For retailers, loyalty cards are about increasing profits and rewarding the customer with freebies or cash when they sign up. But are we really making as much savings as we could be by committing to these cards? I figure shopping around easily outweighs the savings made by a loyalty card. Yet the cards are designed to stop you from shopping around.
The answer I suppose is to sign up to as many cards as possible and cover all bases. Yet with many card schemes, when the store swipes your card, information on your expenditure, what you purchased, where and how you paid for it is entered into a databank profile of your purchase history, along with the personal information you gave when you signed up for the card. This information is then used to maximise their product positioning or to post offers to you that they feel will be most enticing to you. So you spend even more. Yikes!
In addition, subconsciously you know that the more you spend at the shop, the more points or vouchers you’ll get back. Floating around in your head is the idea that the more you spend the more you save when in reality it’s the more you spend, the more you spend.
Do you find you make savings with loyalty cards or are they just a swindle?