4 Reasons to Pay with Cash


Have you ever wondered how in the heck you receive coupons in the mail that are marketing you for the very items and brands that you always purchase?  It’s sometimes freaky that “Big Brother” knows what type of toilet paper you use or the kind of candy you love to devour before bedtime.

The marketing class at Globe University in Minneapolis recently had database marketing guru, Cathie Tidball, give some insight in class on segmented and database marketing.  Cathie is an account supervisor at Infinity Direct, which is an advertising agency located in Minneapolis.  She specializes in data management for companies such as ShopNBC, Sports Authority and Polaris – she knows her data and how to use it to benefit her clients.

Cathie taught the class four benefits why a client would use database marketing:

  1. Improve Profitability – Target marketing efforts and allocate resources in a way that improves efficiency and increases profit.
  2. Increase Sales – The primary goal of database marketing is usually to increase sales and take advantage of new market opportunities.
  3. Improve Communications – Communicate with your customers when they want you to, how they want you to and with relevant information.
  4. Improve Product Development – Communicate with your customers on a regular basis to gather information about the type of improvements they would like to see in your products or programs.

Now we know how a company markets to the consumer, but how do these companies get our information in the first place?

Answer: Your credit card

Every time you use your credit card, your information regarding that purchase is stored and used to market to you.  Other ways that companies capture your information are:

  • Orders/Purchases
  • Email requests for information
  • Warranty Cards
  • Inquires

If you never want to receive a coupon for your favorite toilet paper or those sinful chocolate candies – pay with cash! There are four benefits of paying with cash (other than those toilet paper coupons):

  1. Buy things you really need – It’s a little more painful to spend cash on things you don’t really need.
  2. Stop Impulse Spending – Bad day? Using cash stops it from becoming a worse day with debt.
  3. Avoid Paying Interest – Interest is just a hole that much harder to get out of!
  4. Ownership vs. Liability – You pay cash, you own it vs. paying for months or years with credit.

The marketing class received some great insight from Cathie.  Whether you are the company or the consumer or just trying to change your spending habits, this is great insight.

Tara Ellis, a student in the class said, “I never understood how companies knew what coupons to mail me for the products I use – now I know and it’s amazing!”

To learn more about a marketing Degree at Globe University in Minneapolis, call 1.877.303.6060.

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