Loyalty Cards

When a customer applies for a loyalty card, they have to fill in an application form which asks for personal details.

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.