Can a Customer Loyalty Database Change a Society?
Retrospeak writes "'Organisations that continue to put the brand at their epicentre and pay only lip service to the notion that the customer is king, will fail. It's just a matter of time.' So says business strategist Clive Humby. His marketing company, Dunnhumby handles the loyalty scheme database for Tesco, the third-largest retailer in world and the biggest retailer in Britain. This fact combined with a strong customer loyalty program means they may have one of the largest databases in the world. The Economist goes on to state that Britain itself is being changed by the secondary effects of Tesco's massive customer-driven database." From the article: "Some of these changes are small. The dust jacket of a book that was to be sold in-store was recently altered because a Tesco buyer did not like it. Others are more fundamental. Before the Clubcard came along, the largest panels that suppliers could use consisted of around 20,000 people. But suppliers can now pay for access to the database and many just rely on Tesco."
As long as customer databases are mistaken for customer service, it'll certainly not change anything for the better.
Stop whoring that link around. It's getting very spammy to see it in every story that remotely mentions the UK now.
What type of database is this running on?
I live in Central New York where we have the pleasure of shopping at Wegmans Supermarkets. Wegmans uses a shopping card, is very receptive to even the smallest suggestions from customers, and goes out of their way to satisfy all customers. They track purchases carefully and have a giant database from which they mark trends and make changes. To put it simply, they rely less on the brand name and more on continuously improving and changing. For this reason, they have sent at least three different supermarket chains in the area scrambling or out of business. Wal-Mart hasn't even made much headway because Wegmans is so good.
Then there's GM. This dinosaur doesn't give people what they want--a well-built car that lasts a long time and sells for a reasonable price. Simply put, they don't get it. They believe that they have always been and that they have always done things the one true way.
Which company will grow?
Yeah, I'm as old as my UID would suggest.
I seem to remember a hackers conference where it was suggested that everyone should bring along their loyalty cards, and then do a swap.
If enough people did this, the databases would suddenly start to pick up on unexpected trends - customers whose profile suggested eating tofu and lettuce would suddenly be buying cigarettes and crisps etc.
It seemed like rather an interesting idea to me...
Welcome to the world of datawarehousing which has been going on for more than a decade. How is this news?
Here we like to call the remembering databases becase they remember the information we put in them.
Do not try to read the dupe, thats impossible. Instead, only try to realize the truth
What truth?
There is no dupe
A database isn't needed for this. If the two Tescos were instead simply two unrelated corner shops, they'd still be selling different things. Local shops tend to do that - sell things that are in demand instead of things that are not in demand. No special database needed.
It's useful for other stuff though, like the article says, customer profiles means you can send a specific set of discount vouchers to each customer based on their preferences. You could get a similar effect by shipping all vouchers to all customers, but I suspect this would be less effective as most people are more likely to use a couple of vouchers that they find interesting rather than look through a booklet of dozens of vouchers to find ones that are interesting to them.
That's a bit silly, really. It leads to bland stuff that has been toned down to not offend anybody. Sure, if it offends a whole bunch of people, it might make sense to alter it, but one person?
shoppers use these kinds of cards at many u.s. grocery store chains already to get discounts and promotions. the biggest recurring complaint i hear is itchiness about privacy, and it's a little odd the article doesn't mention that at all. i mean, sure... they save a few dollars on your bill and add some clout to your pining for chive chip dip. but do you really want it on record that you bought crayons, vaseline and a spatula on your last stop at the corner market?
The local Tesco store near where my parents live has killed most local commerce and the next town (5 miles away) suffered greatly until a supermarket was given permission to build a large store on a town centre site there.
It is more correct to say that the hypermarket has changed Britain, but Tesco happens to be by far the most successful example. IIRC the statistic is that 1 out of every 3 GBP spent in the UK is spent at Tesco.
In their defense they say "Tesco tries to see off criticism by arguing that it gives customers what they want and keeps staff happy." You could easily turn that around any say that they reinforce customer habits by offering them offers on their usually consumed high value items. You rarely see offers on bread, milk and sugar. Rather more on your favourite desserts and higher margin goods. By suggesting that others purchased Turkey Twizzlers with Claret and then offering other Turkey Twizzlers offers on Claret rather sounds like moving everyone towards a common denominator to me. But one thing is for sure, it sure sells product! So if your goal is to survive in the continual drive to make consumers consume more and more (and at credit too - with the Tesco credit card, Tesco loans and with a Tesco banking service) then you're onto a winner by being just like Tesco.
Conversion Rate Optimisation French / English consultant
From the article "Tesco's power is causing resentment. Most openings of big new stores are greeted by fears for local shops and a campaign to keep Tesco out. Tesco suppliers refuse to talk about their relations with a Goliath that is not frightened of using its bargaining power. There is even a pressure group, Tescopoly, dedicated to breaking the company up. Responding to popular pressure, the Office of Fair Trading (OFT), a government agency, has asked if Tesco is too big, and looked at its relations with suppliers. This week it concluded again that the grocery market is working.
There is an urgent need for stricter laws governing the behavior of the mega-corporations and a brave and uncorrupted judiciary to enforce them.
# ~: no sigs today
This seems like the perfect implementation of an affinity program. I find the closing parapgraphs regarding the OFTs interest troubling.
Tesco is a public company listening to customers, providing them with the goods and services they desire, and doing so for a fair price. Somehow to a group of people (and the OFT) that is improper. Since when did the "small shops" receive some type of right to exist and operate? If Tesco provided a better value for customers then that is where the customers will go.
I did the majority of my grocery shopping in Tesco while living in the UK. The stores were good, and I could even get home delivery. There were a couple small corner shops on the way home from the tube station as well. If I needed a loaf of bread, carton of OJ, or a pack of smokes they were a good quick stop. If stocking up my pantry/fridge for the week I'd go to Tesco. The small shops didn't have the products I wanted to buy.
a loyalty card with rfid and customers with remote control implants.
"Smedley, there's a customer in aisle 7 with a weakness for cream filled donuts - jerk him over to aisle 3 quick!"
try { do() || do_not(); } catch (JediException err) { yoda(err); }
In essence, isn't the Tesco loyalty card system like a sophisticated representative democratic process? People "register to vote" using a loyalty card, vote by buying goods, and Tesco watches the results of the "election." Tesco knows who buys what and can thus go to suppliers and argue for changes that are more likely to satisfy customers.
Although non-loyalty card users still count at Tesco (all retail is a type of democracy in that people vote with their pocketbooks), I'm sure that the product choices of loyalty card users are far more influential with Tesco and thus with suppliers. In that regard not having a loyalty card is like not having a voter registration card.
Some might argue that voting should be anonymous, like political democratic elections, and perhaps it should. Yet non-anonymous voting provides valuable information -- e.g., Tesco might notice that, for example, people who buy lots of hot soups in the winter don't buy high-sugar fizzy drinks in the summer or some other correlation that is only observable if you can know that shopping basket A and basket B (6 months later) represent the same voter. These long-term correlations aid in both store assortment planning and forecasting.
Two wrongs don't make a right, but three lefts do.
mmm
After reading the article about Tesco, you have to wonder does a place with paid annual memberships like Costco do the same thing (not that hard to do given that every time you check out of Costco you have to swipe the membership card anyway) in terms of tracking customer trends.
did some sheesh like this? That would be interesting for the US economy for sure.
My humor is probably your flamebait
That said, I appreciate the proper spelling.
Some of these changes are small. The dust jacket of a book that was to be sold in-store was recently altered because a Tesco buyer did not like it. But customers don't really know what they want. They'll ask for something but in reality it won't be really what they wanted when they get it. Also, a lot of people have different tastes, why try and make one product fit all? Have more variations. Try two different book covers on the same book. They do it for other media (games, videos, music) etc...
Tesco's power is causing resentment. Most openings of big new stores are greeted by fears for local shops and a campaign to keep Tesco out.
Say what you want about how much nicer Tesco is than Wal-Mart, it seems like they face the same issues in the communities they are entering.
Tesco use a Teradata data warehouse analytical/relationship marketing. They're a division of NCR.
The article doesn't say if the database has it's entry linked to people or store and that is the information I wanted. If they contain people name and infos I'm against it, their suppliers can buy an access to the database and that alone scares me about it. If their database simply is linked to a store then it becomes a really good idea with a lot of practical uses and none of the big brother scare.
However the important point in the article isn't the database, it's the fact that a company is becomming big NOT by becomming cheaper but by becomming better and that alone should be a lesson to many capitalist out there.
So shall we throw out all the quality managment standards, like ISO9001? I don't think so.
You have to fullfill your customer requirements - if you need a database to track all of them, good. But you should not be able to sell it, rent it or otherwise pass this information to third parties.
ISO9001 Certifications are consumer/customer centric. If you don't know your customer, how can you archieve ceritifcations like this - you need a database of customer requirements, right?
Quoting from the ISO site :
The ISO 9000 family is primarily concerned with "quality management". This means what the organization does to fulfil:
- the customer's quality requirements, and
- applicable regulatory requirements, while aiming to
- enhance customer satisfaction, and
- achieve continual improvement of its performance in pursuit of these objectives.
...between a well informed market and a democracy, is that the democracy is zero-sum while the market tries to serve all profitable niches. That's why Tesco carries both regular pasta and low-carb Atkins stuff (and no-gluten stuff, and rice pasta, and etc). It's not an election between the carb and anti-carb parties, where the winner takes all and the rarer minorities get stiffed.
What is the point of this? All it would do is screw up all the marketing research, resulting in them shoving more crap you don't care about down your throat whenever you go to buy groceries.
Personally, I hope to hell they learn everything they can about me so that my shopping experience will go smoother and faster.
Can a Customer Loyalty Database Change a Society? Probably.
Can a Database Customer Loyalty Change a Society? Certainly.
Karma: Positive (probably because of superiour intellect)
Every time i go to Tesco, without fail, they ask me the same question "do you have a tesco clubcard?"! Do i have a fucking tesco club card? do i?? if i had a tesco club card would i be standing there holding out my money without it? would i actually forget to take it out? I know they are trained to do this, they have no choice and i know by the tone of their voice they are fucking fed up of saying it more than im fed up of hearing it, in fact i feel sorry for them - to have to say the same phrase 100's of times a day while listening to people saying it all around you must be hell. Theres hardly any other talking going on at the check-out, the only thing you hear is the total and do you have a mother fucking tesco club card. Sometimes I wonder, should i just get a tesco club card to make them shut up? even having to pull an extra thing out of my wallet every time would make up for it! If getting a card ment just being handed one and not having to fill anything in then i probably would, but it probably takes a form a mile long. If tesco want me to use a card then its going to have to be anonymous and not require me doing anything.
This comment does not represent the views or opinions of the user.
There is a large assumption here, which is that only the customer who was issued the card is the person that ever uses the card, which is not true. Especially when said cards have incentives like "points" that can be accumulated to obtain free items, or a straight discount for using the card. Such card "borrowing" will skew the data in the database, since the computer assumes that the card equals the person, which is not necessarily true.
Card borrowing does skew the data, but how high is the actual frequency of this practice? Moreover, I'd bet that many card borrowings are between demographically similar people. If one 22 year old college student borrows a card from another 22 year old college student, then the effect on Tesco is minimal. Yes, card borrowing affects the data, but I doubt it ruins it.
You could argue that Tesco's buying policy really is only concerned with the aggregate information anyway since they won't make a purchase decision based on a single cardholder, and this aggregate is unchanged by card "swapping". But then why do you need to track individual information?
Aggregate data only gets a company so far. Consider the problem deciding where to put a new store. The only way Tesco can accurately do this is by cross comparing the census records for the proposed area with Tesco's own data on who buys how much and from what distances at its existing stores. If Tesco knows that people drive 20 miles to reach a Tesco, then its less likely to put another Tesco within 10 miles of an existing one. And if Tesco sees certain demographic groups is a new area, they can estimate likely sales and the best product assortment by studying the sales habits of those demographic groups within its loyalty card program. Breaking down the customer base by distance to store, types of goods bought, ages, income, etc. all help the company do a much better job of store siting, merchandise assortment, forecasting, etc.
Yes, only aggregate data is useful. But the loyalty card program lets Tesco aggregate data in new ways -- aggregate by customer age, gender, distance to store, household income, or tendencies to buy products. Store-level aggregate data or even simple market basket analysis isn't going to give as good an insight into the relationships between customer categories and shopping habits.
The answer is because they can. However the whole concept of "keeping a file" on someone is rather macabre. I have access to my criminal record, my medical record and my credit record. I should have access to all information ANYONE keeps on me unless it's being used to prosecute me for a crime. When is this going to happen at the supermarket? Until then, I refuse to use these cards.
I very seriously doubt that Tesco spends millions of pounds (probably tens of millions of pounds) on its loyalty card database just because it can. Most businesses insistent on a bottom-line improvement in the business before laying out that kind of money. And if a company does spend that type of money and doesn't get a profitable return, they stop the program. Morevoer, the type of data collected by a loyalty card program is perfect for assessing the business benefits of a loyalty card program. Tesco started their program 10 years ago. I doubt it would still be in use today if it didn't provide direct benefits to the company.
Two wrongs don't make a right, but three lefts do.
Our local Kroger affiliate offers these discounts via a "Plus Card" but you can buy the same item at other stores at the discount price without a card. When I visited my daughter in Augusta, Georgia, all the stores seemed to use this system and rather than pay more I just filled out an application with a phony name. The whole practice is insidious.
The problem with lying is that, once you use a credit or debit card, your true identity is known exactly.
Classic example of a headline having nothing to do with the article it refers to :-) The Economist article does not really state that Tesco is changing Britain, except the well know Wal Mart effect of "devastating" small businesses in the areas they moove into. Apart from the issue not making any sense at all, because the only thing the data from the card can change by definition is the behavior of Tesco, not the British society.
For me the Tesco card is just an example of a very well executed marketing tool. And it won't help them when the big German retailers get their act together and at least make a serious attempt to grow in Britain. A 25% price differental between German and the British retail prices is an argument the best customer loyalty card cannot beat.
Anyone here ever read Jennifer Govenment by Max Barry?
It's a crime drama/thriller set in a future where People take the name of the company they work for as their surname (John Nike, Ken Wal-Mart, etc.); and customer loyalty cards and brand recognition inpsire riots, war and murder.
I read it the same month I read Farenheit 451, (which might be the single best book I ever read.)
*THAT* was a fun month for paranoia, I can tell you.
All y'all that haven't read those two books need to go out and do so IMMEDIATELY. Thank you, Public Library for having them on the shelves.
"Lawyers are for sucks."
- Doug McKenzie
The British GDP is about 1 Trillion [1.7 T USD]
That seems a far cry from 1 out of every 3 GBP. Unless you mean, maybe, actual currency passing thru the stores, at some point.
This issue is a bit more complicated than you think.
.. Scientology.
honest. ron was on top of this in the 50's, people. read the HCOPL's!
So your shopping experience can go smoother and faster?????? Are you kidding me?
Why do you assume that these stores are using your information to provide you with better service? Yes, that may sometimes be its ancillary effect, but their overall focus and intent is to squeeze as much money out of you as they possibly can. Read some of the studies sometime as to how they use this information.
One store, by studying its databases, found that men often buy beer and diapers on Thursday evenings on the way home from work. Knowing that men are less price sensitive than women generally, and also that such "home from work" purchasers are less likely to be using coupons and comparing prices, the store decided to wildly jack up its prices on beer and diapers on Thursday evenings.
They don't use these cards in some benificent, "oh, let's be kind to the customer today" ways. They're trying every which way to soak you on price! And you go right along with it.
Man, there ought to be a style of hat for the opposite of tin foil, for folks like you who are so incredibly gullible that they will believe anything a store tells them.
I think maybe a nice plastic wrap hat should do it. Anyone got any other good ideas? What is the opposite of a tin foil hat?
> Card borrowing does skew the data, but how high is the actual frequency of this
> practice? Moreover, I'd bet that many card borrowings are between
> demographically similar people. If one 22 year old college student borrows a
> card from another 22 year old college student, then the effect on Tesco is
> minimal. Yes, card borrowing affects the data, but I doubt it ruins it.
Tescos actively encourages card borrowing - my girlfriend has a Tescos card and they mail her smaller cards that fit onto your keyring so partners, family members, friends etc who don't have their own card can earn her points.
If you don't use your loyalty card the terrorists will have won.
In other news, authorities say that spatula-related terror incidents may be on the rise. Be vigilant. And keep shopping.
Your time... is my time.
"Our interests are to see if we can't scale it up to something more exciting," he said.
Most folks may not know that Kroger created a USA subsidiary with dunnmumby. The goal is to apply the Tesco magic here in the US.
Comment removed based on user account deletion
These sorts of things dont really bug me so long as the clerk at the market will give me cards when the form sais that I am bBart Simpson from 123 Fake street, Antcity Indiana...No joke...I have that as a card for one of Americas biggest chains, and other greats like George Washington, 1600 Pennsilvenia Ave, Washington, DC.
May be it's just me, but what we learn from the article about Tesco that we did not know after we've read two years ago about WalMart use of the databases in CRM (BTW it is also Teradata DB).
...a stunned silence fell upon the hall.
whats funny is its run by an American on his home ADSL connection
namely
Louis Waweru
youngbonzi@earthlink.net
user-0c8h4ji.cable.mindspring.com
DOB 11/09/1981
AOL: louislogicnyc
YM: lushlouis
must have big ears if he can hear whats going on in the UK, why he would want to spam here (with multiple accounts) is pretty weird, i guess thats what 24 year old Americans do
Tesco give you back 1% of what you spend - so there's a very strong incentive to make sure that all your cards are registered to your home address.
They don't pull much of this "card member discount" crap that stores here in the US do. When i lived in the UK I would probably use half of all the coupons that tesco mailed to me - they were THAT effective.
This story reminds me of a book written by Max Barry, titled Jennifer Government...
In that book, there are 2 major customer loyalty programs with all big brands participating in one of them. The world is run by the corporations, employees take on the name of their employer and the police is now a publicly owned security firm (participating in one of said programs) which only investigates crimes if they can bill the investigation (on the victim of course)
Affinity cards are part of this branding. They exist to remind the customer of the shop, and may limit the customer choices due the inconvince of carrying multiple cards. For the purpose of data collection such cards are hardly neccesary, as most of us do not use cash. Sales can be matched to most customer through payment accounts. In fact stores that primarily want to gather personally identifiable information can do so without the need of affinity cards.
In the end customer service is about knowing your customers. What we are talking about here is not really customer service, but customer expansion. That is, knowing what your customers might want, and knowing what those who are not yet your customers want. The megastores provide a service for the consumption hungry person in the west who will drive thier SUV 20 miles and load it up with stuff they don't really need. Those are who the stores want. The customers that don't require service but merely stuff. But they don't really don't do much for the person who just needs to get some food for thier family at a reasonable cost. Those that still value the well stocked but not overwhelming store, helpful people, and competant cashiers.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
To stop marketing. Just sell me stuff, don't shove it down my throat. Stop spending money on marketing, start increasing quality and/or lowering prices.
Stores that use these tracking card systems always charge more than stores that don't. There have been many studies that have proven it. Check the Wall Street Journal. You can prove it yourself, I did. Just check the prices of items in the store, before and after they go on sale with a card discount. One week the frozen fish is 2.99. The next week, it's 3.79, but you get .80 off if you use your card! You're saving .80! What a bargain! As long as the sheep who shop there think they are saving money, the store is more profitable, so it's all good, right?
By the perception of illusion, we experience reality
It's such a good article. Go read.
Wal-Mart was a trailblazer in inventory tracking and control. When they were developing those systems, they probably considered individual customer tracking to be too limited and unweildy for their purposes.
Wal-Mart weilds the same kind of power Tesco does in Britain, it's just that it's all new to Britain--here, the Wal-Martization of America is old hat.
I recently heard a story aired on public radio that claimed Harrahs Casinos maintained a customer loyalty database with something like 40 million names. I realize that it includes international customers but in perspective that's greater than 10% of the entire population of the U.S.
They are in the process of acquiring Caesars International with an eye on combining their customer loyalty database as well. Hell yeah, customer loyalty is important.
My friend is a serious gambler -- with a gambling problem imho -- and claims Harrahs does a fantastic job of rewarding continued play. Discounts on shows, great seats at sporting events, private dining tents, coach bus transportation, etc. They will pay as long as you play. Probably proportional to the amount you "voluntarily contribute."
At this level his activity can easily be seen as a transfer of wealth and a personal choice I suppose. But he and his neighbors recently voted down a referendum to increase taxes for education. His kids are grown so why bother?
Yes, the societal effects are subtle but I do believe they exist.
Recently Tesco's sent out keyfobs to all their clubcard customers. Instead of having to have your loyalty card on you they just scan the barcode on the keyfob. It means they can track the "just popped in for" and "I only want" cash sales as people will always have their keys but may not be carrying their wallet.
You are not understanding something. The local Safeway grocery store, for example, raises prices considerably on many items, and then offers the normal price only to card holders. So, if you pay with cash, you will pay 20% more.
...to tell us all that you're a member of MENSA?
I passed the MENSA test when I was 14 and was quite chuffed with myself (being a typically arrogant little jerk at the time)
By the time I was 17, it had dawned on me that MENSA members were on the whole a bunch of boring, self-congratulatory nonentities.
Also, they didn't really seem to be any cleverer than anyone else, just good at solving silly puzzles.
So stick your MENSA where the sun don't shine 'Babe'.
Yeah, it's a dead giveaway when he calls mobile phones "cell phones". Nobody in the UK calls them that.
Suburban Mother 1: "Oh, I shop at Tesco all the time. The prices are so low, and it's on the way to Timmy's school so you can't beat it for convenience."
Suburban Mother 2: "Oh dear, you mustn't shop there!"
SM1: "Why not, Phyllis?"
SM2: "It's not ISO 9001 certified!"
SM1: *GASP OF HORROR!*
I quit!
and heres a photo of him
r u0nl.jpg
http://img244.imageshack.us/img244/7412/louiswawe
poor kid, spamming his home adsl connection, and a black gangster/brit wannabe, guess Mcdonalds didnt want to hire him, must be a hard life in NYC
At least they were the last time I got one, you just said, "Yes I'd like one" and they gave it to you. No form, nothing.
They took the discounts and stuff off when it was swiped through the next time - don't know if that's changed or anything.
I heard that Skype kills Dunnhumby in the sixth book.
It Is the Nature of Information to Transgress Artificial Boundaries
I initially misread this too. But the question then arises: what does this have to do with the customer loyalty database? Did the buyer insist on the alteration after an analysis of the database?
It's not clear from the article that this is so - it appears to be an inapt anecdote.
On the subject of the customer database, I wonder if/how this will affect Jack Cohen's original, um, vision statement: "Pile them high, sell them cheap".
(glancing at watch) I'm still waiting...
--Rob
Towards the Singularity.
But, you can tell that they are really keeping an eye on their data. For example, as trends go one direction or another, you see those items getting pulled into the more visible areas of the store and, sometimes, put on sale for brief periods of time.
Nothing I've read so far explains why any of this requires a loyalty card. Trends will exist with or without being able to identify individual customers (as they always have). In fact, I can't think of ANY reason that a company would need this, other than to make money off of selling your personal information.
>>>The dust jacket of a book that was to be sold in-store was recently altered because a Tesco buyer did not like it.
>>That's a bit silly, really. It leads to bland stuff that has been toned down to not offend anybody. Sure, if it offends a whole bunch of people, it might make sense to alter it, but one person?
>I think you misread the article. The Tesco buyer is a Tesco employee who buys for Tesco. It wasn't a customer buying from Tesco who complained.
Even if he did misinterpret what a "Tesco buyer" is the comment is still correct. The Tesco buyer is one person and because they in their personal judgement did not like the book jacket it was altered. It's still one person making judgements for many.
...so how do you like you tin foil hat?
Just because you can't think of any usage doesn't mean there isn't one, it simply means you're not very intelligent. Trends can easily exists within a subset of the customers, say older women, while not being visible if you simply look at the total data. For example, if certain products are usually bought by the same people then you can attempt to move them closer together. You can also know that trends in one product are likely to cause trends in other products.
Some of you may be interested in reading a bit about these so called loyalty card programs here. http://www.nocards.org/
I am not usually the tinfoil hat type, and these people tend to go a little overboard with some of their logic (especially on the RFID side) but most of their information about the loyalty card programs I have found to be true.
Having worked for a grocery chain for 8 years and most recently a pharmacy chain for 12 years, I am very familiar with the pricing and promotion models used in both. Buying product, setting prices, and developing promotions was my job. The apparent savings offered to these loyalty card holders is nothing of the sort in most cases. Most chains simply raise the normal everyday price of an item and then offer what used to be the everyday price (pre card program) to only those willing to apply for and use the card. This is effectively charging a privacy tax to anyone not wishing to participate in the data collection program. Ironically, that privacy tax pays for collecting data on card holders, with no true cost benefit to any customers.
My favorite example of this is something near and dear to my heart, my coffee creamer. Back when only one of the three grocery chains in my town had a card program, my favorite coffee creamer retailed everyday for $1.19 in all three stores. Even the card store had to maintain that price everyday to stay competitive with the two non-card stores. This was a few years ago, when this card program was just catching on full force in the US. Well, eventually the other two chains joined in the scam and suddenly the price of my coffee creamer started to go through the roof. This item began retailing from $1.79 to $1.99 everyday but with a loyalty card price of $1.19 to $1.29. This is a non-dairy product, so fluctuating milk prices had nothing to do with it. If I had raised everyday prices in my category by 50-60%, I could have stopped buying and taken a long vacation before too long!
The pharmacy chain I left this spring just implemented one of these card programs about 6 months before I left. I was one of the only dissenters when the topic first came up in a marketing meeting. Everyone else claimed that we just had to have a loyalty program "because we look out of place if we don't." My stance was that not having one of these irritating programs could be a great marketing point. Unfortunately, most market research falsely indicates that the average consumer loves these damn things and of course our management team wanted to be loved.
Once it was decided that they would start their own program, I began to investigate the subject a little deeper and found the site above. It was at that time I also started to seriously think about my role in the process and began looking to get out of retail all together if I couldn't find a new employer with a little common sense and a focus on true customer service. I don't feel right charging more to people who simply wish to remain unmonitored.
If you are lucky enough to live near a grocer and/or pharmacy which does not have a loyalty program, do yourself a favor and support those stores. Tell the managers you shop in their stores because they don't insult your intelligence by offering you artificial savings in exchange for spying on you.
The Stone Age did not end because humans ran out of stones. - William McDonough
Ask to use the store card. I have been doing this for years and have never been turned down by the register oprtator.
When we shopped at Tesco, we received some cards from friends that were to leave Britain. So we kept the meager points and Tesco found a sudden change in buying behaviour after the "address change".
__
Men with no respect for life must never be allowed to control the ultimate instruments of death.
GW Bu
He he.
First I laugh at the mere bizarre image. Then I realized it was a Nigerian scammer and it became better.
Thanks for linking.
__
Men with no respect for life must never be allowed to control the ultimate instruments of death.
GW Bu
When these Clubcards started we got pestered with forms - as well as your name and address, they wanted to know your income, size and age of family, car, probably favourite colour etc. You could lie to get your card, but you can bet that the database is directly linked to the card user. In contrast, the Co-op restarted its century old dividend scheme using similar cards, but didn't ask for personal details. I find Tesco's worth avoiding, and keep supporting my local shops and small local Co-op.
If this is a matter of intelligence, I think I can reasonably argue that it's completely STUPID to hand over personal information without knowing exactly what it will be used for, and by whom. Typically, once it's out of your hands, it's out of your control. As for me personally, a store would need to have something pretty damed impressive up its sleeve in order for me to justify this constant monitoring of my purchasing preferences. Incremental changes to make things slightly more "convenient" just don't cut it.
Personally, I hope to hell they learn everything they can about me
This isn't necessary. If they would give me a card in exchange for learning that I'm a 32-year old married caucasian with one child living in my ZIP code I'd sign right up. That's everything they need to know to do their market research and improve the product supply.
But instead they want my name, address, social security number, and drivers license number so they can cross-reference it with lord knows which databases and sell marketing information about me.
So I use no card and pay $0.39 a pound more for chicken thighs than you do. Only when convenience mandates I not avoid those stores.
These are two entirely separate unrelated activities.
My God, it's Full of Source!
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