We love our loyalty programmes in South Africa. Seventy-nine percent of us use loyalty programmes – and have even upped our usage over the past year. Nearly two-thirds of us belong to between two and five programmes making us the most loyalty-programme-mad nation in the world according to Nielsen.
Recent research shows that although South African customers will readily sign up for a loyalty programme if they are offered a good deal, they will only continue to actively engage with the programme if it remains attractive in the long term – meaning that businesses need to continually refine their loyalty offerings to ensure that they add real value to customers’ lives.
This is good news for us as consumers, because it means the companies we buy from have to up their game to keep our business, however, most of us would still like to know how we can get the best value when it comes to rewards.
Here are some tips for choosing the right rewards programme for you:
1. Do your research: Different rewards programmes may be structured differently, so it is critical that you know the criteria you need to meet to earn rewards for each of the programmes you are part of. Some companies use a tiered approach based on your spending or the number of their products or services that you use; generally, the higher the tier, the greater the rewards but make sure you do your research to know exactly what you are signing up for.
SEE ALSO: 5 common debit card misconceptions demystified
2. Determine upfront whether you are required to pay a membership fee and work out what your obligations will be: While many retail loyalty programmes are free, you generally need to pay for banking rewards programmes. This allows your bank to create a partner network that will make a real and noticeable difference in your life – at the places you actually spend your money. Know what, if any, impact your loyalty programme will have on your pocket.
3. Establish what form your rewards will take: Will you get cash back for your points, for example, or a discount on the overall amount you will pay? By knowing what form your rewards take, you will have the ability to make your rewards work for you and actually meet your needs.
4. Know your loyalty programme’s rewards partners: Partnerships are critical to the success of loyalty programmes and if you know where you will earn your rewards most effectively, you will be able to adjust your spending and where you shop to get the most out of your loyalty programme.
SEE ALSO: 5 reasons you’re finding it difficult to save
5. Check if you qualify for additional rewards: Many rewards programmes offer bonus benefits as an incentive, so be sure to check the fine print when you sign up for a programme to make sure you get all the benefits you are eligible for.
Reading the fine print is probably not top of your list of good times, but taking the time to familiarise yourself with the ins and outs of your rewards programmes will ultimately save you valuable cash and help you make sure that your hard-earned money is working for you in the right way.
