The Data Exchange: Building Trust and Value in Customer Loyalty Programs

In today’s digital economy, customer loyalty is no longer defined by points, discounts, or transactional perks alone. Instead, it is shaped by a dynamic, trust-based relationship where data is the currency that powers personalized experiences, deeper engagement, and sustainable business growth. As organizations seek to unlock the full potential of loyalty programs, understanding the evolving data exchange between brands and consumers is critical.

The New Loyalty Paradigm: Data as the Foundation

Globally, more than half of consumers (51%) participate in loyalty programs, yet they actively engage with only about three out of the six programs they join. This gap signals a need for brands to move beyond table-stakes rewards and focus on delivering value that resonates on a personal level. At the heart of this evolution is data—specifically, how it is collected, used, and protected.

Consumers increasingly recognize the value of their data and are willing to share it, but only when the exchange is clear, transparent, and beneficial. Recent research shows that 69% of consumers are likely to share their data for better offers, 56% for more relevant recommendations, and 53% for exclusive experiences. However, this willingness is tempered by significant concerns about privacy and control.

What Motivates Consumers to Share Data?

Consumers are selective about sharing their data. While 20% are open to sharing with any business, 36% are selective, and 44% are not willing to share with any company. The key to unlocking greater participation lies in addressing the factors that build trust:

Consumers are most willing to share data when the benefits are tangible and relevant. The top motivators include exclusive content, experiences, or rewards (31%), discounts or special offers (27%), more relevant recommendations (19%), and personalized services (10%). Attitudinal, behavioral, and usage data are more acceptable to share than personal data, and retailers are the most trusted recipients.

The Importance of Transparency and Control

Trust is the single most important factor in the data exchange. To earn and maintain it, organizations must:

Personalization: Turning Data into Loyalty

Personalization is the engine that transforms data into value. Brands that leverage first-party data to deliver tailored experiences see higher engagement, retention, and advocacy. For example, a large drugstore retailer partnered with Publicis Sapient to redesign its loyalty ecosystem, integrating customer data and centering rewards around an internal currency. This approach unlocked over $5 billion in incremental top-line growth and more than $1 billion in EBIT growth. In hospitality, unifying loyalty programs across multiple brands and using data to anticipate guest needs led to a 359% increase in bookings and a 300% improvement in email engagement. In quick-service restaurants, integrating mobile app enrollment and real-time rewards drove a fivefold increase in loyalty transactions and quadrupled revenue from subscribed customers.

Actionable Recommendations for Building Trust

To deepen customer relationships and maximize the value of loyalty programs, organizations should:

  1. Communicate the benefits: Make the value of the program clear, simple, and accessible.
  2. Be transparent and give control: Build trust by showing how data is used and empowering customers to manage their preferences.
  3. Personalize at every touchpoint: Use data to deliver relevant, timely, and meaningful experiences across digital and physical channels.
  4. Invest in data and technology: Build unified customer data platforms and analytics capabilities to enable real-time personalization and seamless omnichannel engagement.

The Road Ahead: Loyalty as a Platform for Growth

The future of loyalty is built on a foundation of trust, transparency, and value-driven data exchange. Brands that embrace this new paradigm—balancing privacy with personalization and delivering clear benefits in return for data—will earn deeper loyalty, higher retention, and sustainable growth.

At Publicis Sapient, we help organizations design and implement loyalty solutions that put data, trust, and customer value at the core. Ready to transform your loyalty strategy? Let’s start the conversation and unlock the next era of customer engagement.