WHY IS IT WATCHING YOU?

 

The logic behind the original frequent flier program was that customers, given the opportunity to earn something free, would return over and over again to the same airline. It’s extremely rare that an airport is served by only a single airline, and air travel in general is an optional expense, so it is difficult for airlines to take advantage of the information gathered by their rewards programs. Targeting only specific slices of the frequent flier membership would be counterproductive, driving previously dedicated customers into the arms of competitors.

The difference between frequent flier programs and supermarket discount cards is that people need what’s sold in supermarkets to live—or at least to maintain a certain quality of life. In some markets, there is little or no competition, with only a single grocery store available. In these cases, it is very easy for a store to play favorites with the most profitable slice of the population.

The purpose of a discount card program is to minimize effort and maximize profit through meaningful targeting of product selection. A store can make more money selling a specific selection of products to the richest 20 percent of the people in your town rather than providing a general selection to everyone. The supermarket watches you for the same reason any other business does—because it is profitable to do so.