Rewards and Loyalty programs: are they worth your time and effort?
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With so many retail stores, supermarkets, and other businesses trying to keep customers and give them more 'value' every time they shop, the rise of loyalty or rewards programs has been steady over the past few years.
Many of us probably even have a wallet full of them! (Okay, we're guilty of this…)
However, there is one question that has been circling our heads for quite some time now – is signing up for everything really going to help us save money in the long run?
Some people will say that going to different stores to take advantage of different sales is well worth the time, but more and more evidence suggests that this is probably not the best way to do things if you're looking to cut back a bit on your expenses.
Australians have many loyalty program options, but are they worth the effort? Credit: Creative Commons.
Adam Posner, CEO and founder of The Point of Loyalty, said that consumers shouldn't try to take advantage of every offer they see. Instead, they should focus on how to get the most out of one main loyalty program.
"Consumers get the most benefit from programs when they consolidate their spending", he said in an interview with news.com.au. "So if they spend consistently with a brand that gives them the best service, quality and pricing, they will get more rewards."
"If you’re always shopping around, you won’t get your rewards. You’ve got to be more loyal to the business to get more rewards," he added.
Mr Posner went on to say that people who are always looking for one-time deals typically end up saving less money in the long run.
"They don’t tend to get too many rewards if they’re spending a little bit everywhere because the rewards don’t accumulate on the same program," he said.
"You’ve got to keep your spending at one brand or business to get better rewards quicker."
Even if it means shelling out a bit more for an item that could be purchased at a cheaper price somewhere else, the expert argued that the investment would eventually pay off in the future.
Scan or link your Flybuys card at a Coles Group store to earn points on every purchase. Credit: news.com.au.
If you are finding it hard to believe Mr Posner's words, just take a look at the case of this one mum from Canberra who managed to fund her holiday getaway using only her FlyBuys savings.
In an interview with news.com.au, mum-of-two Anna Brown revealed that her loyal and consistent use of her FlyBuys membership had allowed her to treat herself to luxuries she otherwise couldn't have afforded.
By using her saved-up points and taking advantage of an Adrenaline sale, she and her partner did the Sydney Harbour Bridge climb and a hot-air balloon ride over Canberra for free.
She has also earned a reputation as something of a legend among Kmart mums when she previously shared that she was able to furnish her entire nursery room without having to pay anything.
If you're wondering how she managed to accomplish all of this, Mrs Brown claimed that her greatest strength has been paying close attention to "stacking" her points, which is a strategy in which multiple offers are used in conjunction with one another.
For example, she made sure to meet the spending requirements for four-week offers and spent money on things that gave her bonus points during that time.
The mum also told other members to resist the urge to spend their points right away and instead "stash" them for bigger purchases.
To make the most of their FlyBuys memberships, she also urged fellow shoppers to spend a little more time planning their trip to the store before leaving home.
"When I do my shopping list for the four weeks coming up, I number each week and make sure I am meeting $50 for each week, and slot in some extra bonus points along the weeks," she said.
Mrs Brown has been able to save more than $1,000 over the last year by using the app to keep close track of her points.
Everyday Rewards is the loyalty programme run by the Woolworths Group. Credit: Shutterstock.
Of course, Mr Posner's advice also goes out to Everyday Rewards members!
Recently, James Wragg from Queensland revealed that he was able to get a brand-new television by using his accumulated points, saving him more than $500 on the purchase!
The loyal customer attributed his success to taking advantage of special offers whenever he has the spare money to do so. "Getting the best out of the membership is spending what you can on offers that you can afford to spend on. Like spending $50 for 5000 points," he said.
Besides that, he also emphasised the importance of living within your means and advised against blowing your budget on a promotion if it wasn't financially viable.
Every week, Mr Wragg consistently saved about 1500 points, which is equal to about $5.50.
Aside from Mr Posner's advice of staying "loyal" to a loyalty or rewards program, there are also other reasons why you shouldn't sign up for any rewards programme the first chance you get.
According to the experts over at CHOICE, people should be careful about joining loyalty programs because they don't know how retailers will use and share their personal information.
"Loyalty programs aren’t free," consumer data advocate Kate Bower said. "The true cost of these programs is your personal data which can be used for manipulative practices and even personalised pricing."
"People might not realise that supermarket rewards programs share data and insights with their insurance businesses, while others could be sharing your personal information with data brokers. This is well beyond consumer expectations."
So there you have it, folks! Now you know you shouldn't join a loyalty or rewards program unless it suits your shopping habits.
What are your thoughts? Comment below and let us know!
Many of us probably even have a wallet full of them! (Okay, we're guilty of this…)
However, there is one question that has been circling our heads for quite some time now – is signing up for everything really going to help us save money in the long run?
Some people will say that going to different stores to take advantage of different sales is well worth the time, but more and more evidence suggests that this is probably not the best way to do things if you're looking to cut back a bit on your expenses.
Australians have many loyalty program options, but are they worth the effort? Credit: Creative Commons.
Adam Posner, CEO and founder of The Point of Loyalty, said that consumers shouldn't try to take advantage of every offer they see. Instead, they should focus on how to get the most out of one main loyalty program.
"Consumers get the most benefit from programs when they consolidate their spending", he said in an interview with news.com.au. "So if they spend consistently with a brand that gives them the best service, quality and pricing, they will get more rewards."
"If you’re always shopping around, you won’t get your rewards. You’ve got to be more loyal to the business to get more rewards," he added.
Mr Posner went on to say that people who are always looking for one-time deals typically end up saving less money in the long run.
"They don’t tend to get too many rewards if they’re spending a little bit everywhere because the rewards don’t accumulate on the same program," he said.
"You’ve got to keep your spending at one brand or business to get better rewards quicker."
Even if it means shelling out a bit more for an item that could be purchased at a cheaper price somewhere else, the expert argued that the investment would eventually pay off in the future.
Scan or link your Flybuys card at a Coles Group store to earn points on every purchase. Credit: news.com.au.
If you are finding it hard to believe Mr Posner's words, just take a look at the case of this one mum from Canberra who managed to fund her holiday getaway using only her FlyBuys savings.
In an interview with news.com.au, mum-of-two Anna Brown revealed that her loyal and consistent use of her FlyBuys membership had allowed her to treat herself to luxuries she otherwise couldn't have afforded.
By using her saved-up points and taking advantage of an Adrenaline sale, she and her partner did the Sydney Harbour Bridge climb and a hot-air balloon ride over Canberra for free.
She has also earned a reputation as something of a legend among Kmart mums when she previously shared that she was able to furnish her entire nursery room without having to pay anything.
If you're wondering how she managed to accomplish all of this, Mrs Brown claimed that her greatest strength has been paying close attention to "stacking" her points, which is a strategy in which multiple offers are used in conjunction with one another.
For example, she made sure to meet the spending requirements for four-week offers and spent money on things that gave her bonus points during that time.
The mum also told other members to resist the urge to spend their points right away and instead "stash" them for bigger purchases.
To make the most of their FlyBuys memberships, she also urged fellow shoppers to spend a little more time planning their trip to the store before leaving home.
"When I do my shopping list for the four weeks coming up, I number each week and make sure I am meeting $50 for each week, and slot in some extra bonus points along the weeks," she said.
Mrs Brown has been able to save more than $1,000 over the last year by using the app to keep close track of her points.
Everyday Rewards is the loyalty programme run by the Woolworths Group. Credit: Shutterstock.
Of course, Mr Posner's advice also goes out to Everyday Rewards members!
Recently, James Wragg from Queensland revealed that he was able to get a brand-new television by using his accumulated points, saving him more than $500 on the purchase!
The loyal customer attributed his success to taking advantage of special offers whenever he has the spare money to do so. "Getting the best out of the membership is spending what you can on offers that you can afford to spend on. Like spending $50 for 5000 points," he said.
Besides that, he also emphasised the importance of living within your means and advised against blowing your budget on a promotion if it wasn't financially viable.
Every week, Mr Wragg consistently saved about 1500 points, which is equal to about $5.50.
Aside from Mr Posner's advice of staying "loyal" to a loyalty or rewards program, there are also other reasons why you shouldn't sign up for any rewards programme the first chance you get.
According to the experts over at CHOICE, people should be careful about joining loyalty programs because they don't know how retailers will use and share their personal information.
"Loyalty programs aren’t free," consumer data advocate Kate Bower said. "The true cost of these programs is your personal data which can be used for manipulative practices and even personalised pricing."
"People might not realise that supermarket rewards programs share data and insights with their insurance businesses, while others could be sharing your personal information with data brokers. This is well beyond consumer expectations."
So there you have it, folks! Now you know you shouldn't join a loyalty or rewards program unless it suits your shopping habits.
What are your thoughts? Comment below and let us know!
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