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The Truth about Supermarket Loyalty Programs

by: philipjackson on Date: Thu, 7 Apr 2011 Time: 8:40 AM

Most retail establishments offer customer loyalty programs for their devoted customers. Local supermarket areas have also joined the band wagon of loyalty programs by generating membership cards for their frequent clients. Purchases are converted to points, which can be used to access exclusive offers. These include discounts on particular products and special deals offered only to the members.

However, most people might not agree with the advantages that supermarket loyalty programs give to their customers. First off, prior to becoming a member, they should supply personal information upon registration. This is normal protocol for all registration processes, but others think that this is a violation of their privacy.

If a person is a registered member of the supermarket’s loyalty program, his information is entered into the supermarket’s database. Every purchase made, every specific brand and product chosen would all be recorded in the account. Together with buying preference, the frequency of visits to the supermarket is also keyed into the database.

In this case, the supermarket loyalty reward program entails the collection of specific information pertaining to the purchasing habits of its members. This can be considered as vital information to the supermarket’s business partners, brokers, and telemarketers, and can be fished from the database without one’s knowledge. This risk is perhaps the greatest one that potential members should be wary of.

In addition, the detailed shopping information can be used to adjust product prices, all according to the data gathered from the members of the supermarket’s loyalty reward program. With this in mind, people can say that those supermarkets with reward programs are somewhat invading their privacy.

Shoppers must be cautious when offered with loyalty reward programs such as this. They should know all the terms and conditions of the deal before signing up for the service. There might be limitations to the program that the supermarket agent might be withholding, so it is best to read through the fine print prior to making any decisions. If they are not regular customers of that particular institution, it is better to just let the deal slide because they won’t be able to access the benefits of the program anyway.

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