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Why do supermarkets have loyalty cards?
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this post was submitted on 08 Aug 2026
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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.