What are loyalty and reward programs, exactly? This is a question that you rarely hear people ask when they are presented with the opportunity to join one even though, surprisingly, many do not know what exactly these rewards programs are and how they can benefit you as a consumer.
Typically if a store associate asks the customer if they would like to participate in a rewards program, the customer automatically declines because they assume it is a scheme.
Although these programs are a way for companies to attract more customers, they can actually be extremely beneficial for the customer, too.
By definition, loyalty programs are offered by retailers as a way to attract and retain customers through rewards, discounts, and other exclusive incentives. Many retailers and corporations offer loyalty or rewards programs.
You can even evaluate these various rewards programs by researching the specific benefits of certain rewards programs. For example, reading Allstate Milewise reviews can tell you how this insurance loyalty program can help you save money before joining.
If after reading reviews you are still undecided on if a rewards program is ideal for you, here are some other reasons why reward programs are for everyone.
Reward Programs Increase Your Net Worth
A person’s net worth is the dollar amount of their assets minus all of their debts. To calculate net worth, you subtract your debts from your assets. When your assets equal more than your debt, you will have a positive net worth.
In order to increase your net worth, you will need to decrease your debt, and rewards programs can help consumers do this.
Participating in rewards or loyalty programs can present a consumer with a number of opportunities to save money. They can then apply the money they save to their debts which ultimately will increase their net worth.
One of the reasons you may be in debt is that you spend too much money in retail stores, so rewards programs can also remedy this issue if it applies to you.
Rewards Programs Help You Save More Money
Following the three R’s of budgeting your money is one way to save, but rewards programs can be just as impactful. Comparable to the benefit mentioned above, you can save money when using a rewards program. The money you save can, of course, be used towards debt to increase your net worth, but it can just be applied to a savings account as well.
Whether you are saving for a vacation, a home, or just preparing for the future, the few dollars you save or earn within loyalty programs will gradually increase your savings over time.
Even if you are not earning extra money or actively saving, these programs can help you cover essential costs on a reduced budget during times when money is tight. You can typically cash out at any time, so the extra savings can be just what you need.
Rewards Programs Offer Exclusive Gifts and Products
Every now and then, a loyalty program may offer exclusive gifts and other products to their loyal members. Receiving surprise gifts or products can be beneficial to one’s mental health since gift-giving and gift-receiving can boost a person’s self-confidence and mood.
As we all probably know, gifts don’t have to be a huge chunk of money to make someone feel good. So you could be positively impacting your mental health and making a day in the future better by participating in a loyalty program.
Rewards Programs Often Have Seasonal Rewards
October through January tends to be the time of year when people spend the most money with retailers because it is the time when you have the majority of the holidays in the year. Christmas is a holiday that receives a lot of fiscal attention, and seasonal rewards can help reduce the financial burden associated with the holiday season.
Aside from the regular rewards and discounts that these programs offer on a regular basis, they may also offer extra rewards, incentives, gifts, and discounts during the holiday season. This can be a game-changer for those who are usually scraping nickels and dimes to meet their seasonal goals or buy gifts for loved ones.
Reward Programs Have Surprise Rewards for Members
Just as receiving exclusive gifts and products can brighten someone’s day, surprise rewards for reward members can be just as thrilling. There are times when a retailer will offer additional rewards on top of their normal rewards, and sometimes, these surprise rewards come at the perfect time.
As a person who uses rewards programs for just about every retailer I shop through, I find that I am always being offered an extra discount or reward at the very moment I am interested in spending money with said retailer.
Instances like these always leave me feeling joyful, and they always brighten my day.
Reward Programs Provide a Sense of Comfort
The financial and mental benefits associated with using a rewards program are amazing, but what seals the deal for me is the sense of comfortability. I tend to shop at the same stores, like Target and Publix, so it is comforting to know that I will almost never pay full-price for items.
With stores like Target or Kohls, there are always offers for discounts on certain items. Even if there are no discounts available, I usually have accumulated enough reward points that lower the total of my check-out cart.
There is also a sense of comfortability when you know you can go to the same store and get the same items you use on a daily basis at a discounted price. You do not have to worry about shopping around, driving long distances to find your product, or worrying about a product with poor quality.
Rewards programs connect you to retailers on a personal level.
Find the Right Program for You
Now that you have a layout of all the benefits of participating in rewards problems, you may be wondering how to choose the right rewards program to join.
Here are some questions to ask yourself before joining a retailers loyalty program:
- Is this company looking to grow a personal connection with my spending habits?
- Do I shop with this retailer frequently?
- What types of discounts, rewards, and other incentives does this retailer offer in their program?
- Does this retailer offer competitive prices with their rewards program?
- Does this customer have a good customer base?
- Are the reviews for this program good or bad?