Is your loyalty up for sale?
Does the promise of reward points make you change the way you shop?
Chances are, you’re a member of at least one “loyalty scheme”.
Also known as rewards programs, these are marketing strategies designed to incentivise customers to repeatedly engage with a business or brand.
You may already shop with a FlyBuys or Rewards card or have a credit card that issues points that can be converted to frequent flyer miles or are redeemable for other goods and services.
From a customer's perspective, loyalty schemes can have both advantages and disadvantages. Here are some pros and cons to consider if you’re thinking about joining a scheme or wondering whether you are getting full value from the ones you already participate in.
Loyalty programs often offer rewards such as discounts, cashback, points, or exclusive offers. These incentives can save you money or provide you with additional value.
They often provide personalised experiences, such as customised offers, early access to new products, or tailored recommendations. This can make you feel valued and appreciated.
By consistently engaging with a loyalty program, you can accumulate rewards over time. These rewards can be redeemed for future purchases, leading to cost savings in the long run.
Some loyalty schemes offer access to exclusive events, product launches, or special promotions. The idea is to make you feel like a VIP and create a sense of belonging.
Many programs incorporate gamification elements, such as progress bars, badges, or levels, making the experience more enjoyable and engaging for customers.
Loyalty programs often require you to share personal information or allow tracking of your purchases and behaviour. This can raise privacy concerns for some customers.
Some schemes restrict customers to specific brands or products, limiting their options and flexibility.
To maximise their rewards or maintain membership status, customers may feel pressured to spend more than they originally intended. This can lead to unnecessary purchases or increased financial strain.
Loyalty programs may have intricate rules, expiration dates, or redemption processes that can be confusing or time-consuming to navigate.
Customers who join multiple loyalty programs may receive a significant amount of promotional emails, notifications, or messages. This can lead to information overload and a cluttered inbox.
Ultimately, it’s up to you to judge whether a particular loyalty scheme is the right fit.
The thing to remember is that one size doesn’t necessarily fit all. You need to assess the value you derive from a loyalty program and consider whether it aligns with your needs and shopping habits.
It could be that you are paying more for your loyalty to a certain brand then you would if you shopped around. Or you may find yourself paying the same amount, or less, and receiving a few extras you might not otherwise get to enjoy.
