Loyalty programmes have major threats to face when it comes to being truly effective and useful. Often times, these challenges take place during the login process. These threats not only risk losing customers, but also represent increased cost. The good news is, we understand the challenge and know how to overcome it.

Loyalty cards: too many to carry

Loyalty clubs need their members to identify themselves when purchasing products/services from an affiliated company. In order to do this, the member needs to present a card/number. If the customer does not remember their number or isn’t carrying their card, then the purchase can’t be attributed to that member.

Users registered multiple times

When customers are asked for their membership information but can’t be identified, many create new accounts in order to continue enjoying the benefits of being a member.

When faced with multiple website or app sign-in options (such as signing in with Dropbox, Facebook, or Twitter), some might forget which service they used to sign up (or if they used one at all), leading to hesitation or a failed login. Worse yet, if a user selects the wrong provider, instead of signing in with the service they are attempting to use, they might end up registering again and creating a second account.

One of a loyalty club’s assets is that it collects information on member purchase history. If multiple accounts are being created for the same member, it will be impossible to analyse their purchasing habits, and the loyalty programme loses its value.

The actual cost of login issues

For this topic, let’s consider the following data:

1. Up to 30% of Customer Service calls are related to login issues (Gartner Group).
2. Each individual call costs around $25 or €20 (Forrester Research).

This means that, for every 1,000 calls to Customer Service:

Up to 330 calls are related to login issues.

$8,250 (€6,600) is spent on login issue related calls.

This clearly shows any loyalty programme’s hidden costs.

Purchases attributed to a non-member

It may be possible for a non-member to use someone else’s account to enjoy member benefits.

While it is true that affiliated companies would benefit from a client purchasing their products/services with a false account number just to earn loyalty points or enjoy a discount, the information collected on that specific consumer’s habits would be inaccurate. If this were the case, what value would that loyalty club provide to the company in question?

The high cost of being GDPR compliance

Handling sensitive customer identification data is not cheap.

Biocryptology acts as a GPDR data container, providing companies access to their customers’ data anytime, anywhere, without having to maintain the costly IT infrastructure required to meet GDPR standards for keeping such data safe and secure.

This applies to online and physical environments that require full control over who is accessing the service or location. This is particularly useful at clubs, gyms, office buildings, restricted-access areas, and military facilities, etc.