Why loyalty rewards programs are a good idea

If you frequent a retailer regularly, why not sign up if they have a strong loyalty program?

Shopping expert Kathy Sheeran says a good program will mean you receive benefits such as vouchers, gifts and exclusive offers based on money you are already spending.

“This is a great way of getting better value from your shopping,” Kathy said.

Loyalty cards are designed to offer rewards to attract customers back to the same store. Thanks to technology they are also a help for businesses too as they collect data, which enables them to offer you personalised shopping vouchers or notify you of upcoming sales of your favourite products. The data also lets businesses know when you try new products, or how regular you are as a customer, letting them see spending trends while profiling shoppers habits.

Kathy, who it the author of Shopping Confessions, said you will find more and more stores are offering rewards programs, from your local coffee store to the large supermarkets. “It’s simple and free to sign up! Just shop as you normally would and you will be rewarded with points based on your dollar spend.”

Depending on the retailer and the number of points you have accrued you will be sent a voucher, discount or gift either quarterly or yearly. “Personally, I prefer monetary rewards that I can put towards my next purchase,” Kathy said.

With some of them, such as the new Priceline Sister Club program, you don’t need to remember to bring your card as they can look up your membership at the register. With Priceline Sister Club you’ll also receive a quarterly voucher over email based on how much you’ve spent in that time, and this can also be applied at the checkout without needing to bring anything in the store.

Not all loyalty programmes are created equal, and Kathy said she would never pay a membership fee to join. “Before joining ask yourself questions like how often you shop with that retailer, what the rewards are and how much you need to spend to be eligible for rewards.”

Kathy said there can be a big minimum spend for some retailers which offers smaller rewards, and to receive the maximum benefits you should consolidate your cards. “There is no point having five rewards cards for five health and beauty retailers, you won’t get the maximum benefits.” “In total, I only have four rewards cards – Priceline Pharmacy Sister Club for all my health & beauty, Woolworths for groceries, Qantas for travel, plus Myers for fashion and homewares. “This allows me to get the most out of each program and save money on my shopping!”

What is your favourite rewards or loyalty card program?