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What legislation do the shops need to be mindful of when using loyalty cards and why?
Wiki User
∙ 10y ago
Some large shops such as supermarkets run loyalty card schemes.
When a customer applies for a loyalty card, they have to fill in an application form which asks for personal details such as name, home address, email and so on.
In return, they are issued with a Loyalty card that resembles a credit card in size and appearance. The loyalty card only contains their customer membership number.
The card is swiped when the customer buys something and they are rewarded' with a discount, typically 1p for every £1 spent.
This would only seem to benefit the customer as the entire scheme is free of charge. However, supermarkets also benefit in other ways.
- Increase the amount customers spend as they are keen to get their loyalty points
- Build up a profile of their typical customer e.g. age, gender, average spend etc.
- Track customer spending habits
- Offer special promotions in partnership with other companies e.g. hotel discounts
- Measure the results of special offer campaigns
- So the loyalty card allows the supermarket to build up a very accurate picture their customers.
Wiki User
∙ 10y ago
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