Customized grocery prices will work, like it or not

By | August 14, 2012
The fact is, there's a class of price-conscious consumers out there who are fine with selling their data in exchange for better prices. And with grocery costs rising at 10% per year (and salaries not keeping pace), this group is bound to grow.

Over in Germany, we don't have tracked individual offers yet – but we are damn close. This isn't completely new either – the mobile app is about half a year old, and the custom-cupons at the counter is about four years old now. It obviously has some benefit, otherwise it would have been discontinued by now.

1) Individual cupon offers via mobile app – although currently there is no personalization algorithm behind them. I don't expect this will be too successful unless a personalization algorithm runs in the backend.

2) Cupon which you only get when returning bottles at their store – not sure how personalized these are, but they are obviously only available to drink consumers.

3) Cupons which are printed based on products related to what you purchased – you are handed them along with the receipt. These may work well to reward returning customers and encourage them to try new products, without crossing over into the personal data mining sphere but using aggregate data instead.

/via +Jurate Stanaityte 

Supermarkets Try Customizing Prices for Shoppers
Supermarkets are mining the data from their loyalty card programs to adjust prices for and make marketing offers to individual customers.

6 thoughts on “Customized grocery prices will work, like it or not

  1. Paolo Scarabelli

    Frankly i don't care to be tracked, I'm gonna see ads anyway so better if they are about something i like.
    The problem is if your insurance company refuses to renew because they know you buy products associated to risky behavior or if you can't get hired because they know you are browsing gay websites.
    As far as i know this didn't happen yet, but it's a real possibility.

    Reply
  2. barqzr davi

    yep, i hear ya +Paul Hosking it sure throws their consumption profile on you for a loop when a 30ish single mom and i assume each other consumer profile ,, i get evil grin going at the the thought of the  analysis software trying to make sense of it, or pigeonhole either of us
     i don't live in a big city now but still collect "rewards" or whatever they call it  on someone elses club card when i do shop there
    my mobile provider of 14 yrs thinks i am a great customer even though i don't exist IRL ,,

    Reply
  3. barqzr davi

    anyone who hasn't by now established at least several credible  online personae to take proxy advantage of the dataminers by now, will be
    a) subject to inherent spam
    b) not really care about privacy

    Reply
  4. Paolo Scarabelli

    One of the best ways of tracking users are member cards which reward users with discounts or prize points.
    In Asia most retail business have some form of membership.
    I have a card from 5 different supermarkets and i often receive coupons by post, but i don't know how personalized they are.
    At the end i tend to pick the the supermarket which have the widest choice of products and quality fresh food for an average price.
    The best way to save money would be to buy different products in different supermarkets to always get the best price but it takes a considerable amount of time and a good memory and unfortunately i lack in both.

    Reply
  5. Paul Hosking

    It's all in how it is packaged and presented.  Do it the wrong way and it seems creepy and will spook customers.  But I suspect lessons have been learned.  In my local area, they are beginning to offer "digital coupons that you load up on your X card" which "makes incredible savings even better!"  That sounds great!  Except that the loyalty cards aren't really that incredible and the coupons are custom-coded creepy.  But then – that's not how many people perceive these things.  And most won't realize that the coupons are customized.

    Reply

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