Superquinn was one of the first supermarkets in Europe to launch a loyalty scheme 30 years ago. It was followed by Tesco in the late 1990s and soon after by Dunnes. These days, you’d be hard pressed to find a coffee shop or any place of business that won’t reward you for your ‘loyalty’.
Of course many of these schemes aren’t just looking for your loyalty. In exchange for points, discounts and deals these companies are collecting as much information as possible from your purchases. They often know where you live, how old you are, your marital status, if you have children (they could also hazard a guess as to how many you have and their ages) who you bank with, how much you like to drink at the weekend and other personal details about your health and grooming routine.
Companies then use this trove of data to target customers at certain times throughout the year to encourage them to spend their money with their business. As manipulative as that may seem, there is something in it for the customer too. Being ‘rewarded’ for your loyalty means you’ll get some of the money you spend with them back to use against future purchases.
The key to staying on top is to make sure you only buy things you would have purchased at full price, if you’re buying it just because it’s discounted, don’t buy it. Read more: Revolut launches new loyalty scheme in Ireland and you could get free air miles Read more: Switching my mortgage was a painful process, but I saved a fortune One.