How supermarkets get your data – and what they do with it

From The Guardian UK:  http://www.guardian.co.uk/money/2013/jun/08/supermarkets-get-your-data

It doesn’t matter if you are part of a loyalty scheme, pay by card or even cash, ‘Big Brother’ supermarkets know your every move

Donna Ferguson
The Guardian, Friday 7 June 2013

We all know supermarkets use information about our shopping habits to target us with personalised vouchers and offers – but how would you feel about sitting down to watch a movie and being confronted with adverts based on what was in your shopping trolley a few hours earlier?

Or what would you think about Tesco using its Clubcard database to check what you are eating, and possibly offering vouchers for salad and fruit if your basket is usually groaning with unhealthy items?

These are just two of the ways the supermarket giants are planning to make use of the data they gather on us.

For every loyalty point or coupon that Sainsbury’s, Tesco and the like dish out, they gobble up a huge amount of information about our shopping habits. We are all familiar with targeted offers linked to loyalty cards, but you might be surprised at the amount of data the big retailers collect on all of their shoppers – and even potential customers – and what they do with it.

If you have opted out of taking out a loyalty card because you don’t want “Big Brother in your shopping basket”, then too bad, because the supermarkets also track debit and credit card payment data and till receipts – so someone, somewhere, knows about that bottle of wine you bought at 12.28pm on Tuesday, and that you recently switched your brand of athlete’s foot cream.

If you have a loyalty card or shop online, the supermarkets will build up a demographic profile of you, and collect data about how loyal you are, what you buy and how much you spend, says Guy Montague-Jones of The Grocer.

They can then change what you see when you log in to make it easier to find the products their data suggests you will buy, and in-store they will use their data to make decisions about what they sell.

For example, Sainsbury’s discovered that a cereal brand called Grape-Nuts was worth stocking – despite weak sales – because the shoppers who bought it were extremely loyal to Sainsbury’s and often big spenders.

Continue reading at:  http://www.guardian.co.uk/money/2013/jun/08/supermarkets-get-your-data

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