Tips on Making the Most of Reward Programs

Reward programs all started in 1896 with the S & H Green Stamps Company and consumers and businesses haven’t looked back since. Reward programs have always had the same goal – to increase loyalty and thereby increase the amount a consumer purchases with one business. It works – research shows if a consumer feels attached to a loyalty program they are likely to buy up to 20 times more with that merchant. No wonder every time you turn around someone is offering you a new points or loyalty card. With all the competition to get your business, consumers have a great chance to make the most of reward programs. Here are a few tips to get the most of all those cards in your wallet:

• Choose cards for merchants you actually use – Choose the cards where you do the most shopping. It will do you no good to collect points if you do not use the retailer. The goal is to use a card where you normally shop so rewards are an extra bonus and not the sole reason you are there.
• Stick to your budget – Remember the statistics and don’t purchase extra or buy items not in your budget to get more points. It’s not a good deal if you spend more than you should.
• Collect every point you are eligible to earn – If you forget your card many merchants will give you a couple of weeks to bring in your receipt and get the points.
• Credit card rewards – This is where you have to be really careful. Most credit cards that offer rewards charge either a higher annual fee or interest rates. If you do not pay off your balance every month and are not getting enough rewards to offset the additional annual fee then credit card points will likely not save you any money.
• More than the points – Many loyalty programs offer additional bonuses and time limited offers. Check websites and in-store flyers to make sure you are getting the most of out of your reward program.
• Use the rewards – It is not a reward if you do not use it. Check the expiry date of your rewards to make sure you use them in time. When making your reward purchase understand what the value of the item is. It does not make sense to use all your points on an item that has a low retail value. Usually trading in fewer points for smaller items gets you the biggest return. Sometimes the best deals are from small local merchants. Choose a reward to save you money in your budget – not on something you were never going to buy.
• Swap and top-up – Many points programs will allow you to trade between programs or buy points. There is a cost to do so, but check out www.points.com to see if your programs are available.