A Disloyalty Movement? Supermarkets and Customers Drop Loyalty Card Programs

[Gormy Cuss]

Finally. Although the article starts by saying that customers are losing interest it's clear later on that some chains have realized they don't provide enough useful marketing data to justify the costs and alienation of customers who don't think they're worth the hassle.

It’s not just that the loyalty program cards or key chain fobs are a hassle. “Savvy customers understand that loyalty programs gather and utilize customer data to make marketing decisions,” the Colloquy study reports. “If programs are not crystal-clear in providing benefit to the customer in exchange for that information, and are not clear in their privacy policy, consumers can back off from participating.”

Shoppers aren’t the only ones who are tired of loyalty programs. Over the last few weeks, the supermarket company that runs brands such as Albertsons, Shaw’s, Acme Markets, and Jewel-Osco has been announcing the elimination of all loyalty programs. Shaw’s, for instance, has been pushing the change as “Card Free Savings,” in which “Everybody gets a low price,” regardless of whether the shopper is a loyalty program member or can produce a card to get zapped at the register. “The card isn’t so special anymore,” the grocery company announced via its website. “Everyone has one. So we want to take the special step of not requiring one anymore.”

Many customers view the change as a win-win: no need to keep track of a card (or use a smartphone app) for discounts, and no (or fewer) concerns about privacy and personal data. Other shoppers who have become masters at using loyalty programs to their maximum potential for epic discounts have reason to be upset about the idea of merely getting the same discounts as everyone else.

http://business.time.com/2013/07/11/a-disloyalty-movement-supermarkets-and-customers-drop-loyalty-card-programs/?iid=obinsite

[mick063]

1. Just lose it already

Speeds up time at the gas pump.

I have to acknowledge twice, at a gas pump, that I don't shop at a supermarket that is miles away. The added time inspires me not to shop there. Imposed advertising for the simple act of purchasing an unrelated product.

[MineralMan]

10. Hmm...the last time I filled up, though, I saved $.50 per gallon,

thanks to the loyalty program at my supermarket. Since I have to shop for food, etc., I don't really mind saving money at the pump.

It's my choice. I choose to scan my loyalty card to gain the discount. You can choose not to.

[Duer 157099]

14. No kidding

Those things have exactly the opposite of the intended effect on me. I hate the gas pump one with a burning passion!

Not only that, if given a choice of several supermarkets, I will go to the ones without the loyalty card discount because I don't want the card and I don't want to see how much I would save if I did have it. Just rather don't go there at all, problem solved.

Glad they're wising up.

[leveymg]

2. And, if they drop the discount, they can charge full mark-up to everyone!

Corporate orgasms and excitement in the Board Room and Stockholders Meetings. Also, NSA may be dropping its paid data collection programs.

[Gormy Cuss]

11. And loyalty cards aren't about getting more money from customers...

Oh wait.

[get the red out]

3. I hate those damn things

I put a fake identity on my Kroger card because it was the only way to get discounts we used to get as sales. They are so aggrivatung.

[TalkingDog]

15. Yep. Fake ID Address and Phone of an old defunct business I used to work for.

Let 'em pry.

[leftstreet]

4. Well, the NSA will probably stop buying data

All this pesky data collection press!

[GiaGiovanni]

5. The NSA is not "buying" supermarket data

It has a blanket FISA warrant with the phone companies. It doesn't need to buy anything.

[leftstreet]

6. True. Probably brokering it for a fee

The NSA doesn't really need your grocery store data, but other retailers do and they can't legally collect your info unless you volunteer it

[GiaGiovanni]

7. And you base that on.....

?

[leftstreet]

8. Just a hunch

I said 'probably'

No one really knows why the NSA would need to collect citizen data like a hungry shark filtering food.

Follow the money, I always say!

[GiaGiovanni]

16. I have a hunch that that President Obama doesn't really like broccoli

No proof. Just a hunch.

[leveymg]

13. I recall reading NSA does buy data from commercial aggregators and credit reporting agencies.

[Andy823]

12. Amazing

A thread on supper market savings cards, and you are trying to highjack it and turn it into a NSA thread! Give it a break!

[jmowreader]

18. What would the NSA need with supermarket data?

"Look at this guy, he doesn't buy bacon so he MUST be a terrorist!"

'No, he's a vegan. Big difference.'

[flvegan]

21. Don't be so quick to not judge.

We have our own terrorism act. Yup, fear the vegans! LOL

[jmowreader]

23. Well, there is that...

...except that it seems to revolve around large-breasted women standing nekkid in the middle of the street.

[pinboy3niner]

9. Good! I hope Vons/Safeway joins the trend of dropping the cards.

They have cardmember savings, PLUS special savings for cardmembers who are enrolled in a special program and click on special offers online (which loads the discountd prices onto your card). They even have computers in their stores for customers to use to click the special savings and print out a shopping list.

I use it for the extra savings, but I'd be happy tosee it all go away.

[olddots]

17. The "special" card was finally figured out

where I live the "big " grocery stores are empty while wizened and poorer shoppers flock to the old fashioned places that sell food instead of 900 kinds of energy drinks and dried dung chips .

Ralphs the worst of the 1%er owned chains has been having their checkers make the customers use the auto check outs which is like making the employers fire themselves .

30 years ago grocery store employees started losing benefits and pay while these cards were introduced .

[Raine]

19. I HATE those stupid cards, if you don't have or want one they keep on

trying to get you to sign up. Sometimes I'll agree just so they'll let me pay for my stuff and go. So then I end up with a shit load of those stupid things and next time I need one find I've left that one at home.

[Brickbat]

20. Big Data has made it unnecessary for retailers.

[Gormy Cuss]

22. Alas, I believe that you are correct.

It's cheaper to buy a canned profile of customers than it is to build and maintain their own microdata.

[KentuckyWoman]

24. It's becoming cheaper to buy the info from choicepoint.

Many shopper cards are registered to "Helen Backe" or "Michael Hunt" so buying from data miners that get all that info via the ccrd or debit purchase is far more effective....that would include buying habits from competitors as well.