How to get the biggest benefits from loyalty programs

Reward programs can offer money for nothing and your flights for free, but for many people the biggest benefits go begging.

Loyalty programs have copped criticism lately – largely centred on besieged airline Qantas’s frequent flyer scheme – but for millions of consumers they remain a great way to get something for nothing.

While Qantas battles claims that its rewards points have lost value in recent years, it hasn’t stopped people piling up points from their shopping, spending, borrowing and travelling, and there are several strategies to get more bang per point.

Loyalty program specialists say consumers should try to earn points everywhere they can, understand the value of each point, seek sign-up bonuses and multiple-points deals, and double up when shopping to take advantage of more than one scheme.

“When it comes to loyalty programs, the more you scan, the more you collect – it’s that simple,” says Flybuys CEO Anna Lee.

“If you’re going to spend the money anyway, you may as well get rewarded for it.”

Competition is fierce among loyalty programs. Picture: NCA NewsWire / Luis Enrique Ascui

It is estimated that almost 90 per cent of Australians are a member of at least one loyalty scheme, and the most widely used programs include Flybuys, Woolworths’ Everyday Rewards, Qantas Frequent Flyer, Velocity Frequent Flyer, Amazon Prime, MyMacca’s Rewards and eBay Plus.

EDUCATE YOURSELF

Point Hacks spokesman Dan Sciberras says it is a good idea to learn about your loyalty programs so you understand their partners and are “not leaving any points on the table”.

“Many Australians transact with companies daily where they could earn points from their transaction but miss out, as they didn’t realise that company was a partner of their frequent flyer program,” he says.

There are websites and social channels containing handy hints for earning and using loyalty points, including ways to avoid paying joining fees, Sciberras says.

Airlines have different ways to book fares with different points requirements. Reward program fares require much fewer points than a regular flight, gift card or online store item.

“The best bang for your point has always been and is still currently redeeming for long-haul premium seats, especially in business or first class,” Sciberras says.

“Here you are likely to get anywhere between 2c to 6c-plus in value per point redeemed.

“This is in contrast to short haul economy flights, that generally earn between 0.5c to 1.5c per point, and gift cards or rewards store redemptions, that generally offer between 0.4c to 0.8c per point in value.”

Sciberras says competition is becoming fiercer among loyalty programs. “And the competition in Australia may heat up further with the expected launch of Rex’s frequent flyer program by the end of this month,” he says.

MULTIPLY REWARDS

Consumers can multiply their points by using supermarket programs such as Flybuys or Woolworths Everyday Rewards and then pay for their purchase using a rewards credit card that perhaps also delivers points per dollars spent. However, only use a rewards credit card if you repay the debt in full each month – otherwise the benefit of earning points is wiped out by the high interest you pay.

Reward programs often have specials to earn multiple points, and Lee recommends “stacking your offers in the Flybuys app to get the most points possible”.

Dion Staffieri says Flybuys was his first loyalty program. Picture: Supplied

“We know it’s a challenging time for many Australian households, and loyalty programs are a great way to get more bang for your buck on your everyday spending,” she says.

“Have a look at what your household goals are and find a way to make loyalty programs work for you – whether it’s money off your groceries or fuel, free delivery or jetsetting … there’s endless opportunities to reap the rewards without spending more.”

Dion Staffieri had not used loyalty programs before he joined Flybuys but says he now makes the most of many promotions “just by spending money I’d be spending anyway”.

“If I can get rewarded for my regular lifestyle, why wouldn’t I?” he says.

I work hard for my money, so I like knowing my money is also working for me.”

MAKE YOUR PROGRAM WORK HARDER

• Study the programs so you understand all the earning and redemption opportunities.

• Get a points-earning credit card linked to your favourite frequent flyer program, but pay the debt off in full every month.

• Become familiar with online shopping portals where you can earn points from everyday purchases.

• If flying on a different airline, consider joining that airline’s frequent flyer program – as long as there is no joining fee.

Source: Point Hacks

Originally published as How to get the biggest benefits from loyalty programs