Do you ever wonder why supermarkets have "loyalty" card programs? You know, the little card you swipe to receive advertised specials. Your grocer's corporate office is actually compiling a comprehensive profile based upon your shopping habits. But what exactly are they doing with this profile?
You Read My Mind
Yesterday I received an email from Safeway, a popular grocery chain here in Northern California. Usually their emails don't catch my attention, but this one showed a list of items currently on sale...and every item listed was one that I purchase on a regular basis.
But how could Safeway know all this information about me?
I looked closer at the disclaimer at the bottom of the email...
The Profitable Business of Customer Information
Supermarkets are in a fight for survival; they have razor-thin profit margins and are constantly seeking methods to cut costs and increase revenues. As a result, stores are seeking alternative measures to generate income. Selling their customers' data is merely another revenue stream.
You've Got What They Want
Advertisers, retailers, and even insurance companies have a vested interest in your shopping cart. As reported by WorldDailyNet, if you regularly buy adult diapers, for example, you may be tagged as someone who has a bladder-control problem. Experts argue that this information could then be sold to the highest insurance bidder. As a result, your insurance premiums could be adjusted upward to absorb this increased health risk.
Consumers Against Supermarket Privacy Invasion And Numbering (CASPIAN) argues that the entire concept of "rewarding" certain shoppers is wrong in its entirety. They go on to say that these loyalty programs are nothing more than "coercion and strong-arm tactics". In other words, they say: "If you resist you'll pay a price".
The Future of Loyalty
Despite the consumer-group outrage, it doesn't appear that loyalty cards are going away anytime soon. In fact, it appears quite the opposite. Drug stores, electronics retailers, airlines, office supply stores, hotels, car rental companies, and even banks have joined the party. They all want your name, address, and to find patterns within your seemingly-random shopping habits.
Join the Dialog
A public relations battle is underway, and consumer groups can certainly use more grass roots involvement. If you are interested in learning about the worst corporate offenders, as well as information on how to participate, you can "Join the Fight" with CASPIAN.
You Read My Mind
Yesterday I received an email from Safeway, a popular grocery chain here in Northern California. Usually their emails don't catch my attention, but this one showed a list of items currently on sale...and every item listed was one that I purchase on a regular basis.
But how could Safeway know all this information about me?
I looked closer at the disclaimer at the bottom of the email...
The Profitable Business of Customer Information
Supermarkets are in a fight for survival; they have razor-thin profit margins and are constantly seeking methods to cut costs and increase revenues. As a result, stores are seeking alternative measures to generate income. Selling their customers' data is merely another revenue stream.
You've Got What They Want
Advertisers, retailers, and even insurance companies have a vested interest in your shopping cart. As reported by WorldDailyNet, if you regularly buy adult diapers, for example, you may be tagged as someone who has a bladder-control problem. Experts argue that this information could then be sold to the highest insurance bidder. As a result, your insurance premiums could be adjusted upward to absorb this increased health risk.
Consumers Against Supermarket Privacy Invasion And Numbering (CASPIAN) argues that the entire concept of "rewarding" certain shoppers is wrong in its entirety. They go on to say that these loyalty programs are nothing more than "coercion and strong-arm tactics". In other words, they say: "If you resist you'll pay a price".
The Future of Loyalty
Despite the consumer-group outrage, it doesn't appear that loyalty cards are going away anytime soon. In fact, it appears quite the opposite. Drug stores, electronics retailers, airlines, office supply stores, hotels, car rental companies, and even banks have joined the party. They all want your name, address, and to find patterns within your seemingly-random shopping habits.
Join the Dialog
A public relations battle is underway, and consumer groups can certainly use more grass roots involvement. If you are interested in learning about the worst corporate offenders, as well as information on how to participate, you can "Join the Fight" with CASPIAN.
Labels: Family/Home