I JUST came from National Bookstore, where I bought two black pens. My receipt showed that I have 565 points in my e-purse, which translate to P80.00.
That put a smile on my face. You see, I am a frequent shopper of that bookstore, and I have already claimed a lot of discounts on my purchases using the points in my e-purse. The P100 renewal fee of the Laking National card is really worth it for a frequent shopper like me.
Name it, I probably have it – SM Advantage card, Powerbooks' Powercard, BDO Rewards card, Bench Lifestyle Card, Mercury Drug Suki card, South Star Drug's Tipid Card and MedExpress's card, among others. Yes, I'm a sucker for reward cards that earn points leading to discounts. In fact, last year, when I was paying my son's tuition, the cashier asked me if I would be paying by cash, check or credit card. When she said “credit card,” I said, “Hmmm.” And the cashier gleefully said, “Sayang ang miles!!!” We both laughed, and I handed over my credit card so I can earn more reward points.
Reward programs please both the customer and the store. Customers can look forward to earning more points to get discounts on future purchases, while stores get assured of customer loyalty. An added plus: stores get access to customer profiles and buying habits, which may help them in making their business strategies.
But not all reward programs work. Customers hate it when terms and conditions are revised without adequate information dissemination (remember SM Advantage card's accident insurance automatic enrollment? Read about it in the Money Smarts archives here). Customers also don't like it when it takes so long for points to be earned and redeemed.
Sales and marketing speaker Robin Johnston, in an article entitled “Using reward programs to create loyal customers” which came out on www.evancarmichael.com, says a good reward program tells customers how they will be rewarded, gives appropriate rewards, gives the best rewards to the best customers, and considers timing carefully.
I'm still evaluating whether my other reward cards are worth renewing. I think if I can redeem as much discounts as the renewal fee, it's definitely worth keeping the reward card.
