Finance – Reward Yourself
A guide to accumulating the most rewards, hassle-free...
“There is no such thing as a free lunch”, a popular expression claims. But, savvy shoppers know better. According to a 2018 survey by BrandMapp, a collaboration between a consumer insights consultancy and loyalty consultancy, 75% of economically active South Africans are using loyalty programmes. The COVID-19 pandemic has forced the majority of shoppers to tighten their belts. And, using loyalty rewards is a great way to save money. This means now is the time to take advantage of the benefits of all those offers retailers entice you with.
Some consumers are already using their rewards to ease the burden on their pockets during lockdown, says Johan Kleu, executive head at Momentum Multiply. “Lockdown has certainly changed the way our members use their rewards. We have seen an uptake on shopping for essential goods, and they have also increased their online shopping. As such, we have made adjustments to help our members during lockdown. We are giving them a boost by increasing the value of rewards on the essential goods that they can access during lockdown. We communicated with them, encouraging them to activate and use the benefits available so they can stretch their money and save.”
Read on for useful ways to ensure that you benefit.
KNOW YOUR REWARDS
In order to best make use of rewards, the first step is to distinguish between the different offers. Popular ones include retail loyalty programmes that allow you to accumulate points every time you make a purchase at a specific chain of stores. You can then redeem these points to pay off future spending instead of cash. Most times, the store will also offer discounts exclusively to loyalty members. Examples of retail loyalty programmes include Clicks ClubCard, Pick n Pay Smart Shopper, Dis-Chem Benefits and Woolworths Rewards.
South Africa’s major banks all have their own loyalty offerings where clients earn rewards by swiping their cards, and using various banking products to increase their reward level. Some banks allow you to use the rewards to purchase travel, groceries or electronics while others convert them into cash. When it comes to online shopping, there are definitely bargains to be found. The majority of online stores offer a discount for first purchase; most of the time they require a sign-up to the newsletter, then send the code via e-mail. As this is a one-time offer, it’s better to use it for larger purchases to obtain a significant discount. All the above involve spending money in order to get rewarded. There is at least one company that offers rewards with no money spent upfront – Brand Hubb, an online shop selling electronics, from smart watches and vacuum cleaners to hair dryers and household appliances.
You sign up, then earn rewards by watching videos of certain products and sharing them on social media. The rewards are called MeBucks, and each one is equivalent to R1. After accumulating enough MeBucks, you can use them to fully or partially cover the cost of a purchase. Birthdays are a wonderful occasion to score free goodies. Certain loyalty programmes give perks on your birthday. Ster-Kinekor offers free 2D or 3D movie tickets while Vida e Caffè offers a free coffee. Other birthday offers include discounts and special gifts. So, it pays to enquire directly what these are.
MAXIMISE YOUR BENEFITS
Become familiar with the different reward systems. First, choose which loyalty programmes suit you best, and sign up. Then, do a deep dive into how to get best value out of the rewards system. Anyone familiar with the extreme couponing TV shows will be aware that truly saving money
takes a certain amount of dedication. Research how to move up tiers if they exist – a lot of rewards programmes such as ebucks from FNB allow you to move up to the next level with a combination of spending at their retail partners, and signing up for other banking products.
Sign-up bonuses can easily boost your points, especially with airlines that give away bonus miles especially if you sign up in-flight. Part of making the most of loyalty rewards is deciding when to spend them. When it comes to Smart Shopper points, this varies depending on customer needs, according to Janine Caradonna, media relations at Pick n Pay. “Some Smart Shoppers have been saving their points, and are now using them to help with their grocery shopping. Customers use their points differently – some use them for immediate savings on monthly purchases while others save during the year for a bigger purchase, or for when they really need them.”
SPEND TO EARN LATER
With so many loyalty programmes available, it can be tempting to sign up for everything then spend wildly trying to gain maximum points. There is a certain amount of excitement from watching points stack up and imagining ways to spend them. However, since the point of rewards is ultimately to save money, it is better to have a frugal mindset and focus only on necessities.
Gavin Mkhabela, managing director at STOKVEL INK, cautions that rewards and cashback are only an effective method of cutting costs if the rewards generated are from spending on essentials that you buy on a regular basis. “There is danger in people buying non-essentials only to get cashbacks. It becomes an opportunity cost because you end up buying what you don’t need in order to get a little something back. It can also be a trap around brand loyalty as many people end up missing out on price bargain hunting just because of rewards.” So, select loyalty programmes that fit into your regular shopping habits.
KEEP UP TO DATE WITH CHANGES
Sign up for a newsletter as it will give updated information on ways to earn more, and important changes to the programme. Some rewards programmes, such as Avios, have closed down permanently. Before that, they communicated this to members, giving them enough time to convert the points to other platforms. Keeping in the loop will alert you to changes like expirations, added benefits or new partners.
MAKE LONG-TERM SAVING A GOAL
Having seen that there are concrete ways to save money and gain perks simply by shopping, consider shifting some fiscal habits even after finances have recovered to ensure that saving becomes a long-term habit.