Introduction to Loyalty Programs
Definition of a Loyalty Program
A loyalty program offers incentives or rewards for
purchasing from an affiliated partner. These incentives can be
in the form of cash back, points that can be redeemed for
prizes or merchandise, or "miles" that can be used
to purchase airline tickets.
Purpose of Loyalty Programs
These programs are designed to alter your behavior to
purchase more of a product or service than you would in the
absense of the loyalty program.
The program hopes to ingrain a pattern of behavior
where you will prefer to shop at the stores affiliated with
Many programs also track your purchasing behavior, so
they can assess and sell this information back to the
affiliates of their program.
Which Loyalty Programs Are For You?
This is a personal choice, but it probably makes sense
to pick one multi-purpose program as your primary program so
that you can reach the highest reward tier quicker then when
spreading your activity across multiple programs.
Miles and Aeroplan
are the two main multi-purpose programs. If you are looking
for simplicity, then a good strategy would be to obtain a credit card affiliated with one of these
and look for opportunities to shop at affiliated vendors.
If you're willing to put in a little more effort then
you can often reap substantial benefits by also participating
in some of the more specialized programs.
Loyalty programs can be as valuable a tool to the
consumer as they are to the provider, if you take the time to
understand the programs and the value they can provide to you.
Stay tuned to this site to learn how you can get free
food, discounted gift cards, and more!