Loyalty+Cards

Description
====Loyalty cards were initially designed to encourage regular customers to shop in the same store by giving them a reward. Every time customer buys something a certain amount of points go to his account, which later could be used to pay for another product. However, as the area of informational technology evolves the role of loyalty cards changes. Now they are used as a reach source of private information of consumers, which is used for store's financial and strategic benefits.====



====Magnetic strip/ small chip that is placed on a card contains data about buyer/owner and all of his transactions. Every time the owner swipes his card the store gets a data of what was purchased. In addition to that some of important data, such as email address, home address or a phone number is collected when the customer signs for the loyalty program. Later this data is used in __targeted advertisement and marketing__ (see this page: http://cyberitgs.wikispaces.com/Targeted+Advertising_Targeted+Marketing)==== This diagram shows the increase of Tesco store's profit with clubcards launching. It is seeable that the pattern rocketed because the store used data gained through loyalty cards to improve their business. Customer Knowledge (their preferences) Improved relationships with customers (with the help of data about consumers) Increased business (knowledge about customers) Bonuses and Rewards for consumers Keeping up with the competition Best customer marketing Select stock lines effectively Stalking customers (stalking their private information) Cheaping brand value (because of sales) Decreased profits (because of sales) High cost of implementation Hard to stop using it Misleading data about customers Threat to consumer's privacy
 * **Advantages of using loyalty card:**
 * ** Disadvantages of using loyalty card: **

media type="youtube" key="PHwJmEa53e0" width="560" height="315"Figure 3
John Matarese investigates what personal information stores take from loyalty cards.

Contributor: Anel Mamet
media type="youtube" key="hv4eEifsE08" width="420" height="315" = CASE STUDY: Tesco = This video shows the specific example of using the loyalty cards and the way how these cards helped the supermarket to increase their customer's amount.

Resources

 * Figure 1. Boots advantage card points event - City Central Liverpool. (2013, May 23). Retrieved December 4, 2014, from http://citycentralbid.com/offers/boots-advantage-card-points-event/
 * Figure 2. Patil, R. (2014, February 5). Supermarket Tesco pioneers Big Data - Dataconomy. Retrieved December 4, 2014, from http://dataconomy.com/tesco-pioneers-big-data/
 * Figure 3. Shopper loyalty cards. (2011, May 24). Retrieved December 4, 2014, from https://www.youtube.com/watch?v=PHwJmEa53e0
 * Arnett, G. (2013, October 31). Are loyalty cards really worth it? Retrieved December 4, 2014, from http://www.theguardian.com/news/datablog/2013/oct/31/are-loyalty-cards-really-worth-it
 * CASE STUDY: Tesco. (2011, October 10). Retrieved December 11, 2014, from https://www.youtube.com/watch?v=hv4eEifsE08 (Anel Mamet)