Why supermarkets have loyalty cards




















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We wanted to make sure that our best customers were recognised and rewarded for their loyalty — whether they purchased online, or in one of our omni-channel bars Mark Roberts Co-founder and Director of Beer Hawk. Search for:. Watch now. You might also like. Partners who trust us. Accept cookies. Manage consent.

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Waitrose offers a loyalty scheme called myWaitrose. Rather than collecting points you can get freebies and access to discounts on your grocery shopping. You can sign up at Waitrose. You can also use your Nectar card to collect and spend points with over big brand partners, including Argos, eBay, Esso, the Sky Store and Vue.

Most partners will give you two points for every pound you spend, but some are more generous. You can check the webpage of each one for more details. You can sign up at Nectar. The Tesco Clubcard scheme has been around since You can collect points through Tesco Bank and Tesco Mobile, too. You can sign up at Tesco.

Each point is worth 1p and you can spend your points anytime, as long as you have enough points to cover the whole transaction. Advantage cardholders can also receive a free health and beauty magazine. Boots has also launched Advantage Plus. You can sign up at Boots. Points can be redeemed in multiples of You can then just pay the 22p difference. You can register for the scheme at Superdrug. You can pick up a card in-store and find out more at Paperchase.

You can register at Waterstones. Earn extra points. One way of making your loyalty card work harder is to maximise the points you earn. Keep an eye on the store's website to spot the opportunities. Nectar, for example, can share data with at least 49 companies including Argos and Easyjet, according to consumer group Which? Campaign group Privacy International said it is concerned about the "hidden data infrastructure".

It said retailers and third-party companies "hoover up information from a variety of sources" to create profiles, wanting to "know you better than you know yourself".

But Prof Paul Longley, who is one of a group of academics working at the Consumer Data Research Centre, said the so-called "big data" can "definitely be used for the social good".

But new big data sources can be used for the benefit of all," he said. A day without data. Image source, Getty Images. As we can see, among the two kinds of studies, the latter which deals with customers at an individual level is invaluable data which might be impossible to obtain even with specialized teams.

A store might hire a research team and pay them Rs 10 lakh and obtain results which in turn can be used to boost profits by Rs 25 lakh. But why spend Rs 10 lakh on research teams when your own customers are willing to give you that data for just Rs 1 lakh assuming Rs 1 lakh is your overall cost of giving away reward points and such discounts to boost your profits by Rs 25 lakhs with the help of loyalty cards?

Moreover, the customers directly participating in these studies provide them data at real time which cannot be matched by even the most advanced research teams despite their expensive consulting fees. However, if you are aware of these and ensure that you purchase only what you need without being restricted to any particular store and do not fall for psychological traps, then continue using loyalty cards by all means if it can help you save money.

However, the fact still remains that the store is not doing a favor to you by providing such services but it is the other way round.



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