So, when I encounter a place of business in which repeat-shopping is both frequent and extremely important, I am taken aback a bit, nay, maybe even offended, that I cannot earn something for my loyalty. Perhaps these businesses are more of the ilk that our business relationship is more like a friendship, in which I shouldn't expect to be compensated for my loyalty and patronage the same way a true friend should not expect anything in return for helping out a friend. Unfortunately, that's not how I see things. As such, I am at a loss for words why these companies do not employ some type of compensation for me spending my money on their goods. The benefits, from my standpoint, always seem to outweigh the administrative costs.
I am much more likely to shop exclusively, or almost exclusively, with a store that has a loyalty/rewards program. I am handing over to you, not only my personal data (name, address, phone number, age, sex, etc.), but also doing your market research for you. For you see, your rewards program, if sophisticated enough, will track every purchase I make and compare them with each other. You'll learn that for a savings of $0.15, I will switch brands of croutons (meaning I have low brand loyalty). I will jump brands of Organic Milk for even the slightest of reductions in price. I will buy the generic/private label brands of almost everything, except breakfast cereal. Not only can you sell my personal demographic information to the highest bidder, you can sell extremely specific information about my purchasing habits that can be aggregated into studies about my particular set of demographics. The skilled would even be able to determine other factors, like psychographics. And I am a willing participant, because I get to save those $0.15 on croutons.
With all of this in mind, for the life of me I cannot figure out why Trader Joe's and Whole Foods don't have customer loyalty programs. Perhaps people are loyal enough, the stores just don't need them.
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