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Benefits and Drawbacks of New Store Cards and Apps

Over the last decade, store loyalty cards have fallen out of favour – mostly due to falling rewards values and the desire to shop around cheaply. But now they’re back and they’re using our phones to help us shop.

 

Benefits of supermarket reward apps

Great discounts and offers

Old habits die hard – the original supermarket and store loyalty cards typically worked by giving points on every purchase which would were then converted to store vouchers. The points have gone; in their place are now personalised discounts. Such discounts are automatic for those who use the app so long as they remember to swipe at the till – easier with your phone than carrying around paper vouchers.

 

Integration with delivery and scan & go services

Online delivery was a thing before COVID, but it proliferated during 2020 and now more people are relying on them. The great thing about these reward apps is that when you’re doing an online delivery order, the website looks at your shopping history and recommends items to make sure you don’t miss anything.

 

Gamification

You must admit there’s a certain fun element to these apps. Some have a counter to the next rewards level (spend another £5 to get a £10 gift card) while some have scratch cards on the app which offer daily or weekly discounts, and one big chain offers “star” products – better rewards into the cash pot towards vouchers when you buy them. Making it fun is part of the appeal.

 

Drawbacks of supermarket reward apps

Will you spend money you don’t have?

Some use FOMO (a fear of missing out) with daily notifications of short-term offers and time limits on accumulating rewards for the voucher. Students especially might spend money they don’t have to ensure they don’t lose out on rewards they’re close to getting. There is a real risk of going over budget to avoid “losing.”

 

Buying stuff you don’t normally buy

No matter how much something is discounted, it’s only a bargain if you were going to buy it anyway. If you weren’t, you’ve spent money you didn’t need to spend just for the sake of getting a discount. Much like the old two-for-one, people spend more expecting to use something, but then never do. Think carefully about whether you’ll actually use the extra thing you’re buying.

 

All the apps, everywhere

Everyone wants you to download their apps these days. While they are certainly handy, there is seemingly no end of apps for everything. That can impact your device’s life and performance, taking up valuable space on a smartphone. It’s even worse if you only use the app once or twice and don’t get the full benefit. So, think carefully about whether it’s worth it.