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+--- Thread: Gold [Shopping Knowledge]: How fidelity cards work (/Thread-Gold-Shopping-Knowledge-How-fidelity-cards-work)
[Shopping Knowledge]: How fidelity cards work - miso - 07-12-2020
I've recently been watching a few documentaries about how businesses operate & i just find it interesting, however, they explain stuff like the watchers are brainlets, so here's a quick explanation of the fidelity cards
With a fidelity card, you can accumulate points after buying products from the associated shop & after havinga certain number of points, the customer will be able to request "gifts" or reductions for example, this can help the customer, however, the business can "take the risk" to let the customer spend less money or get something for free.
The reason that they take this risk is because they've already gain enough money to cover the gift/reduction you took, meaning the business will still lose a few $, but will still be in profit. It is also because of the marketing around fidelity cards, they will constantly ask you if you have the fidelity card of the shop & if not, asks you if you want one, proceeding to say that you will get priviledges that customers without it don't have, such as gifts or reductions.
Businesses also take the risk of giving gifts & reductions to make their members come back to purchase more things from their shop, it is basically a loop.
Businesses can also sell the information you've entered on the signing up of a fidelity card, however, i don't think much businesses do it since it is quite a scummy action to their members
TL;DR: Businesses are taking a risk with fidelity cards because it allows them to be more present in their customers lives, if you have a fidelity card for a shop, why would you go to their competitors if you do not get anything from them?. The customer will also appreciate the shop more due to the perks they can get, making sure they comeback to get more of these perks
idk if i will do more of these, it is just a simple explanation since i feel like some people don't really explain it correctly, that helps me with my business classwork too so thats cool ig
RE: [Shopping Knowledge]: How fidelity cards work - mothered - 07-13-2020
Interesting read and very well explained.
I've never really delved Into the Ins and outs of Fidelity/rewards cards, so this Is certainly Informative.