The original purpose of loyalty cards, or at least the purpose that is commonly known, is customer retention. Clubcard is a perfect example of this. To earn clubcard points, you need to spend money at Tesco, to get certain discounts, you need a clubcard. Customer data is one thing, but customer retention is another.
This part is relatively new, Tesco were the first to do it but 5 years ago the normal offers were available for everyone regardless of loyalty card. But clubcard has existed for a long time before then - there were discounts and money off to be had though, through clubcard points.
It’s more than that.
The original purpose of loyalty cards, or at least the purpose that is commonly known, is customer retention. Clubcard is a perfect example of this. To earn clubcard points, you need to spend money at Tesco, to get certain discounts, you need a clubcard. Customer data is one thing, but customer retention is another.
This part is relatively new, Tesco were the first to do it but 5 years ago the normal offers were available for everyone regardless of loyalty card. But clubcard has existed for a long time before then - there were discounts and money off to be had though, through clubcard points.