Best Friends – Saving money with Loyalty cards/programs

Customer loyalty programs signified you get some cards from the retailer when you purchases or others way so that you could be awarded with a free sample or a car wash or some discounts.

I am interesting in collecting loyalty cards in order to save money, such as giving me some special offers, getting the gift card towards the future purchases and getting their member magazines and coupons etc.  On the retailer side that going through the issuance of loyalty cards/programs, a lot of benefits could be obtained, such as: 1) to build customers’ loyalty and get more profits from customers; 2) to differentiate business from competitor and provide incentives customer to continue purchasing and 3) to identify the best customers, and then could create strong relationship with them. 

I learned through my search on the websites that loyalty cards/programs are very popular in Canada. A Canadian holds an average of 6.4 loyalty cards, and 92% Canadian customers registered at least one loyalty program. There are some different loyalty programs that you are able to get enrolled based upon your favorites and habits. Below are common loyalty programs that most of retailer offers. 

Points: If you purchase something you earn some points. When reaching certain points you can use these points to get the free gift or use points towards future purchases. For example:  Shoppers Drug Mart loyalty card allows you to spend 22,000 points that reward $30 off on your future purchase; Bloomingdale's loyalty card that you can use 5,000 points to receive a $25 Bloomingdale’s gift card; Neiman Marcus loyalty card offers everything you’d expect from a high-end retailer’s loyalty program. Member can earn points for money spent in the store and online, and for every 10,000 points earned, you receive a $100 gift card.

Reward Dollars: every dollar your spend, then you earn a percentage back on their card. For example, MBNA SMART credit card. It awards up to 5% cash back on all of eligible gas and grocery purchases for the first 6 months; and up to 2% cash back on eligible gas and grocery purchases as well as up to 1% cash back on all of other eligible purchases thereafter. Once the cash back totals at least $50 at the end of a monthly billing cycle, a cheque will be mailed to you. 

We'll discuss more of  customer loyalty programs next

Reference : Peiguss, K. (2013, Apr). 7 Customer Loyalty Programs That Actually Add Value. Retrieved from Hubspot: http://blog.hubspot.com/blog/tabid/6307/bid/31990/7-Customer-Loyalty-Programs-That-Actually-Add-Value.aspx