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Store Discount Cards
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Written By:
David Catt
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Publishing Guidelines: Permission is granted to publish this article electronically or in print
as long as it is unedited and the bylines at the end are included. If published on the web, the
url in the resource box must be hyperlinked. A courtesy copy of your publication would be
appreciated. Thanks!
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 the store has granted the 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 the store get in return for giving you a discount?
Answer: Money! Hard to believe that the store can make lots of money by giving you discount!
How? Answer: They sell the 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 the easiest and low investment money the store
makes. The information the store already gathers to track their stock instantly turn into - continued below ...
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continued ...
easy
money with the swipe of your card. Why do you think they always ask you for the discount card
even if you don't necessarily have discounted item?
Remember how much personal information that you gave them to get the discount card? All the
information the market research companies have gathered from stores is then crunched, analyzed,
compared, sorted and studied and finally put into custom reports. The report could be who is
buying a certain type of item (example: chocolate chip or peanut butter cookies?) to which brand
of hot dogs is selling best in a certain region to whatever type of data report a customer wished to
purchased. The possibilities are endless. To get an idea, do a web search for "market research".
Look at reports offered.
Who purchased these reports? One (of many) was possibly the manufacturer of the product that
was discounted by scanning your card. The manufacturer pays for the market report with money
they make from you purchasing their product. So who really paid for that discount? You did!
Humor: I wonder what those market research computers thinks when it records a single male
purchasing an "unmentionable" item for the lady currently in their life! How badly does that
effect their statistical analysis? :)
Until the litter box needs emptying again!
About the Author
David Catt is president of CTS Innovations, Inc. maker of Stand Ready (tm) brand Inverted Bottle
Holder and he is the author of the "Idea to Product Primer" e-book. For more information, visit
http://www.standready.biz
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