How loyalty card programs can get you a free holiday

Savvy Aussie shoppers can save thousands of dollars a year using loyalty cards. See how you can get free holidays and discounts on phone purchases.

Half of Aussies are missing out on saving hundreds of dollars a year because they’re not making the most of their reward cards.

The average Australian is signed up to four or five loyalty reward schemes, but for the majority, some of those cards just sit in people’s wallets doing nothing.

Only 46 per cent use all their loyalty cards.

Independent research commissioned by consultant Adam Posner, who is behind The Point of Loyalty, found that Flybuys was the most popular loyalty reward scheme in Australia.

Shoppers can collect Flybuys points at 22 outlets and partners including Coles, Liqourland, Officeworks, Kmart, Target, Shell Coles Express and Bunnings.

Flybuys CEO Anna Lee. Picture: Supplied

Flybuys CEO Anna Lee said her team had tracked down the country’s 50 most successful Flybuys users – called the Flybuys 50 – to share their tips and hacks with others on how to save money using the scheme.

They include roping in your family to help boost your points, earning points while you commute by completing surveys, activating offers on the app to unlock more points, buying groceries offering the most points that week, using a Coles Reward Credit Card, missing a couple of weeks shopping in order to get bonus points to do a big shop, getting points by signing up to associated car and home insurances.

Ms Lee said she has learnt from the Flybuys 50 that the secret to their success is making Flybuys part of their daily routine.

“They check the app daily, activate all their offers and bulk buy, when possible, to maximise their points,” Ms Lee said.

With their points they have been able to buy iPhones, iPads, coffee machines, international flights and experiences such as climbing the harbour bridge.

Megan Silenge, 47, a teacher, from St Leonards in Victoria, is a top 10 Flybuys user.

She and her sister Marijah, 52, pool their rewards points and share the spoils.

Megan Silenge, of Victoria, is a top 10 Flybuys user. Picture: Supplied

By activating offers and using partner redemption points, the Silenge sisters save at least $100 a month converting their points to Flybuys dollars.

“I’ve had Flybuys since 1999, but I started using it strategically two years ago,” Ms Silenge said.

“I activate all the points in the app and by email and we convert the points into dollars and use it as a savings account.

“It’s like a buffer, especially in this climate when prices are going up. It means I can buy that lettuce if the price has suddenly gone up.”

Ms Silenge said she has culled all her rewards cards apart from Flybuys and Myer One as those gave her the most value.

National Retail Association (NRA) CEO Dominique Lamb said loyalty programs are absolutely worth using.

“We know for consumers the benefits can be really worthwhile,” Ms Lamb said.

“The benefit for retailers is understanding their customers, knowing their demographic and using that data.”

Meanwhile, Blackhawk Network, which sells branded gift cards through global retailers, said those wanting to make the most of loyalty schemes should start by checking their existing programs.

“Most of us have, without knowing it, signed up to at least one airline frequent flyer program, one health insurance provider and one big bank,” Blackhawk Network’s Senior Marketing Director Marc Cheah said.

HOW TO CASH REWARDS POINTS FOR HOLIDAY

She saves around $2000 a year through loyalty schemes, never pays full price for the latest iPhone and is flying to Hamilton Island with her husband and three kids for free in January.

It’s fair to say that Julie Wang, 34, makes her rewards points work for her.

“I’ve signed up to more than 50 rewards schemes,” Ms Wang said.

For her Hamilton Island trip she said she had accumulated enough points from using her American Express Qantas card to pay for the flights.

Other times she goes on the Velocity website and looks up which flights are free if you are paying with points and chooses the destination that way.

Julie Wang buys gift cards and also uses her frequent flyers to go shopping. Picture: Sam Ruttyn

The part-time graphic designer from Concord in Sydney’s inner-west, said her family is quite big, so they spend big. But they also save big.

Before she goes to the supermarket she checks all the supermarket catalogues for gift card offers that she thinks is relevant to her – such as Coles, Myer or David Jones – and buys for future use.

“I spend around $400 a month on gift cards, say for Coles. But I save around 10 to 15 per cent on each one, so at least $50 a month,” Ms Wang said.

She also pays for the gift cards with her credit card that also earns her points.

Ms Wang has already bought discounted Apple gift cards worth $2000 ready for when the new iPhone comes out in Australia. When it lands, she will effectively get the latest iPhone for 10 per cent less than the retail price.

She’s also signed up to Giftz on Facebook for the last digital gift card discounts, as well as ozbargain.com.au.

Originally published as How loyalty card programs can get you a free holiday