The Pitfalls of Loyalty Bonuses
There are many benefits to loyalty schemes, who wouldn’t say yes to some rewards? However that’s not to say there are no pitfalls. In fact if you don’t use your common sense then you could end up spending a lot more than you should and buying things you really don’t need. But if you want to avoid the pitfalls there are just three rules you need to follow in order to make the most of your card without spending too many pennies.
Don’t Be Loyal to a Shop You Don’t LikeEvery store you go into will offer you a loyalty card even if it’s a store you rarely go in to. In fact the term ‘loyalty’ has been made redundant as the stores don’t actually give cards to loyal customers. Instead the cards are given to just about anybody who makes any purchase! That means though that you could end up with a card for a shop you don’t actually frequent that much.
The problem then though is that you may end up going to a shop you normally wouldn’t visit just because you have a loyalty card for it and you are drawn in by the prospect of rewards. Make sure you only take a loyalty card out in a card you are going to visit a lot and if you want a card for a shop you rarely visit don’t feel you have to go make purchases there just to receive rewards – you’ll only end up spending more than you save.
Don’t Buy Products You Don’t NeedThe other danger with loyalty cards is you will end up buying products you don’t actually need just in order to collect points. Products you would not normally buy may offer double points so you may be tempted to buy them just to gain rewards. However if you don’t need the product you are spending money that need not be spent. Only by the products you would normally buy and do not get drawn in by the prospect of double points.
Don’t Buy Products That Are Cheaper Somewhere ElseOne of the main dangers of loyalty cards is the fact you will stay ‘loyal’ to one shop when in fact you could get products cheaper elsewhere. For example if you could buy your usual shampoo in one shop and get loyalty points but get it cheaper in another store without receiving loyalty points. It is important to work out what you will save each way.
For example if you will earn enough points from the first store to have £1.00 and the shampoo in the second store in £2.00 cheaper then you should buy it in the second shop.
Loyalty cards are there to keep you loyal to the shop but also to save you money. If you’re not saving money or earning rewards then you must think carefully about what you are doing with your card and whether it is worth you having one. Being aware of the pitfalls is the most important rule in making the most of your loyalty card.