Tom Haynes
Tue, 16 April 2024
Pret app
Pret’s attempts to crack down on subscription sharing was partly driven by a need to harvest valuable data from its customers, experts have claimed.
In March, the company announced that members of the Club Pret scheme, which allows them five free drinks a day for a £30 monthly subscription, would have to log into the app every time they claimed the offer.
It was rumoured the change was part of a crackdown on subscription sharing.
Last week the coffee giant admitted it had been forced to offer refunds after customers complained that they had been locked out of their accounts as a result of the change.
Tech experts have suggested the main reason Pret has cracked down on account sharing is to harvest personal data about its customers, which it can then sell to advertisers.
Jake Moore, cybersecurity advisor at internet security firm ESET, said Pret will “have already planned to write off five coffees per customer”, knowing the cost will effectively be offset by data harvested through the app.
Users who access the offer by using a digital wallet or screenshotting a QR code had previously been able to bypass Pret’s attempts to collect information about its customers.
As part of the overhauls to the app, Pret removed compatibility with Apple and Google Wallets, and disabled screenshotting.
Afterwards, customers began reporting that they were unable to log into their accounts, and had been denied rewards known as “Pret Perks”, accrued by spending money at the chain, because of technical glitches.
Mr Moore said: “The reason companies offer freebies is often offset by the data collection and analysis that goes with it but if QR codes are used by others not associated with the app, the data collected can potentially become fruitless.
“Data collection is a currency in its own right – Pret is simply going above other data collections in keeping it specific to their account holders.”
Loyalty schemes have proven lucrative ways for brands to make money by selling customer data.
Britain’s biggest supermarkets, Tesco and Sainsbury’s, make roughly £300m a year from selling information about shopper preferences gathered through membership cards, the Times reported last year.
Third parties can then purchase the data from loyalty scheme providers and use it to create more targeted advertising.
Pret’s cookie policy says data collected by the app can be shared with Google, Meta, and Microsoft unless customers manually opt out.
Chad Teixeira, an entrepreneur and angel investor, believes Pret’s aim in tackling password sharing “was not to crack down on people drinking free coffee, but rather to draw valuable insights to help drive profits and re-engage their customers”.
Pret posted profits of £50.6m in the 2022 financial year – a figure more than double the last time it had been profitable in 2018.
The chain credited its success to the subscription service, first launched in 2020.
Mr Teixeira said: “Subscriptions represent a commitment from customers to repeatedly purchase their products or services but the additional selling of the additional data capture creates a new income stream for Pret.
“By leveraging the customer data they’ve captured on the app their focus will be to shift this to third parties, like Google, to be able to increase ideal customer visibility online.
“Unbeknown to consumers who may just think they’re joining the subscription model for free coffee and a discount, their data will actually be being used for a much larger purpose of tracking purchasing behaviour, understanding customer preferences and eventually increasing profits.”
Pret has been contacted for comment.
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