You may have seen a few TV ads from Walmart touting their latest app improvements, which includes this new little thing called "Savings Catcher." The premise is if you buy something at Walmart, then you can scan your receipt with this app on your phone (which means, you take a photo of the barcode), and Walmart will automatically price compare the items in your receipt with other local stores. If they find a store with the item for cheaper, they will refund you the difference in an e-gift card. Sounds great, right?
Maybe, if you're okay with Walmart knowing a lot about you. Let's see what's going on here...
First of all, I'd like to start with the caveat that I have not downloaded this app. I don't know if it works well, if it is designed well, or if it's easy to use. I'm speaking solely about the idea for this app as a person who has a well-rounded understanding of tech and analytics.
Let's take a big step back and acknowledge that there are many, many companies that know a lot of data about you already online. Facebook is probably the biggest information grabber, simply due to people's compulsion to share things about themselves. So what I'm about to lay out shouldn't come as too much of a surprise, but I wonder how many people are aware of the amount of data mining that retail companies do to get to know you; it's a very big business. If you don't care and want to save a couple bucks here and there, download the app, if you're curious, then let's continue.
First of all, in order for this entire app to work, people will have to create an account for it. That doesn't sound like a big deal, but this app is going to generate a lot of new accounts for Walmart from people who wouldn't ever actually shop online at walmart.com. So you would most likely have to fill out your usual information like your name, address, phone number, email, and create a password. Bare minimum, that's what they would require from you. So let's pretend, here. Walmart now knows: I'm Susie and I live in Orlando Florida.
To qualify for the price savings, you have to scan your receipt, which means you are linking yourself to your receipt. Now, I need to mention that stores will typically track a lot of this information on their own simply through credit card use. When you use a credit card in most stores, they will assign a generic ID number to you to track your purchases. However, with this app you are without-a-doubt giving away your information. This also means that you will have to give the app permission to access your camera and most likely your photos. Walmart now knows: I'm Susie, I live in Orlando, and I just bought 5 items which were milk, diapers, shampoo, carrots, and lettuce.
One week later I go back to Walmart, and let's pretend I buy 5 more things (for the sake of keeping this simple, I realize most people buy LOTS of stuff at Walmart.) I scan my receipt again, Walmart now knows: This time I bought milk, diapers, a frozen veggie pizza, coffee, and butter.
Furthermore, Walmart now also knows: I'm most likely a new mom, since I've bought diapers two weeks in a row, and I bought coffee, I am maybe a vegetarian, since I haven't bought any meat and bought a veggie pizza and vegetables the week before.
To look for the price saving ads, you will have to enter your zip code or it will pull it from the store listed on your receipt so it can search for them. Walmart now knows: I'm Susie, I live in Orlando, I bought 10 things in two weeks, and I also shop in Orlando.
Now let's pretend that it finds one item cheaper at Target, and it then refunds me 56 cents. It sends me an email. Walmart will then also know: if I opened the email, if I was on my phone, my IP address, and from there, they will be able to gather a whole lot more information about me and my internet habits. When I go to spend the money (which no doubt will be in the form of some barcode in the app or in the email they sent me) they will also be able to pinpoint the exact location of my cell phone.
If willfully giving all of this information about yourself to Walmart is okay with you, by all means sign up for it. But I wish more people realized that all they're doing is signing for up a marketing data collection system, with the "reward" of offering you a few cents here and there in price checks.
Lowe's does something similar with their "My Lowes" program, except their slightly more blunt about what they're doing. They tell you upfront that they will keep track of your purchases, and the "reward" of it is making returns easy, and sending you reminders to buy replaceable household items like air filters. Lowes can, and does, also track your purchase through your phone number. So every time they ask you for your phone number at the end of your transaction, that's what it's for. Rewards programs work in this same way.
It should be noted that this Walmart app will only compare with other store circulars, not the entire store. The other thing of note about the app, versus other price comparing apps, is that it keeps you going to Walmart. Other apps will price check all stores when you scan a barcode at the store, allowing you to then choose where to make your purchase. This scans your receipt after you've already made it, then offers money to spend right back at Walmart.
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