What: Clear privacy communication is becoming a loyalty driver as consumers expect brands to explain how their data is protected and used.

Why it is important: This highlights the risk that opaque data practices can weaken loyalty, trigger disengagement and expose brands to reputational damage.

A Sogolytics survey shows that customer loyalty is becoming more polarized, with both very loyal and somewhat disloyal shoppers increasing in Q2 2026. The share of “somewhat loyal” consumers fell from 43% in the first quarter to 32% in the second, suggesting that middle-ground loyalty is weakening. The research points to data governance as a major lever for rebuilding trust. Two in five customers say protecting customer data should be companies’ top CX priority over the next decade, ahead of reducing consumer costs. Just under half trust companies to protect their personal information, while two-thirds say they would stop doing business with a company that sold their data without consent. The article argues that transparency must be clear, contextual and integrated into the customer journey. Two-thirds of consumers want companies to be more transparent about personal data use, and 62% say they are more loyal to brands that clearly explain privacy practices. “Just-in-time” explanations can make data requests feel useful rather than intrusive.

IADS Notes: Data transparency is increasingly becoming part of the loyalty equation, especially as consumers expect brands to explain not only what information they collect, but why it improves the experience. In May 2026, Harvard Business Review found that stronger privacy rules can increase consumers’ willingness to share data when brands communicate clearly and use information responsibly. Journal du Net’s November 2025 work on omnichannel loyalty similarly showed that coherent, transparent customer journeys are essential to rebuilding retention. Inside Retail’s July 2026 analysis of silent brand abandonment reinforced the risk of trust erosion, showing that consumers may disengage without leaving visible complaints. The Diplomat’s March 2026 coverage of Coupang’s data breach highlighted how weak data governance can damage reputation and trigger executive accountability, while the Financial Times’ May 2026 reporting on surveillance pricing showed that opaque personal-data practices can provoke backlash and regulatory scrutiny.

Data transparency is a tool to win back customer loyalty