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The Litter Box by David Catt Subject #1.2: Store Discount Cards. ©2004-05 - David B. Catt - all rights reserved
Ever wonder why stores really offer a discount card instead of just a sale? Loyalty?? Whatever name they put on them. One store calls it "Preferred". Makes me feel just so special (not). Funny how I never get "Preferred" treatment over someone that doesn't have a card! Maybe an exclusive checkout lines for those of us to whom store has granted privilege of a card. So many times, I have been stuck waiting at checkout behind someone that does not have a card. :(
Where is what I believe happens: So what does store get in return for giving you a discount? Answer: Money! Hard to believe that store can make lots of money by giving you discount!
How? Answer: They sell information about what you purchased to marketing research companies. Yes, several different marketing research companies. By allowing them to scan your card each time you shop, you give them permission to collect information that they may share (read as sell) with others as they see fit. That is easiest and low investment money store makes. The information store already gathers to track their stock instantly turn into easy money with swipe of your card. Why do you think they always ask you for discount card even if you don't necessarily have discounted item?