Monday, March 7, 2011
Loyalty programs and their points
Since I am doing a $100 Christmas this year and am looking at ways to earn extra gift cards to use (if only we had as many options as those in the USA!)
So I decided to compare the different loyalty clubs I have anything to do with to compare their rewards system and see which work out better for me.
Firstly I decided to look at the groceries. I actually shop where ever is cheapest, and these ‘loyalty’ schemes do not persuade me as to where I will shop but I thought it would be interesting to compare.
The 3 main grocery ones I know of for Australia are Fly Buys, Franklins and Every Day Rewards (Woolworths)
With Fly Buys you can accrue points from Coles, Target, K-mart, Bi Lo, Curves, Best Western and a few other places. For the most part you get 2 points for every $5 (thats at the retail/grocery stores). You need 2600 points to cash out a $20 Fly Buys gift card (which can be used at their affiliated stores). Working this out you need to spend $6,500 to get $20. Each $1 you spend is worth $0.003. woo hoo.
Next is Woolworths where your points can be accrued as Qantas Frequent Flyer points. You can earn points at Woolworths, Big W, BWS and Dick Smith. You earn 1 point for every dollar you spend over $30 in a transaction, or over $50 at Dick Smith. If you spent $200 a week (I spend less, but will use this) thats 170 points a week. It would take 22.05 weeks to accrue enough points, or $4411.50 for a $25 voucher. You need 2750 points for a $25 Qantas Frequent Flyer Store card. (Alternatively you can keep accruing points for flights and things.) So each $1 you spend is worth $0.005. Better than FlyBuys, but still not awesome.
Last up is Franklins. You can only accrue and redeem points from this loyalty club with Franklins. 2000 points can be redeemed for a $20 Franklins card, and you can redeem at as little as 500 points for $5. It can be taken off your groceries at the counter too. So spend $2000 and get a $20 voucher. Certainly looks better than the others, but it is very limited. $1 you spend is worth 1c!! Wow, we finally hit the 1cent mark for rewards!
Now, these are just the basics. With each of the programs there are bonus points for different things you buy, or bonuses for signing up to their credit card or whatever. What I have written above is the very, very basics.
With what we spend if I did it all at Franklins (which I don’t) I could get 2 $20 gift cards. Not holding my breath about earning vouchers for Christmas this way.
All my other ‘loyalty clubs’ don’t really offer gift card rewards and I don’t really spend enough anywhere to earn points.
I know there are many out there for almost every store, but since I can get most of what I need online for cheaper or at stores without loyalty clubs which are really not worth it, I don’t use them.
Prior to this I never really thought about which loyalty club works out better, but then I supposed for me it is not a large enough factor in my groceries as I prefer to save the cash rather than cash points by shipping smartly.
What loyalty clubs are you a member of?
(I’m based in Australia, so Aussie ones would be awesome, though I am working on convincing my hubby we should live in The States for a year, he’s a citizen, so any clubs would be good.)