2005-11-13 23:06:33 (UTC)

VALUED CUSTOMER CARDS, VIP CARDS and MORE

Just as a UPC was once thought of as "suspicious" the VALUED
CUSTOMER CARD carries with it some "paranoia" as well!

UPC CODES ARE THE MARK OF THE DEVIL?
http://www.snopes.com/business/alliance/barcode.asp

Recently I did an online review of a rather well put
together EBOOK about grocery shopping, frugal cooking and
PRICE BOOK USING (*this by the way is a lot of work, already
done for ya if you are interested!) LATER ARTICLE ABOUT
PRICE BOOKS PENDING
http://www.my-diary.org/edit/?action=viewentry&entryid=540639808
ANYWAY............. in this ebook the author calls this type
of card her "pet peeve" as she feels it decieves the buyer
and explains why..............touting getting telephone
sales calls as one of the big disadvantages of having the
cards and reveals ways in which she gets around this.

With this thought and theory in mind I decided to write my
own thoughts, concerns and review on the "VIP card."

BEFORE I START LET ME TELL YA.............
I have a keychain with a BOATLOAD of these cards and in
addition a few keychain credit cards too! I use them
FREQUENTLY AND HAVE NO PROBLEM USING THEM NOW OR IN THE NEAR
FUTURE..............  with that in mind read on....... 

WHAT IS A VIP CARD?
http://en.wikipedia.org/wiki/Loyalty_card

In marketing generally and in retailing more specifically, a
loyalty card, rewards card, points card, or club card is a
plastic card, visually similar to a credit card or debit
card, that identifies the card holder as a member in a
commercial incentives programme. In the United Kingdom it is
typically called a loyalty card, in Canada a rewards card or
a points card, and in the US either a discount card, a club
card or a rewards card. Cards typically have a barcode or
magstripe that can be easily scanned, and some are even chip
cards. Small keyring cards are often used for convenience.

A retail establishment or a retail group may issue a loyalty
card to a consumer who can then use it as a form of
identification when dealing with that retailer. By
presenting the card, the purchaser is typically entitled to
either a discount on the current purchase, or an allotment
of points that can be used for future purchases. Hence, the
card is the visible means of implementing a type of what
economists call a two-part tariff.


The card issuer requests or requires customers seeking the
issuance of a loyalty card to provide a usually minimal
amount of identifying or demographic data, such as name and
address. Application forms usually entail agreements by the
store concerning customer privacy, typically non-disclosure
(by the store) of non-aggregate data about customers. The
store - one might expect - uses aggregate data internally
(and sometimes externally) as part of its marketing research.

Where a customer has provided sufficient identifying
information, the loyalty card may also be used to access
such information to expedite verification during receipt of
cheques or dispensing of medical prescription preparations,
or for other membership privileges (e.g., access to a club
lounge in airports, using a frequent flyer card).

Critics see the lower prices and rewards as bribes to
manipulate customer loyalty and purchasing decisions, or as
a case of infrequent-spenders subsidising frequent-spenders.
Others worry about the commercial use of the personal data
collected as part of the programmes. It is also possible
that consumer purchases are tracked and analyzed toward more
efficient marketing and advertising. There also remains the
possibility that law enforcement agencies could be granted
access to the stored information during an investigation of
a customer's activities, such as in 2004, a Winn-Dixie
key-ring card was left behind in the scene of the crime,
which lead to the criminal.


CARD USE IN THE USA
In the U.S., several major grocery store chains and at least
one major pharmacy require the cards in order for customers
to receive the advertised loyalty price. These include
Kroger, Safeway (through its own name and many of its
regional chain names), Albertsons, Winn Dixie, Ingles, and
CVS/pharmacy. However, stores also allow a customer to use
the store's card if a customer does not have theirs on hand
or if the customer is new and agrees to sign up right away.
Many of the stores allow accumulation of fuel discounts.
Some have tie-ins with airline frequent flier programs, and
some agree to donate a percentage of sales to a designated
charity.

The practice is also common among book and music retailers,
from large chains to independent retailers. In some
instances, the customer purchases the card and receives a
percentage discount on all purchases for a period of time
(often one year), while in other instances, a customer
receives a one-time percentage discount upon reaching a
specified purchase level. (For example, a bookseller's
loyalty card program might provide a customer with a 10% off
coupon once the customer has spent $200.00 at the bookseller.)

In addition, office supply retailers Staples, Inc. and
Office Depot started issuing club cards in 2005.

Almost all of the major hotel chains (Best Western, Choice
Hotels, Holiday Inn, Marriott, Super 8 Motels, etc.) have
similar cards that allow guests to earn either points
(redeemable for discounts, future stays or other prizes) or
airline miles (Hilton's program allows guests to earn both
on the same stay, the only program to date that does so).
All major US Airlines also offer rewards credit cards. See
US quick comparison table

Two major petrol distributors have adopted the Exxon-Mobil
Speedpass which is not only a loyalty token, but also
contains a mechanism for authorizing electronic payment,
used by over seven million customers worldwide (in 2004).

For now, most American retailers have not implemented club
cards. In a few cases (e.g., Federated Department Stores)
this is because the retailer already issues its own credit
cards, and thus already has a direct relationship with the
consumers most likely to shop at its stores. Also, many
retailers are simply not large enough to justify the cost of
creating, promoting, and operating a club card program.

A few states have begun regulating club cards. For example,
supermarkets in the U.S. state of California are subject to
the Supermarket Club Card Disclosure Act of 1999 [3]. Some
grocery chains have dropped their loyalty card programs.
Rainbow Foods in Minnesota ended their loyalty card program
after being acquired by Roundy's, leaving Minnesota with no
major grocers that use such cards.


WHAT INFORMATION DO YOU GIVE VIP CARD COMPANIES?
that depends on the store and type of card you are signing
up for, it may be as simple as a name and phone # or may go
into a lot more depth.  Different stores require a minimal
amount of information, so fill out what is necessary and if
you choose to, you can eliminate the "non required or
optional information"   



REASONS PEOPE ARE PARANOID ABOUT VIP CARDS
FALSE ECONOMY
http://www.amadorbooks.com/nocardsh.htm
The reality of the pricing, as every shopper knows, is that
while there are some bargains to be found, more often the
"special" price is close to the price we would expect to
pay, while the regular price is exorbitant, representing not
a "sale" to the card holder but a penalty to everyone else.
 As such, claims of "savings," from the cash register
receipt ("you saved $...") to the freeway billboard,  are
blatant misrepresentations.  (The truthful receipt should say,
"You avoided a penalty of $...")  Put simply, two-tiered
pricing comes hand-in-hand with false advertising.

ANJIE NOTES:  YEP this happens all over America Folks, check
out double coupon stores retail price, check out the ARV
(average retail value) of the CONTEST PRIZES you get, check
out CAR ADS and pricing, we know this happens, when prices
are inflated (where are they not?) the "sale" price looks
betta, yep that is a fact.  This is why many people use a
PRICE BOOK when they shop (different article).  I don't shop
with a price book at present but I am smart enough to know
that with my card + my coupon I pay under 10c for a product
that it is a GOOD DEAL I don't care what the RETAIL PRICE is
that they advertise, really, I care about my bottom line
price.  I know this doesn't apply to everyone out there, but
frankly if a person wants to put $100 on a product I don't
care if I am buying it for $1.00 ya know? If they put $100
on it and don't sell that many, well I guess they will lower
the price to move the product, but if people want to pay the
$100 for it............... uh, whose fault is that?



PRIVACY CONCERNS
http://www.chron.com/content/chronicle/business/98/05/03/grocerycards.1-1.html
Loyalty programs are not new -- remember S&H Green Stamps --
but the technology that is the basis for frequent-shopper
cards has allowed retailers to learn much more about their
customers than Green Stamps ever did. 


SEE COMMENTS IN ARTICLE REVIEW HERE
http://www.my-diary.org/edit/?action=viewentry&entryid=540639808
SAVVY COUPONER CALLS LOYALTY CARD HER "PET PEEVE"


ANJIE NOTES:
I fill them out pretty thouroughly and give my 2 cents in
the comments usually, lol saying MORE COUPONS WANTED or
something like that!  YEP send me all of the email and snail
mail you want with xtra savings! I'LL TAKE IT! :)

I have never personally gotten a sales call as the result of
giving my information out on one of these cards.  HOW DO YOU
KNOW THAT? you may ask?  well I once put my phone # on my
VIP CARDS but had 2 lines! ONE of those hooked up to a FAX
MACHINE and that is the # that was listed in the phone book,
the other line, people could call willingly. I gave my REAL
WORKING LINE to those on my VIP CARDS along with my other
information.  I NEVER REC'VD A SALES CALL ON MY PRIVATE LINE
and I had this set up for YEARS!  Now I only have 1 line ,
that same line is UNLISTED in the phone book but it is the
only phone # I give out on everything.  I am on the DO NOT
CALL LIST but give my # out to the companies I want the
deals from.   AGAIN MY PHONE # was never dialed by a sales
person while I had this in effect.


BENEFITS FOR THE COMPANY OF HAVING VIP CARDS
http://www.crmbuyer.com/story/38699.html
To determine customer satisfaction, packaged goods companies
use the standard measures of case volume moved, but with the
help of loyalty program data, they also can measure such
phenomena as build in customer satisfaction, customer
response to the loyalty program, consumer attitude regarding
the brand, and sustainable sales lift.


BENEFITS TO THE CUSTOMER FOR HAVING VIP CARDS
http://www.nocards.org/savings/archive/Waco_Tribune.htm
Already, purchasing records have been used against
consumers, Albrecht said. In one case, the federal Drug
Enforcement Agency subpoenaed purchase records to see if a
suspected drug dealer had bought a lot of plastic bags,
which are used to package drugs. Another example is an
alimony dispute where a woman used her ex-husband's
purchasing records to show he had a good income because he
bought expensive wine, Albrecht said.


"While we appreciate each customer in our store, we realize
there are many customers that regularly shop with us and
enable us to stay in business," Anderson said. "Obviously,
we want to thank these customers for their support by
providing special offers and discounts."


PART 1
http://www.snopes.com/rumors/candy.htm
Last week a gentleman of middle eastern descent opened up an
account at the Hackensack Costco and purchased close to
$7,000 worth of candy.  I guess this was not particularly
alarming because many small business purchase large amounts
of items at Costco.  What became alarming this same person
(or someone using this person's card) purchased close to
$15,000 worth of addition CANDY 2 days ago at the Wayne
Costco.  The cashier became alarmed at this large purchase
of candy and more so when the person paid cash. I'm told she
was fearful and did not alert anyone in the store until
after the person left and then it was reported to authorities.

PART 2
Yesterday (October 23rd), two arabians went into the Costco
in Wayne, NJ and bought five thousand $ worth of candy. So
Costco called the cops and told them. The FBI caught one of
the arabians and the other one got away with the candy. The
arabic that got caught was illegally in the country and the
FBI thinks the candy is a way to spread the Anthrax virus. 


SOME may think the items I have listed here are not benefits
but invasion of privacy........ I don't have anything to
hide so these issues are things that I view as "GOOD" for
the economy and GOOD for the safety of our country.

ANJIE NOTES
THE COUPON SHOPPER AND VIP CARDS
YEP the cards are an advertising strategy and the results of
our expenditures shape the products, prices and promotions
that companies run.  The more information that a company
rec'ves about SUCCESSFUL marketing campaigns the MORE
campaigns they run!  FOR EXAMPLE

XYZ company runs a coupon in the sunday paper and monitors
the sales of these products in all of the grocery stores
around the united states.  WOOOOOO HOOOOOOO they sold lots
of this product and got it into our homes to TRY and SPREAD
THE WORD ABOUT.  OK the grocery store is out of that
product, they have to order MORE......... what they order is
of course monitored too.

SALLY: buys all of this product at a store (NO CARD) and she
buys lots of it.  She loves those b1g1f coupons and
stockpiles them.  XYZ company has no idea Sally bought these
they just know the GROCERY STORE SOLD THEM,  KUDOS TO THE
GROCERY STORE, lets send them some GIFTS for marketing our
product so well.

JANE: buys all of this product at a store (CARD IN HAND) and
she buys lots of it.  She loves those b1g1f coupons and
stockpiles them.  XYZ company knows that JANE LOVES THEIR
PRODUCT cuz she is a VIP CARD CARRIER!  KUDOS TO JANE for
buying our product , she loves us.........lets send her the
next promo we have on this , or products to test, or some
FREE COUPONS

BETTY: buys all of this product at a store (CARD IN HAND)
and she buys lots of it.  She loves those b1g1f coupons and
stockpiles them.  ABC company is a company she has bought
from before and her card says she likes the XYZ product and
bought lots of it.  ABC company says........ OMG we need to
offer BETTY some incentive to be our customer again, she is
buying XYZ and we thought she liked ABC , what did ABC do
differently in their promos last week, hmmmm they offered a
B1G1F coupon, MAYBE WE SHOULD DO THAT


AMY: RUNS INTO THE THE STORE , NO CARD, NO COUPONS, WHAT IS
SHE THINKING?  GO HOME AMY!


BILL:  Bill loves sports, the local sports arena is having a
promotion, BUY XYZ product and save the UPCS to get into the
 MONDAY NIGHT GAME,  bill goes to the store & buys the
product, GREAT NIGHT OUT, KUDOS BILL!  BUT WAIT, that
company is also having a promo at the store down the street,
 they are having a contest for EVERYONE THAT BUYS SO MANY
XYZ PRODUCT during a certain time period we will also give
them that JERSEY that Bill has been wanting.  BILL WILL BUY
MORE OF THE PRODUCT THAN HE NORMALLY WOULD which would cost
him MORE out of pocket than down the street BUT he only
spends $5 more and gets his $30 jersey.  HMMMM which should
he do?


As you can see, I see the benefits FAR OUTWEIGHING THE RISKS
of using the VIP in my case! I have won things, gotten
coupons, tried new products and MORE with my VIP card and it
didn't cost me a dime more.  YOU BE THE JUDGE!  While I
respect everyones opinion on this subject, I for one will
keep playing the marketing game and who cares if "big
brother knows that I like green beans and can get them for
pennies, anyway?"


POSSIBLE FUTURE BENEFIT TO CONSUMERS
http://www.priorartdatabase.com/IPCOM/000004469/
Grocery Customer Aid
The present invention is a method and apparatus that takes a
customer grocer card and returns, on a monitor in the
grocery store, a list of items that are on sale that the
customer had purchased in the past.

COMPUTERIZED CARTS that help you shop w/ your card
http://www.livescience.com/technology/ap_050503_shop.html
CHICAGO (AP) _ New supermarket carts equipped with touch
screens will guide you to the tomatoes or toothpicks, let
you order deli meat without standing in line and keep a
running tally of your purchases. 

FUTURE OF LOYALTY MARKETING
http://www.thewisemarketer.com/members/welcome.asp
Loyalty marketing won't die out. On the contrary, it will
become far more exciting and challenging, and the market
place of tomorrow will separate the customer loyalty wheat
from the chaff. And it will largely come down to a better
understanding of consumer behaviour patterns than the
competition has.

NOW on the other hand here is a marketing ploy by companies
that I didn't like the sound of AT ALL....... this falls
right on up there with SPYWARE AND SCUMWARE if you ask
me.....SPYCHIPS
http://www.snopes.com/inboxer/outrage/rfid.asp
luckily if you read the article I have referenced you will
find that companies are CHANGING THEIR MINDS on this one!