Retailers Invest Amid Privacy Act
Retailers like Woolworths and Coles continue to enhance loyalty programs, using customer data to inform business strategies despite recent Privacy Act review concerns.
October 12, 2023
Despite the uncertainty created by the recent Privacy Act review, retailers are investing heavily in customer loyalty programs. The customer data collected is now driving decisions on marketing, range, pricing, merchandising, and store locations. For the likes of Woolworths Group, Coles Group, and David Jones, the data has created new revenue streams in their retail media businesses.
The recent Privacy Act review threatened the viability of loyalty programs with a proposal to eliminate targeting using customer data—a proposal that won't be implemented. However, customers can still withdraw consent for direct marketing of loyalty offers by email or text, undermining the investment in loyalty.
