Let me tell you something that’ll make you look at your “loyalty perks” apps and programs a lot differently. 

You think you’re getting a deal along with points, rewards, a freebie here and there. But what you’re really signing up for is a machine that’s collecting, analyzing and monetizing you.

I studied a new report from Vanderbilt University called The Loyalty Trap so you don’t have to. Here’s how it all works in three powerful shady stages.

🧩 Stage 1: Data capture

The moment you hand over your name, phone number or email to a loyalty program, the profile starts. From there, every single purchase, store visit, location ping and even what you almost bought gets logged and sold to who knows who.

McDonald’s has over 150 million loyalty users worldwide, feeding it a constant stream of data of what you order, how often and where.

Nordstrom’s 13+ million Nordy Club members spend four times more than nonmembers. Nordstrom tracks everything from your shoe size to what you browsed but didn’t buy.

Grubhub has 24.6 million monthly users. They’re tracking what you crave, when you eat and from where.

You’re not just earning points. You’re building your own dossier.

📊 Stage 2: Behavioral modeling

Once they’ve got the data, it goes into the algorithm blender. Not only are these companies watching what you do, they’re predicting what you’ll do next.

Will a 10% discount bring you back on Thursday night? Should they suggest the more expensive wine this time? They already know.

This is the moment where loyalty stops being friendly and starts becoming predictive. You’re being shaped as you shop.

💸 Stage 3: Monetization

Here’s the real kick in the pants. Your data gets sold or shared. Not only inside the brand, but with advertisers, partner companies (whoever they are) and data brokers. Even if you delete the app, your data trail stays alive. 

This isn’t about paranoia, it’s about awareness. Loyalty programs aren’t evil. But they are smart. Scary smart.

So next time you tap your app for that “free” coffee, remember it came with a price you never agreed to out loud.

👉 Your smart move

This is exactly why you need the privacy tool called Incogni. It works on your behalf to track down and force data brokers (the ones who buy and sell your loyalty program data) to delete what they’ve collected about you. 

You can’t possibly chase down every company that’s built a profile on your shopping, eating or browsing habits. But Incogni can. Think of this as locking the front door of your digital life, finally.

Full disclosure: Incogni has been a sponsor of my national radio show for years. I was a customer before that even happened. I negotiated a great deal so you get 60% off using promo code KIM60. By the way, if you do sign up, I get no residuals or kickbacks. I know Incogni works, and I think you’ll love having your privacy back, too.

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