"But if they know everything you buy then that is valuable." I mean, that isn't not true, but what's the endgame there? "They'll sell it to someone." Someone who can monetize it better than they do? But that's literally their only job.
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This should be extremely obvious to folks who do B2B negotiations for e.g. software, because literally the first thing you'll get asked for if you want a price concession is "OK, can I get a contractual commit to a term and/or spending level? Happy to trade that for unit cost."
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But... loyalty plans don't come with a purchasing commitment? I mean, maybe CostCo where they charge an annual fee. But if you get a loyalty card at most places, not so much. You might spend more b/c discount, but then why not just give discounts?
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It's a commitment to provide the discount (or equivalent benefit) once someone has hit a pre-agreed spending level.
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You're right. I did until you said this
do you have examples? I'm very interested in these sort of schemes and their benefits at the moment ...Thanks. Twitter will use this to make your timeline better. UndoUndo
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What about Club Prices common at grocery stores? I haven’t been able to figure out what’s in it for the store that’s worth the sometimes quite steep discount.
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Best guess: they can charge full price to transient customers while keeping local customers captive with good prices.
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