Loyalty Programs About to be Dragged into the New Millenium

Loyalty Programs About to be Dragged into the New Millenium
Loyalty Programs About to be Dragged into the New Millenium
Loyalty Programs About to be Dragged into the New Millenium economist.com

Look in your wallet or pocketbook, or wherever you keep your trove of internet passwords. We are all members of loyalty programs. Lots of loyalty programs. The average US household belongs to 28 loyalty programs, and in an obvious marker of our nation’s love affair with getting free stuff, the US is home to 3.8 billion memberships in total.

In a very interesting article in the online edition of The Economist explains that  “Mobile technology is revamping loyalty schemes” (this article originally appeared in the Business section of the print edition under the headline "Forsake all others") and that this may be the what drags a lot of firms into the new digital reality of data mining:

As Starbucks has shown, many advances in the loyalty industry are driven by mobile technology. For a start, it allows firms to use location information to send well-targeted, real-time offers. And storing scores of cards in an e-wallet, rather than having to wedge them into a purse, encourages shoppers to use them. A quarter of people who abandoned schemes did so because they did not offer a smartphone app, according to Colloquy. Smartphones are also increasing the number of ways in which customers can garner rewards. Some restaurants, for example, offer points for those posting photos of their meals on Instagram, or for “checking in” on Facebook. The only limit, it seems, will be customers’ desire to protect privacy.

Will people be willing to accept the implicit Faustian deal and trade their data for customer rewards?

Read the source article at economist.com

 


The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex instruments include forex, stock indexes, commodity futures, and economic events.

Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the limited-risk nature of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.