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.
August 28th, 2009 at 5:50 pm
I agree with Hidden’s comment that “reward cards” reward the card issuer, not the cardholder. In fact, you cannot convert them into cash. The card issuer just wants your “patronage”. But there’s a company (won’t mention it) that do reward their “loyal customers” with cash at the end of each month (in form of rebates and bonuses) for points earned. That is a much better deal! Why don’t the Ayala’s or the Sy’s try to do that for SM?
August 11th, 2009 at 12:00 am
I’m based here in Los Angeles, CA. There is this balikbayan box company, Manila Forwarder, that offers free balikbayan box shipping everytime I reach the 15 th box. I send about 6 balikbayan boxes a year and that 15 th box free makes me stick with Manila Forwarder. Of course their service is also great and they have super friendly staffs.
July 29th, 2009 at 3:33 pm
Most reward cards reward the card issuer, not the cardholder. In the case of stores issuing cards (SM, supermarkets, bookstores, appliance stores), the prices are already padded to be able to give you the points. It also encourages you to come back to spend more at the same establishment in the hopes of redeeming points for something (items, cash equivalents, etc.). The worst issuers are those that expire cards or points (SM, National, Pizza Hut, PAL, for example) because you tend to use the cards or buy from the establishments just so the cards have use.
Here are some good cards:
BDO Rewards Card - if you have a BDO account with enough balance, the card is free and has the same uses as the SM Advantage card. When the card expires, renewal is also free. And as far as I know, the points (which you can get just for having enough deposits in BDO each month) do not expire.
HSBC _DEBIT_ Card - the card is free with your HSBC account. If you’re a motorist, it gives you the same 5% rebate at Caltex as regular HSBC credit cards. Replacement is free when the card expires (5 years?), and it’s also a swipeable Visa card. Withdrawals at ANY ATM in the Philippines are also free (no transaction fees).
And some bad cards:
Pizza Hut PALM Card - PALM stands for “Pizza and Lots More”. You have to spend P60-80 more worth of Pepsi to get the “free” second pizza, and the P300+ card expires after 6 months.
PAL Mabuhay Miles - how many flights to HK to get a free flight to HK? Around 15. Miles expire after 2 years, and there are surcharges on the “free” flights. You must be a rich jetsetter for the miles to really have value, and if you’re a stingy jetsetter, chances are your PAL flights don’t even earn any miles.
As for credit cards, the trick is to stick to only one card each year. You get the card for free, use it to spend, redeem whatever’s redeemable at the end of the 11th month (takes around 2-3 weeks to process), then cancel the card at the end of the 12th month. Don’t forget to apply for a card with another issuer at the start of the 12th month, and to pay for the entire balance before closing the card. If you were a good spender, there is a very slim chance that the issuer will offer to extend your card another year for free (T.Y.!); otherwise, you should have another card in hand for the next 12 months.
July 16th, 2009 at 2:04 am
“sayang ang miles?!”
for me sayang ang pera… in my province in which i frequently fly to because of my business, pal used to offer 4k plus 1 way while the competitor airline was only offering P1200. I just got a ticket and paid less than a thousand but pal was like offering 2k plus. They are acting like they are the only airline operating in the country. complete BS
July 11th, 2009 at 4:09 pm
you really have to be very smart when you want to redeem your points from pal mileage. with today’s so many promo fares from diff airlines, sometimes it is more expensive redeeming pal tckets coz you have to pay taxes & other charges. some airlines (even PAL) offer fare lower than the taxes charge. and usually, when you want to fly during peak season, more often than not, theres no available slot for redeemed tkets…
anyway, i had a good experience redeeming my points. i went to the ticket office 3 months before my flight…