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Why do supermarkets have loyalty cards? (feddit.uk)

submitted 6 days ago by pottery@feddit.uk to c/askuk@feddit.uk

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Can't they just track everything you buy using your payment card?

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[–] abbiistabbii@piefed.blahaj.zone 11 points 6 days ago (1 children)

It's more than that.

The original purpose of loyalty cards, or at least the purpose that is commonly known, is customer retention. Clubcard is a perfect example of this. To earn clubcard points, you need to spend money at Tesco, to get certain discounts, you need a clubcard. Customer data is one thing, but customer retention is another.

[–] Tweak@feddit.uk 2 points 5 days ago* (last edited 5 days ago)

to get certain discounts, you need a clubcard.

This part is relatively new, Tesco were the first to do it but 5 years ago the normal offers were available for everyone regardless of loyalty card. But clubcard has existed for a long time before then - there were discounts and money off to be had though, through clubcard points.