Loyalty cards are a gold mine of information for supermarkets
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Supermarkets collect valuable information about their consumers from loyalty cards. Gerrit-Jan Zwenne, Professor of Law and Digital Technologies, tells online science magazine Quest: 'Consumers underestimate the value their data holds for supermarkets.'
If you use your loyalty card to get a discount on your groceries, the supermarket you use collects a wealth of information about your consumer behaviour. That information can include what you buy, when you do it, how often, at what time and in which location. 'Using the data that a supermarket collects about you, the company gains a gold mine of information about its customers,' says Gerrit-Jan Zwenne. ‘This not only allows it to arrange stock and logistics in a smarter way, but also to strengthen customer loyalty and make targeted offers, even outside its own range of products.’
'I suspect that most consumers underestimate the value their data holds for supermarkets,' says the professor. 'While the value to the consumer may be limited, for the supermarket it's definitely high.'
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Read the full article in Quest (in Dutch)