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Friday 24.11.2017 | Name days: Velta, Velda
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Loyalty card holders risk the safety of their personal information

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An average Latvian family owns ten to fifteen loyalty cards for different companies. Some of them received for free, others – as a form of a bonus for making a large purchase, some were even bought.

According to the Marketing Manager of TNS Latvia Laura Vindele, it is likely the most popular loyalty cards are those of grocery stores. Traders and service providers use client loyalty cards to develop special offers for buyers in regard to their usual buying habits. However, with the growing popularity of these cards, so grows the concern in regard to data security and ethics.

One of the last scandals took place in USA. The Target network of supermarkets was so careful in its analysis of client data that they started giving special offers to pregnant women. Some of the women received such offers even before they had a chance of telling their relatives about the fact of pregnancy.

Any Latvian trader that wants to compile data on his clients must do so in accordance with requirements of the personal data protection law, says DPA Safety auditor Didzis Balodis. Seeing as though loyalty cards are widely spread, there is a risk of data leak. Furthermore, the more cards a person has, the higher the risk of data leak.

According to the recently carried out research, attracting a new client is five to ten times more expensive than selling something to a present client. On top of that, a regular client spends 67% more money than new clients, Inc.com writes.

Given this simple fact, 65% of marketing specialists prefer to develop loyalty programs that bring profit and allow the traders to evaluate the preferences of the target audience without additional expenses.

Ref: 104.109.109.4891


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  1. just me says:

    Finally this comes up in Latvia too. Consumers definitely deserve more information on this issue.
    This is a great topic for practicing proper investigative journalism and digging deeper.

    Thumb up 0 Thumb down 0

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