Here is a grocery loyalty program that does something almost nobody else does.

It does not give everybody the same deal.

Most programs work like this. Scan your card, get the advertised discount. Everybody who shows a card gets the identical price, which means the program is really just a two-tier pricing system with a friendly name.

This one sorts customers by how much they actually spend, and directs the best offers to the people who spend the most.

That sounds unfair. It is also, mathematically, the correct thing to do, and understanding why explains a great deal about how businesses treat you.

It is also how a three store chain charges premium prices in a mid-sized Ohio market and keeps people coming back.

Let me show you the math.

Subscribe to keep reading

This content is free, but you must be subscribed to Penny Brief to continue reading.

Already a subscriber?Sign in.Not now