Rewards points could be a collector’s best friend but also a procrastinator’s worst nightmare. One mistake and you could end up losing years of work and a collection of tens of thousands of points in an instant. Ouch! We have heard horrifying stories from the collectors who lost thousands of points simply because they did not pay attention to the expiration dates.
Rewards points are a great motivator for many of us who prefer to spend a dollar and gain something back in return. We will share some expert strategies and tips to collect and redeem your rewards points. Let them grow!
For first timers, we will first explain what a reward point is and how it works
Companies offer rewards points in a bid to foster loyalty and repeat purchases. Customers, on the other hand, stand to gain from deep discounts, loyalty rewards, and other benefits when they redeem the points. These points make sense, especially if you like the brand and prefer to work with the same company over and over.
From retailers and credit card companies to hotels and airlines, rewards points are offered by millions of companies in a bid to foster repeat purchases. Companies offering rewards often use different terms, such as discount cards, points card, loyalty card, advantage card, club card, and other similar variations.
A customer simply needs to present the card to either accumulate the points (on every purchase) or receive discounts and special deals.
How to collect rewards points?
Generally, you accumulate rewards points automatically. For every dollar you spend on your shopping, the system would automatically add a few points to your membership account. The system varies depending on how the program is setup. Certain programs are setup to award you one point for every dollar spent, others may double the number of points, while still others offer fewer points on every dollar spent.
How to redeem your rewards points?
Redeeming rewards points is not hard. When you accumulate a certain number of points, you need to notify your provider as to the number of points you have accumulated. In case of retailers, you would just need to visit the store and exchange your points for items you can purchase with the points. Some companies provide online accounts where you can manage and redeem your rewards.
What about travel rewards?
Some companies, especially credit cards and airlines, offer travel rewards wherein you accumulate a certain number of points for the amount you spend. When the total points reach a higher figure you can either obtain discounts on your next trip or book a ticket with another airline from the company’s website. If you accumulate a substantially larger number of points, you can even fly free ($0).
Where to redeem the rewards points
Usually the company’s website would be the best place to start but in case of retailers a store location would do the job as well. Most consumers prefer the convenience of an online redemption policy.
Advantages of rewards programs and points
– Receive special prices and percentage discounts that are reserved exclusively for loyal customers.
– Receive preferred customer service
– Get a preference, at least where priority tickets and purchases are concerned
Rewards points dos and don’ts
Dos
– Track your spending and your points
– Use online services that would do all the work for you
– Read the fine print to maximize your purchases and your points
Don’ts
– Don’t spend just for the sake of collecting the points
– Don’t ignore expiration dates and redemption policies
– Don’t ignore guidelines for purchases and points
How does a company/brand benefit from rewards points?
First, they develop a loyal customer base. Customer may not be aware but they are truly priceless for any company/business that is serious about its bottom line. Cost Per Acquisition is the term used to indicate the cost of acquiring a single customer and in many industries this cost could run in the hundreds or even thousands of dollars. By fostering loyalty and offering discounts, companies can benefit from a loyal customer base and reduced marketing spend.
In addition to the direct financial benefit, when a customer signs up for a rewards program, there is a clause that allows marketing departments to track purchase patterns and send extremely targeted marketing messages and promotions. This strategy further boosts the sales funnel and impacts the ROI in a positive manner.
In conclusion
Rewards points could be a great value-add tool for getting discounts, booking cheaper flight tickets, and getting something in return for the purchases you make. One caveat, though, carefully monitor both your spending and your program’s expiration and redemption policies. Some programs do not have an expiration date while others have much stricter guidelines.
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