A £5billion fortune is sitting on loyalty cards, a recent research suggested. The average consumer has three loyalty cards but hasn’t a clue what the points mean or what they are entitled to. Despite their ignorance, shoppers have been adding to each of their cards for at least five years.
‘It’s a missed opportunity if consumers don’t redeem their points or look our for special offers and promotions that can provide incremental opportunities to boost their rewards.’ said Alex Cacouris, head of marketing for the Subway sandwich chain, which commissioned the study.
Loyalty card points can be cashed in for discounted entry into various attractions, money off big-ticket goods or simply cheaper weekly shopping bills. ‘Many just don’t understand what their pints entitle them to. Loyalty cards can provide savvy consumers with extra value in the medium to long term’ said Mr Cacouris.
Most of the 3000 people questioned estimated their average card entitles them to around £36.57 of goods – which means a total of £109.71 to spend. Subway published the survey when it launced its own loyalty card.
Using your loyalty points to reduce expenses when you are trying to become debt-free is a very good strategy but you need to do it with caution.
Wikipedia described Loyalty Programs as “structured marketing efforts that reward, and therefore encourage, loyal buying behaviour — behaviour which is potentially of benefit to the firm“. The stores and credit card companies are banking on your overspending to acquire the loyalty points and then forgetting to redeem them!!!
Use those loyalty points as soon as you can but cautiously.
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