Customer Data Isn’t Always an Asset: Lessons from the Marriott Data Breach

As data analytics have improved, the massive amounts of data that companies acquire from their customers has only gained in economic value. In the corporate world of today, this data can be a real asset for companies. However, as today’s news, that the records of over 500 million guests of Marriott International’s Starwood division hotels were involved in a data breach, makes clear, corporate thinking about the value of customer data needs to be reevaluated.
Especially when it comes to corporate acquisitions, companies need to start treating customer data as a potential liability, as well as an asset.
In September 2016, Marriott International acquired Starwood for $13.6 billion. When Marriott International sought to buy the Starwood hotel chain, Starwood’s customer data, played a central role in their reasoning for the acquisition. Citing higher income and better brand loyalty among program members, Arne Sorenson, the Marriott CEO, specifically referred to Starwood’s loyalty program as a “central, strategic rationale for the transaction.” Loyalty programs, in addition to attracting repeat customers, also “provide hotels with a wealth of information on their guests” which hotels can use to “create laser focused marketing campaigns for various different kinds of guests.”
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