The Mistake That Could Be Costing Your Business Millions

Recently I have found myself deep in conversation with other CRM and Loyalty professionals about the current state of the industry. One theme kept coming up again and again. In an effort to reduce costs, more businesses are hiring junior resources, but loading them with the responsibilities of far more senior roles, at junior salaries. On paper, it looks efficient. In reality, it introduces a level of risk that many organisations are underestimating.

To be clear, this can be an incredible opportunity for the right junior talent. The kind of person who is ambitious, curious, and ready to step up. But without the right structure, guidance, and experience around them, the downside for the business can be significant. What starts as a cost-saving measure can quickly turn into a commercial, reputational, and compliance problem.

When that senior layer of thinking is missing, the cracks tend to show in predictable ways. Strategy often becomes disconnected from real commercial outcomes. Goals are set without a clear understanding of whether they are actually achievable. There is limited awareness of compliance obligations and risk exposure. When issues arise, the ability to respond is often reactive rather than controlled. Gaps in process go unnoticed, and perhaps most critically, there is no clear or consistent definition of what success actually looks like. CRM and Loyalty is not just about sending campaigns and offers to engage customer segments, it is about influencing behaviour, driving incremental revenue, and managing risk at the same time.

This becomes even more concerning as businesses lean further into AI and automation. There is a growing assumption that automation reduces risk and resources. In reality, it often amplifies it if not done correctly and not properly managed. AI-generated content and automated decisioning still require human oversight, someone who can sense-check outputs, understand edge cases, identify potential issues, and implement guardrails. Without that experience, automation can accelerate mistakes rather than efficiency.

I saw a simple example of this recently. I received marketing content from an online retailer that was, at best, questionable in nature. Clearly driven by some form of behavioural targeting, but completely off the mark. Easy enough to ignore and have a laugh at. But what if that same content landed in the inbox of a minor? What if a parent saw it? In a climate where we are actively trying to protect under-16s from inappropriate content, that is not just a bad campaign, it is a reputational issue waiting to happen.

And then there is compliance. On 15 April 2026, the Australian Communications and Media Authority (ACMA) took enforcement action against Latitude Finance, issuing a $3.96 million penalty after identifying more than 2.7 million breaches of Australia’s spam laws. Over 344,000 of those messages contained an unsubscribe function that did not even work. This was not their first offence either. In 2022, the company had already paid a $1.55 million penalty for similar breaches. As the regulator pointed out, there is simply no excuse for ongoing non-compliance, particularly after prior enforcement action.

This is not an isolated case. Over the past 18 months, Australian businesses have paid more than $10.6 million in spam-related penalties, including well-known brands like Telstra, Commonwealth Bank of Australia, and Lululemon Athletica Australia. These are not small, under-resourced organisations. They are large, sophisticated businesses and yet the risks still materialised.

That is the point. This is not just a compliance issue. When businesses underinvest in experienced CRM and Loyalty capability, they are exposing themselves to three very real risks. Reputational risk, where one poorly targeted or inappropriate message can damage years of brand equity. Compliance risk, where breaches are increasingly visible and penalties are material. Commercial risk, where ineffective strategies fail to drive true incremental value, despite significant investment in platforms, data, and media.

This is not about suggesting every business needs to build a top-heavy, expensive team. It is about getting the balance right. If cost is a constraint, there is a far more effective approach. Bring in experienced specialists to define the strategy, build the frameworks, and establish governance and guardrails. Align that thinking with senior leadership. Then empower junior talent to execute within that structure, learn, and grow. That is how you build capability without exposing the business unnecessarily.

Right now, everyone is talking about AI, personalisation, and automation. But without the right experience behind it, those investments risk becoming expensive noise, or worse, a liability. CRM is not an execution function. It is a commercial and risk discipline. And treating it any other way is where businesses start to lose control and potentially, millions.