Do you have any friends who use rewards programs, then have a hard time believing they were really able to save that much? It happens all the time and it’s super easy.
What is a Rewards Program?
Store rewards programs, also known as loyalty programs, offer you incentives to continue shopping at that particular store through discounts and prizes. Some retailers like CVS and Walgreens will give you a loyalty card for free, while other loyalty cards come at a premium but promise to pay off later (think Amazon Prime). There are also retail credit cards that offer discounts, like Best Buy, every time you buy and pay with that card.
Originally launched in the mid 1990s, corporate loyalty programs were invented so you’ll reguarly shop them. It also gives you more incentive to spend when you wouldn’t otherwise. While these programs can be a slippery slope for your budget, done right they can save you a lot of money.
Maximize Those Rewards
Signing up for a rewards program is easy. Maximizing them takes some effort – the key to making these programs work for you is to have a solid understanding of the program and remember to use the program.
Educating Yourself
Understanding the loyalty program is especially important if you’re signing up for one that costs money up front. Compare the price of the program with the amount you could save by using it. Think about the type of retail it is, and whether you spend enough to justify the cost to join. If how much you’ll spend on what they sell annually is more than the join price, go for it. If you rarely shop there…rethink joining.
After you join a program, you must be aware of what you get and when it expires. Many rewards points expire one year after they’re earned, while some expire several months after an account has been inactive. If you have rewards that have already expired, all hope may not be lost. Some stores have a loose policy on what “inactive” means, but to play it safe evaluate when things do expire and whether or not you’re likely to use the rewards in that amount of time.
So which rewards programs are the best? In short any rewards program that allows you to continually earn rewards are best. That way you’ll ensure you’re gaining (and keeping) rewards over a reasonable amount of time and that you don’t have to overspend to take advantage of the rewards.
Remembering To Use Rewards Programs
It almost sounds insulting for me to write that, but we get so mired in our busy lives we often forget to use rewards. I literally use double stick tape to put coupons on the wall calendar so I remember to use them!
One way to remember is plan ahead. Before you head out to a restaurant, shopping trip, or social function, double check to see if you have a corresponding rewards card and grab it before you go. Another option is to have these cards in your wallet at all times and/or to register with your phone number so the retailers can find you easily in their system. As an example I have my Passport Unlimited card in my wallet so I always have it when I go out to eat (which is probably more than I should).
In addition to using your cards for rewards there are other ways to rack up points. You can find out other ways to earn rewards by visiting the retailer’s rewards page. Back when I worked for Delta Air Lines I used to post limited time offers and special offers for SkyMiles members, they were able to earn points at restaurants and other retailers – not just by booking flights.
When it comes to loyalty programs, start slow and then strategize. When you get comfortable with the system, you can find more ways to save. In the end you’ll feel rewarded by taking the time to get more for your money. There’s nothing better than a freebie!