A Disloyalty Movement? Supermarkets and Customers Drop Loyalty Card Programs [View all]

[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