01.Introduction

Just how exactly much do you get out of a typical rewards program? Not nearly as much as the companies behind them do. A CHOICE evaluation of the various rewards programs available found that most of these programs offer such poor rewards that you generally save less than a dollar per $100 spent.

In return, retailers gain valuable information about your shopping habits. Sophisticated databases store information on the specific products you buy, which could show if you smoke, prefer organic produce, choose low-cholesterol margarine or have a preference for certain snack foods. This can then be used for targeted marketing.