Loyalty Programs and Privacy

By Patricia Jordan

On a daily basis companies record our personal habits. That detailed personal information is used in ways that may surprise many. Most people are unaware of this process and how their information is used.

Loyalty programs reward and encourage loyal buying behaviour by providing discounts or points. Customers are required to provide personal information to retailers when they apply for a loyalty card. This information may include their name, address, birth date, bank account, credit card number, telephone number and other information by which they can be identified. While many people are aware that loyalty cards are used to compile profiles of their shopping habits and identify patterns that can be used for marketing purposes, they may not realize that this data is often shared with third-parties.

Supermarkets in Australia will soon be able to track shoppers via GPS as they walk through stores. Details of specials featured in the aisle the shopper is walking through will be sent to their mobile phone.

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Shoppers are spoon-fed
By Cosima Marriner
July 24, 2011

Each time you swipe that ubiquitous loyalty card at the checkout, exactly what you bought, when and where, is being recorded.

The major supermarkets, Woolworths and Coles, are using information about shoppers' habits to build detailed customer profiles attached to their loyalty programs.

Read the full article.

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Get the most from store loyalty programs