Data Breaches Breed Loyalty Program Distrust Among Consumers

With company data breaches on the rise, consumers are becoming increasingly wary of sharing personal information with the brands they love. And with good reason. According to a recent survey, 43 percent of U.S. companies, including both Target and Home Depot, have experienced a breach this year. Even the companies that haven't experienced a data breach are feeling the effects of the growing distrust — especially in the travel industry. 

Consulting firm Deloitte reports that 33 percent of frequent travelers believe their loyalty information is secure. This includes credit card information, reward account data and travel itinerary. What's more, 76 percent of travelers surveyed believe that their credit card information will be lost because of an online security breach. 

“Airlines know how important customer information is, and they have transparent privacy policies and are vigilant in protecting customer data,” Jean Medina, a spokeswoman for Airlines for America, a trade group for the industry told The LA Times. 

The expectation of consumers to have protected data is very high, meaning data security should be a top priority for companies. For some respondents, it's not just a matter of potentially losing money; the data they share with companies could compromise their livelihood if released to the wrong hands.

"My biggest concern is that if there was a breach that they would know where I live and have all my info," on survey respondent said. "Money can be replaced, but my daughter cannot."

While it may seem drastic, the reality of lost personal information can cost the consumer a lot more than money. Trust between a brand and its loyal customer base is important in an era where transparency is valued and a consumer can make or break a brand's future with a simple tweet or Facebook post. Protecting and backing up data properly is tantamount to a company's continued success.

Image via Canstock Photo