Is your loyalty scheme worth it?

With inflation at its highest rate in five years and further interest rate increases on the horizon, it is definitely time to count your pennies and reduce costs wherever you can. Instead of simply cutting back on expenses, why not take advantage of the numerous loyalty schemes available to you?

There are several loyalty schemes available that can help you save costs when buying flights, groceries and even petrol. Instead of just joining every single loyalty scheme available, take the time to do your research and make sure that you maximise the savings you can earn through just a few loyalty schemes.

When you are evaluating a loyalty scheme, there are certain factors you need to consider to make sure it is the best fit for you.

CostsFind out upfront what the costs will be. Make sure that the costs you take into account include sign-up costs, annual fees and any minimum spend required before you start receiving benefits.

Rand valueCalculate the rand value of the benefit you are receiving and then compare the rand benefit of two similar programmes to decide which one offers you the best value. For example, Clicks offers you one point for every R5 you spend while Dis-chem offers you 15 points for every R10 you spend. You could be forgiven for thinking that Dis-chem offers you the better benefit. But if you then take into account the actual discount you receive, you will find that Clicks offers you a R10 discount per 100 points that you have earned while Dis-Chem offers you a R10 discount for 1 000 points. That is a big difference!

Expiry datesFind out if and when your points expire. If you receive discount vouchers that you have not used and you lose them, check with the service provider if they can reprint them for you.

AccessibilityLook at the footprint of the store that is linked to the loyalty scheme. Is it convenient for you to use? Are there several different stores within the chain that are accessible to you? If you have to go out of your way, it might not be worth the effort.

Do the work to reap the rewardsIf the loyalty programme you are considering offers a tiered reward system, make the effort to find out what you need to do to get to the highest earning tier. Often it involves simple steps such as an online questionnaire. It will take just ten minutes of your time and the difference in the rewards you earn can be quite significant.

Our top picksThere are literally hundreds of loyalty rewards programmes that you can use – from the one at your favourite take-away to your grocery shopping and everything in-between. These are just a few of the top loyalty schemes we felt offer great value:

• Clicks Clubcard
• E-bucks
• Discovery Vitality
• Pick ‘n Pay Smart Shopper card

Ideally, you should belong to rewards or loyalty programmes that you can use in different industries. For example, identify one programme that you can use to reduce your pharmacy costs and stick to it. Use a different one for groceries, one for fuel rewards and another for gym benefits. If you can find one loyalty programme that offers you more than one area of benefits, that’s a keeper!