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View Full Version : Loyalty Programs (Points/Miles)



coolbrook
August 4th, 2011, 06:35 PM
Do you collect reward points?

I have two for 'miles', the third is a retail card and another accrues points for gasoline/petrol purchases. I'm thinking of sticking to the two programs that offer better value for consumption.

In recent years I redeemed points for some headphones and a travel radio. The headphones were great, but the band was flimsy plastic and snapped. The radio was also very nice (AM/FM/SW/LW) but I'll have to get a pair of headphones to adjust the volume since the volume dial is no longer responsive.

What are your experiences?

marshmallow1304
August 4th, 2011, 09:32 PM
They give you back your own money to spend on mostly worthless tat while charging their clients (businesses) more to pay for it. The businesses pass on the extra cost to you. Who do you think is really winning here?

KiwiNZ
August 4th, 2011, 09:39 PM
I fly a lot, two to three trips per month. I gather quite a haul of Air points from which I have several free trips a year. Thats a win in my books as I don't fly budget airlines I only fly full service carriers so it a discount worth having.

I get similar with Rental cars.

As for other loyalty schemes if it doesn't cost more than the normal retail to buy products with loyalty points why would you not take them and use them? Of course they make a profit on it, if they didn't they would not be in business. Profit = employment.

forrestcupp
August 4th, 2011, 09:53 PM
I have a points based credit card. If we spend about $800 more, we can get a gift card worth $100. Since we're trying to get out of debt and pay that card off, I think it will be a long time before we reach that goal. I could cash in for a $50 gift card if I wanted to.

I also have a cash rewards debit card for my checking account. I get cash back for direct deposits, online bill payments, and buying things with the debit card. Since we use the debit card for everything we do, I'm loving that. We get almost $9 a month cash rewards just for doing what we always did anyway.

But the key to using an interest building credit card this way is to be very disciplined and pay the entire balance off each month. It's too easy to be tempted to get yourself deep into debt with a credit card.

doas777
August 4th, 2011, 09:57 PM
i am generally offended by loyalty programs, for a number of reasons. I believe that they are nothing more than a deceitful means to grab personal data.

a decade ago, my grocery store started a loyalty program. the first thing they did was raise all the prices store wide by 14%, and then if you had a card, they discounted them back to the normal price. they also tied all their "sales" to the card, so you had to have one to get the Buy-one-get-one offers and whatnot. in the end, they wanted valuable demographic data, and used underhanded techniques to get us to opt in.

forrestcupp
August 4th, 2011, 10:02 PM
i am generally offended by loyalty programs, for a number of reasons. I believe that they are nothing more than a deceitful means to grab personal data.

a decade ago, my grocery store started a loyalty program. the first thing they did was raise all the prices store wide by 14%, and then if you had a card, they discounted them back to the normal price. they also tied all their "sales" to the card, so you had to have one to get the Buy-one-get-one offers and whatnot. in the end, they wanted valuable demographic data, and used underhanded techniques to get us to opt in.

Yeah, in the case of grocery store cards, I hate them. You're absolutely right. They mark up all their prices, and if you don't have a card, you'll pay your whole paycheck on groceries. Plus, I hate having to carry about 20 different cards in my wallet for all the different grocery stores, pharmacies, gas stations, etc. They need to make one joint card that they all can access.

bouncingwilf
August 4th, 2011, 10:04 PM
As a peripatetic scientist who averaged 10+ hours/week in business class longhaul for 10-15 years, I still have a stock of airmiles that will take me and "she who must be obeyed" round the world several times in first class - only problem is I never want to go near an airport ever again! I do probably one domestic or European flight a year just to keep the points valid but if the truth were known, I'd get a ferry every time!


Bouncingwilf

KiwiNZ
August 4th, 2011, 10:05 PM
i am generally offended by loyalty programs, for a number of reasons. I believe that they are nothing more than a deceitful means to grab personal data.

a decade ago, my grocery store started a loyalty program. the first thing they did was raise all the prices store wide by 14%, and then if you had a card, they discounted them back to the normal price. they also tied all their "sales" to the card, so you had to have one to get the Buy-one-get-one offers and whatnot. in the end, they wanted valuable demographic data, and used underhanded techniques to get us to opt in.

Airlines, Rental Car companies and Hotels already have your details ;)

marshmallow1304
August 5th, 2011, 02:51 AM
As for other loyalty schemes if it doesn't cost more than the normal retail to buy products with loyalty points why would you not take them and use them? Of course they make a profit on it, if they didn't they would not be in business. Profit = employment.

Because it drives up the cost of retail goods. I'd rather pay a few cents fewer on each purchase I actually want to make than get a "free" toaster or cash back.

KiwiNZ
August 5th, 2011, 03:04 AM
Because it drives up the cost of retail goods. I'd rather pay a few cents fewer on each purchase I actually want to make than get a "free" toaster or cash back.

The cost on retail prices would be negligible.

marshmallow1304
August 5th, 2011, 03:46 AM
The cost on retail prices would be negligible.

The consumer pays for it one way or another. Retail prices (even negligible), fees, interest. 0-sum game, no free lunch, etc. etc. Follow the money...

del_diablo
August 5th, 2011, 03:59 AM
The cost on retail prices would be negligible.

It is, but you spend quite a lot of money over the year on consumer goods.
And if your only local store got a loyality program of sorts, and it means 1-2% discount and some member benefits, it will be a lot of cash spared over a few years.
But then again it does not make sense on other things than gasoline and normal consumer goods(IE: food)

KiwiNZ
August 5th, 2011, 04:08 AM
All I can say I have a lot of free flights , free car rental and the Hotel chain I stay in has given me a few free weekends.

mamamia88
August 5th, 2011, 04:15 AM
capital one. get 1% cash on any purchase that you can redeem at any time without them taking a cut for credit on your account to spend however you want. that is about it

Dr. C
August 5th, 2011, 04:50 AM
I prefer the 1% cash back approach on credit cards. Then take the 1% cash back and put it into a savings account. Simple and effective, and yes one does not pay more at the checkout.