Getting your Loyalty Programme Ready for GDPR

On the 25^th May 2018, when the new GDPR regulation starts, the way brands and business across Europe connect, talk and engage with their customers will change forever. Customer loyalty programmes will be affected more than most, as data and permissions are so central to the industry.

By Charlie Hills

What is GDPR?

• GDPR is General Data Protection Regulation, a legal framework that sets guidelines for the collection and processing of personal information of individuals within the European Union.
• The UK will still be subject to GDPR, despite Brexit.

5 GDPR rules that will affect customer loyalty and engagement programmes:

1. Definition of Personal Data: An individual can be identified by an online identifier, or through geo location, so information such as this is deemed as personal data, even if you don’t know the individual’s information such as name, email, phone number.
2. Permissions: If your customers are already opted in to receive marketing communications from you, the way you asked matters. If you didn’t ask in a GDPR compliant way, you will have to ask again.
3. Partners: If you work with other businesses and brands to data match, you have to request consent from those customers too.
4. Communication: You must be clear about consent and communicate to your customers how you are going to use that data. This has to be clear and simple, e.g. not hidden in T&C’s.
5. Withdrawal: Your customers will have a right to withdraw their information from your database. You will have 1 month to comply with this request. You will need to offer the same method to withdraw that you use to gain consent.

3 big implications for loyalty, partnerships and rewards programmes:

1. You need to audit your database and check your consents. Keeping good databases, at scale, is key to partnerships success; they are your gateway to creating mutual partnerships with the biggest and best brands. Without scale your appeal to partners can diminish.
2. The best way to engage customers for new or refreshed consents is with a reward. If you are asking them to do something, then give something in return. It’s just good manners.
3. When you partner with other brands, you will need to check their consents too. Ensuring you have a clear strategy that has devised the right, compelling reward for customers will increase your likelihood to acquire and gain consent from your new customers.

Charlie Hills is Managing Director and Head of Strategy at Mando Connect.