Is there any point to points?
Do not put too much store in the benefits of loyalty schemes, says Andy Webb
SAINSBURY’S has recently come in for some flak from customers angry that the annual ‘Nectar Double Up’ event won’t run in 2021. Meanwhile, some of my favourite ways to ‘boost’ Tesco’s Clubcard points have disappeared in recent years, and Morrisons controversially dropped its entire points-based scheme back in May.
Instead, all three supermarkets have shifted focus to giving loyalty members extra discounts on popular products.
So are points now pointless? Well not quite. If you can earn them on your spending then I still would. But I wouldn’t put too much focus on these schemes and I’d never shop somewhere just for the points – they’re just not worth much.
You’d need to spend £100 at Tesco to get £1 back in Clubcard vouchers and double that at Sainsbury’s for £1 of Nectar points. Boots is more generous – a £25 spend will earn a quid in Advantage points.
Yes, all are better than nothing, but only if the contents of your basket aren’t available for less elsewhere in the first place. So choose your supermarket based on something other than a scheme – whether that’s price, location or quality.
Sticking with supermarkets, we’re about to enter the payout period for Christmas savings schemes.
With these you put money away month by month and by winter you’ve a pot of cash available to spend on your festive feast. It comes with an extra boost of up to six per cent. Far better than what you’d get in a savings account. Sounds good, right?
Well, I’m not a fan of these if you use them as they’re designed. For a start, the money isn’t protected – it would be in a bank – and you can’t access it earlier in an emergency (again, you could if it’s held in a bank). But there is a way to avoid these risks and still get the added free cash.
With each scheme you can actually pay in a lump sum right before an autumn deadline rather than throughout the year. Your savings plus the top-up bonus will be paid out as a gift voucher, so make sure you don’t put in more money than you can spend – some of the vouchers will only last until the end of the year.
The key deadlines are:
Tesco: October 20
Morrisons: October 30
Sainsbury’s: November 1
Asda: November 21