In the last decade grocery discount cards have become increasingly popular, with good reason. Bonus, or value, cards are a great way for grocery stores to track information and set business strategies. There are many pros and cons associated with grocery discount cards.
The pros associated with grocery cards differ for consumer and grocery store. Here are a few of the top reasons why discount cards are beneficial to both parties:
• Pros for grocery stores
The pros for grocery stores probably significantly outweigh the ones for consumers. Grocery stores can use discount cards for many purposes to increase marketability, sales and ultimately, profitability.
Discount cards enable stores to glean information about customer buying habits. In addition they can track purchase histories, analyze trends, evaluate products, set prices, and put marketing and advertising plans in motion.
• Pros for consumers
The first benefit most people consider is savings on grocery items. Consumers that know their prices well can easily determine which bonus card savings are legit and which ones are inflated in price to give the impression of perceived savings.
For those that intimately know the market price value of the items they buy, consumers can strategically buy items that go on sale and for further savings, use coupons to increase the amount of money saved.
Targeted coupons are another benefit to grocery discount cards. Those coupons which are printed with register receipts are not coincidence, most of the time they are customized towards your buying habits and preferences in an effort to entice you to buy. If the products are ones you'd buy anyway, this advantage of discount cards is helpful in reducing your grocery bill.
In addition to coupons, many grocery stores also offer targeted promotional mailings which may include additional coupons or opportunities to save on the items you like to buy.
• Cons for grocery stores
There really aren't many, if any cons for grocery stores to use discount cards. Unless the amount of research and effort that goes into developing information systems to analyze and track consumer information is considered. While this is a costly upfront expense, when done right the return of investment far outweighs the expense and effort.
• Cons for consumers
The biggest drawback of grocery discount cards for consumers is privacy issues. With every application filled out or scan done, the consumer offers up more information about themselves. Some of the grocery store applications are pretty detailed and a lot of personal information is required, while others only ask for minimal information.
In addition to the information shared with the grocery store, some consumers complain of a "big brother" feeling as they shop. These people may find it creepy to know that every purchase they make and price paid is carefully tracked and analyzed. When certain products are purchased, they may feel uncomfortable knowing this purchase is linked with their name and perhaps even shared with other companies.
• How to maximize pros and reduce cons as a consumer
While there are always tradeoffs when accepting any kind of discount savings card agreement, there are a few things you can do to maximize the benefits so they outweigh the drawbacks.
1. Always read privacy policies. Know what information is being collected, why it's being collected and who it's going to be shared with. What you find in the fine print may not be all that appealing once you know where your information is going. In other cases it may be perfectly acceptable.
2. Know your prices. In order to really maximize the advantages and minimize the tradeoffs, it's a good idea to know the prices of things you regularly buy. This way you can quickly tell whether or not prices have been inflated and then reduced as an attempt to look as if an item is on sale.
There are many pros and cons with grocery discount cards. The best way to maximize the advantages is to be educated and know what you're signing up for when you join any grocery store's program.