The Secret Truth about Reward Cards
Presently, you may be hauling about twenty or more reward cards. You may have three airline reward cards, a couple of gas cards, several reward cards for restaurants, one for auto part, several for departments stores, and so on. So, I wonder, why are there so many of these cards?
Reward cards are also called loyalty cards, but there is no real loyalty created by these cards. Isn't it obvious that is another (better) is reward offered elsewhere, customers will quickly migrate to that store? If the next store offers better food or options, the reward card means nothing. So, it is time to look closer at the truth behind reward cards. Rewards are a meager offer to collect data on consumers (you).
By now, we know system that controls the reward cards is actually gathering data. What few consumers do now realize is how valuable all this data is as companies compete for your business. Data mining and data profiles are worth gold to large corporations. So giving away a half-cent (if ever redeemed) is small consideration for what they get from consumers. Financial services are willing to give away pennies to get data that is worth thousands of dollars to better target their marketing efforts.
This data can track trends in your city or zip code, find out what people are buying, or sort the demographics for age-related decisions. The vast amount of small informational inputs are data-crunched by algorithms and artificial intelligence to produce highly-defined images of who each consumer is, what they buy, and when they buy. They probably know vastly more than we might think.
Reward or loyalty programs are rarely what they claim to be. Like bait in a trap, insignificant rewards trick customers into handing over their private information.
But, now there is a better loyalty program that lives up to the promise of rewarding customers. Lextra offers high-value rewards (dollars, not pennies), but does not collect any buying data other than the basic information (meaning a telephone number) needed to make the transaction. Lextra does not sell this information or attempt to turn consumers into a profile for marketing purposes.