmes are a good way for companies to obtain relevant customer information that can enable more personalised marketing. “This approach essentially becomes a self-fulfi lling cycle in that companies reward clients with extra benefi ts if they provide more
FAST FACT
Google has launched a Privacy Sandbox, a secure environment for personalisation that also protects user privacy.
This is designed to eliminate the pervasive cross-site tracking enabled by third-party cookies, replacing this with anonymously aggregated user information, creating a thriving web ecosystem respectful of users and privacy by default. Source: Chromium.org
WHY PROTECTING CUSTOMER PRIVACY IS KEY
Google is set to follow in the footsteps of other browsers like Safari and Firefox and ban third-party cookies by 2023. RODNEY WEIDEMANN looks at the implications for loyalty schemes
Yaron Assabi
data. Customers who get better deals will then be happier providing additional information, which allows the company to deliver even better benefi ts.
“However, this always needs to be done in a way that doesn’t infringe upon their privacy and demonstrates respect for customer information – I suspect this is the key reason behind Google’s move,” Assabi concludes.
