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Data protection for Payback bonus systems and loyalty points

The Germans are a people of savers and are always happy to have discounts, bonuses and bonuses.

Large retail chains take advantage of this feature, so questions like, “Do you collect loyalty points?” or “Do you have a payback card?” at the checkout for everyday life in many supermarkets. But what is behind all these bonus systems?

Because nobody really has something to give away, right?

and thats the way it is. Because whether it is loyalty points, payback cards or other bonus systems, they all have in common that they are an important marketing tool for retail companies that serve to retain customers and increase sales.

The supposed savings the consumer thinks he will get in the end usually vanishes if he does the exact calculation.

Data protection for Payback bonus systems and loyalty points

Topic Overview

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Firstly, almost every one of us has more in the basket at the end of a purchase than previously planned, and if you have the choice between a market in which you already collect a lot of points and one without, the decision is often made in the first place.

The core goals of “customer loyalty” and “sales increase” have already been achieved. But these goals are far from the only ones that retailers are pursuing. Because at the latest through the big tech groups we have learned that our data can be used to make significantly more, and above all, more sustainable money.

We looked at what data is actually collected when using bonus systems, how much can be saved, and what is behind the valuable bonuses.

Data protection for Payback bonus systems and loyalty points

The Germans are a people of savers and are always happy to have discounts, bonuses and bonuses.

Large retail chains take advantage of this feature, so questions like, “Do you collect loyalty points?” or “Do you have a payback card?” at the checkout for everyday life in many supermarkets. But what is behind all these bonus systems?

Because nobody really has something to give away, right?

and thats the way it is. Because whether it is loyalty points, payback cards or other bonus systems, they all have in common that they are an important marketing tool for retail companies that serve to retain customers and increase sales.

The supposed savings the consumer thinks he will get in the end usually vanishes if he does the exact calculation.

Data protection for Payback bonus systems and loyalty points

Topic Overview

Anzeige

Firstly, almost every one of us has more in the basket at the end of a purchase than previously planned, and if you have the choice between a market in which you already collect a lot of points and one without, the decision is often made in the first place.

The core goals of “customer loyalty” and “sales increase” have already been achieved. But these goals are far from the only ones that retailers are pursuing. Because at the latest through the big tech groups we have learned that our data can be used to make significantly more, and above all, more sustainable money.

We looked at what data is actually collected when using bonus systems, how much can be saved, and what is behind the valuable bonuses.

1. What data is collected?

1. What data is collected?

On the one hand, the basic data is of course part of the data collection, such as:

  • Surname
  • address
  • Date of birth

And the name usually also results in whether it is a woman or a man. As soon as you participate in such a bonus program, this data may also be passed on for advertising purposes without your consent. You usually don’t know where exactly this data is forwarded, where it is stored and for how long.

However, Payback alone has more than 40 stationary partners and over 600 online partners. And your data is buzzing everywhere.

Now it is of course enough for the data collectors not only to have their basic data, and to know that you are participating in a bonus program, so that we can perhaps send you advertising. Because every time you have made a purchase and pull out your bonus card at checkout, significantly more data is created that is linked to your person.

This includes:

  • What did you buy?
  • When did you shop?
  • Where did you shop?
  • How did you pay

This data, together with your personal data, gives a fairly precise picture of a person, their buying behavior, and in some cases even the current life situation, and can also be saved permanently by the operator of the bonus system and their partners. So the longer you use these bonus systems, the more precisely you can create a profile and also recognize patterns.

In the past, even affiliated partners tried to predict life events of a person with astonishing precision. For example, an impending pregnancy of a customer was successfully predicted based on the patterns in the buying behavior.

Even though these analysis services have never seen the person in person.

We give all this data completely voluntarily in order to save a few euros here and there or to get a coveted premium. Whether that fits in with the general outrage especially in Europe about abuse of data protection can be asked by everyone.

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On the one hand, the basic data is of course part of the data collection, such as:

  • Surname
  • address
  • Date of birth

And the name usually also results in whether it is a woman or a man. As soon as you participate in such a bonus program, this data may also be passed on for advertising purposes without your consent. You usually don’t know where exactly this data is forwarded, where it is stored and for how long.

However, Payback alone has more than 40 stationary partners and over 600 online partners. And your data is buzzing everywhere.

Now it is of course enough for the data collectors not only to have their basic data, and to know that you are participating in a bonus program, so that we can perhaps send you advertising. Because every time you have made a purchase and pull out your bonus card at checkout, significantly more data is created that is linked to your person.

This includes:

  • What did you buy?
  • When did you shop?
  • Where did you shop?
  • How did you pay

This data, together with your personal data, gives a fairly precise picture of a person, their buying behavior, and in some cases even the current life situation, and can also be saved permanently by the operator of the bonus system and their partners. So the longer you use these bonus systems, the more precisely you can create a profile and also recognize patterns.

Advertisement

In the past, even affiliated partners tried to predict life events of a person with astonishing precision. For example, an impending pregnancy of a customer was successfully predicted based on the patterns in the buying behavior.

Even though these analysis services have never seen the person in person.

We give all this data completely voluntarily in order to save a few euros here and there or to get a coveted premium. Whether that fits in with the general outrage especially in Europe about abuse of data protection can be asked by everyone.

2. How much can you save?

2. How much can you save?

For the amount of data we disclose about us, you can expect a little something, right?

So let’s take a look at what we can actually get out …

If you only use the Payback card for your purchases and hope to collect enough points to receive a coveted reward or get a few euros credited, you will probably be disappointed. Because to get only 1 euro discount on a purchase you have to make for 200 euro sales. This corresponds to exactly 100 payback points.

In this way, the system will probably only really pay off for very few.

If you really want to save, you are forced to deal more intensively with the bonus system. So there are more often promotions from retailers where you can collect 1,000 Payback Points, for example, if you shop there for at least 100 euros.

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You can usually find out where such promotions are currently running on the official Payback website.

What you shouldn’t forget, however, is the time you have to spend to stay on the ball and get a reasonably attractive discount. The hunt for discounts is almost a hobby in which you can invest some effort.

As already mentioned, nobody has anything to give away, so you are always encouraged to go to certain markets in the hunt for bonus points and make sales for sum X.

And as a rule, you buy things that were not actually planned. This shows clearly how to use our reward system skillfully to not only generate more sales, but also to control some of our entire shopping behavior.

The few percentage points of discount that are then paid out to you as a customer are, on the one hand, a worthwhile investment by the companies, and in some cases they are already priced in.

For the amount of data we disclose about us, you can expect a little something, right?

So let’s take a look at what we can actually get out …

If you only use the Payback card for your purchases and hope to collect enough points to receive a coveted reward or get a few euros credited, you will probably be disappointed. Because to get only 1 euro discount on a purchase you have to make for 200 euro sales. This corresponds to exactly 100 payback points.

In this way, the system will probably only really pay off for very few.

If you really want to save, you are forced to deal more intensively with the bonus system. So there are more often promotions from retailers where you can collect 1,000 Payback Points, for example, if you shop there for at least 100 euros.

Advertisement

You can usually find out where such promotions are currently running on the official Payback website.

What you shouldn’t forget, however, is the time you have to spend to stay on the ball and get a reasonably attractive discount. The hunt for discounts is almost a hobby in which you can invest some effort.

As already mentioned, nobody has anything to give away, so you are always encouraged to go to certain markets in the hunt for bonus points and make sales for sum X.

And as a rule, you buy things that were not actually planned. This shows clearly how to use our reward system skillfully to not only generate more sales, but also to control some of our entire shopping behavior.

The few percentage points of discount that are then paid out to you as a customer are, on the one hand, a worthwhile investment by the companies, and in some cases they are already priced in.

3. What is the reward?

3. What is the reward?

In some markets, retailers also like to work with loyalty points where your data is not the focus of interest, but very much the increase in sales.

There are attractive prizes such as coffee service, knife sets or a chic glass carafe and much more. In order to receive such a bonus, you not only have to collect plenty of loyalty points, but also a lot of them. And in order to maintain this, sales have to be achieved in the respective market. The more sales, the more points you get.

And here our hunting instinct comes through again, and one or the other part is bought more than what was planned in order to finally get the points required for the bonus. With many awards, the points collected are often not even sufficient, and you still have to make an additional payment to compensate for the equivalent of the premium.

Consumer advocates have found even more astonishing things in random samples that retailers and premium makers don’t like. Rewards are offered that look deceptively similar to expensive branded products, but unfortunately they are not.

In some cases, low-quality copies of expensive products were made especially for bonus systems. However, you will never find these products in regular shops.

In order to determine the difference, you have to look very closely, because the devil is in the details. And so product names are changed only minimally, so that it is not noticeable at first, or model variations that are not available in retail from the known product are displayed.

Here, too, it shows that nobody has anything to give away, but is invested at best to generate a return.

Advertisement

In some markets, retailers also like to work with loyalty points where your data is not the focus of interest, but very much the increase in sales.

There are attractive prizes such as coffee service, knife sets or a chic glass carafe and much more. In order to receive such a bonus, you not only have to collect plenty of loyalty points, but also a lot of them. And in order to maintain this, sales have to be achieved in the respective market. The more sales, the more points you get.

And here our hunting instinct comes through again, and one or the other part is bought more than what was planned in order to finally get the points required for the bonus. With many awards, the points collected are often not even sufficient, and you still have to make an additional payment to compensate for the equivalent of the premium.

Consumer advocates have found even more astonishing things in random samples that retailers and premium makers don’t like. Rewards are offered that look deceptively similar to expensive branded products, but unfortunately they are not.

Advertisement

In some cases, low-quality copies of expensive products were made especially for bonus systems. However, you will never find these products in regular shops.

In order to determine the difference, you have to look very closely, because the devil is in the details. And so product names are changed only minimally, so that it is not noticeable at first, or model variations that are not available in retail from the known product are displayed.

Here, too, it shows that nobody has anything to give away, but is invested at best to generate a return.

4. Conclusion

4. Conclusion

In our view, most Payback bonus systems, or loyalty points, are not really worth it for the consumer, because in relation to the discount or the coveted premium, you have to achieve a disproportionate amount of time and a lot of sales.

In terms of data protection, brick-and-mortar retail, especially with payback cards, has achieved what has long been common practice in online retail. Namely, to draw a fairly accurate and meaningful picture of a customer over a longer period of time, in order to be able to make more and more suitable offers and increase sales. Unfortunately, many are only too happy to provide their data to hunt for points without questioning the system.

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If you don’t want to live completely behind the moon, you won’t really be able to avoid revealing some data about yourself. This is done via Google search, the Netflix & Amazon account, and many other services that we use every day.

It is important to simply be aware of the value of your own data, and what is often behind the beautiful, colorful facade, and of course whether what I receive is in reasonable proportion to what I disclose.

There can actually be no one-size-fits-all answer, which is why everyone has to decide for themselves.

In our view, most Payback bonus systems, or loyalty points, are not really worth it for the consumer, because in relation to the discount or the coveted premium, you have to achieve a disproportionate amount of time and a lot of sales.

In terms of data protection, brick-and-mortar retail, especially with payback cards, has achieved what has long been common practice in online retail. Namely, to draw a fairly accurate and meaningful picture of a customer over a longer period of time, in order to be able to make more and more suitable offers and increase sales. Unfortunately, many are only too happy to provide their data to hunt for points without questioning the system.

Anzeige

If you don’t want to live completely behind the moon, you won’t really be able to avoid revealing some data about yourself. This is done via Google search, the Netflix & Amazon account, and many other services that we use every day.

It is important to simply be aware of the value of your own data, and what is often behind the beautiful, colorful facade, and of course whether what I receive is in reasonable proportion to what I disclose.

There can actually be no one-size-fits-all answer, which is why everyone has to decide for themselves.

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About the author:

Michael Suhr
Michael SuhrWebdesigner / Economist
After 20 years in logistics management, I have been working as a freelance web designer and office trainer since the beginning of 2015. Incidentally, I give tips and tricks for more digital skills in my blog as time permits.

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About the author:

Michael Suhr
Michael SuhrWebdesigner / Economist
After 20 years in logistics management, I have been working as a freelance web designer and office trainer since the beginning of 2015. Incidentally, I give tips and tricks for more digital skills in my blog as time permits.

Search by category:

So lohnen sich die Amazon Visakarten

2020-03-28T08:46:30+01:00By |Categories: Data Protection, Internet, Finance & Shopping|Tags: |