WHO INVENTED IT AND WHY?

 

The concept was inspired by frequent flier programs, the first of which was launched by Texas International Airlines in 1979. Other airlines soon followed, and now it’s difficult to imagine air travel without frequent flier programs.

It’s tough to say what grocery chain introduced the first discount card, but by the mid-nineties they were ubiquitous and had expanded well beyond the supermarket. Gas stations, drug stores, record shops, and pet supply chains all launched similar programs.

This was done because retailers wanted to know more about you. Before discount card programs existed, the only way your local supermarket had of communicating with you was to simply hurl advertising and hope it stuck. They could track the general behavior of their customers, but they couldn’t drill down into that data. They knew people bought a lot of steak and a lot of Cool Whip, but was it the same people buying both? An ad selling steak and Cool Whip together could really entice people, or it could just gross everyone out.

Discount card programs give retailers specific, individual data about the shopping habits of their customers. Shopper profiles and correlations between products can be built based on purchasing history. Before the discount card programs, supermarkets knew about us as a group. Now they know about you as an individual.