I know there are different apps or websites that give you “points” for just scanning your receipts from other stores, and you can redeem points for different rewards like gift cards. What is the website gaining from this? It always seems too good to be true because I don’t know how they’re making a profit.
In: Technology
A good rule of thumb is that if a company is giving you a free product, you are the product. They’re getting information on what someone of your profile (age, gender, income, background, location) tends to purchase. Compiled with everyone else doing it, they can sell that kind of information to companies interested in creating more targeted ads to the demographic they’re interested in.
Besides, gift cards are not very expensive – especially when you have so much and detailed information about your customer that you can share
Basically, they go see the vendors offering gift cards and say: “What kind of new customers are looking for? I can select them based on if they purchasing habits and send them your gift cards”.
They Gain lots of knowledge about your habits.
What you shop, where you shop, when you shop.
With that info they can build a profile about you.
They can deduce if you have a family, likely ages of kids etc etc.
They can then sell that data so that “appropriate” ads can be directed your way.
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