Club Membership and Loyalty programs - beneficial or just the best marketing scheme?
Posted by: ab
17th Feb 2023 09:55am
When you use a club/group membership card or any loyalty program, do you really believe you're getting something that you couldn't have got, if you'd just asked for it?
Eg I directed a friend to a particular automotive group for his car service. After the price was quoted, he was asked if he was a member, he said 'no, but I have a friend who is'; oh, in that case, let's say 'yes' and he was given the membership discount.
Eg I was a 'Privilege Member' to a hotel group. While I was checking in to the room I'd booked, I overheard a checkin in progress next to me for a non-member who was given a bump up in their accommodation. I didn't see the 'Privilege'. Naturally, I closed my account and destroyed the card.
Are we deluding ourselves when we think that there's an actual benefit that we couldn't have got just by asking?
Eg I directed a friend to a particular automotive group for his car service. After the price was quoted, he was asked if he was a member, he said 'no, but I have a friend who is'; oh, in that case, let's say 'yes' and he was given the membership discount.
Eg I was a 'Privilege Member' to a hotel group. While I was checking in to the room I'd booked, I overheard a checkin in progress next to me for a non-member who was given a bump up in their accommodation. I didn't see the 'Privilege'. Naturally, I closed my account and destroyed the card.
Are we deluding ourselves when we think that there's an actual benefit that we couldn't have got just by asking?
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Comments 61
Jen88
I don't believe some of these are worth it, it seems it just signs you up for the email. Rewardle only works for coffee if their tablet syncs otherwise you don't get the points anyway.
Raj
It is beneficial to a small extent. It takes a long time to accumulate points (like flybuys) to get rewards. Some like Qantas Club is beneficial for (very) frequent travellers.
l0lapx
I dont use loyalty cards, personally I believe all prices up raised to cover these so called Loyalty cards, If you shop a lot maybe, but I dont shop a lot, so stick to place with no loyalty cards and lower prices for same items
lpullman
Bingo.
Someone has to pay to run these schemes. They inflate prices just by existing let alone the price rises to cover "discounts" to members.
lpullman
None of these schemes are for the benefit of customers and if you think it is, I have a bridge in central Sydney you might be interested in buying a share in.
Gallimac
Best marketing ploy ever!
Sarahg8
Some loyalty cards give you an advantage such as being an RACQ member gives you money off your fuel, and flybuys can give you grocery money, but others I do wonder about.
beanbagdan
I only will join a retail loyalty program if there is an immediate cash saving benefit. If i am at the register to pay, and am told that being a 'member' gives me a discount, I will say then sign me up!
Missy Sarah
I like the Woolies Everyday Rewards.
Elly25
I do use them. Recently collected a lucky draw prize of $100
yaso
Which one please?
Missy Sarah
I've been lucky sometimes also to get a lucky draw prize.
wendel
I find them useful, I don't think about them too much, just when I do shop I can earn points and use them to get something free.
richard
I think that the everday rewards from Woolies is good. I don't actively chase points or buy something we don't really need to get extra points, but every month of so I get $10 or $20 rewards towards another shop. The airline ones are good, but often its hard to redeem points for free flights as only some flights are eligible - I think its the flights and times that they cant fill. It nearly impossible to use them for an upgrade these days
hispania
I don't try to use my points for flights. I use them in the airlines shop and have "bought" things like a bread maker, airpods, gift cards for my favourite stores etc. I shop at the sales the airline advertises for their shop and get discounted prices. I know the "experts" say I am not getting the best value using my points this way but the points were free in the first place so I am gaining something I want.
larryboi
I think some loyalty programs or member cards definetly offer things younwoukd not get otherwise. Especially store loyalty programs etc..
pammam
This is true of many loyalty schemes but I have found that some of the hotel loyalty cards offer a genuine discount each time you eat at that pub or those affiliated with their group,
You save on food and drinks and with a Seniors meal as well it makes a big difference,
I also enjoy a free meal on my birthday,so yes,
Some cards do make a difference.
Izzie
I consider the benefits of any scheme before joining. I never think to join one for something I rarely use... And I also realise there are great benefits to the company for getting more info about me - in this day of so many privacy issues, I am reluctant to join any more schemes and give more of my data to a company to constantly target me. There are a couple of memberships that I do consider worthwhile and these are for the two grocery chains I regularly shop with. I try not to go out of my way to buy more just to accrue more points, but sometimes if I consider it to be to my benefit, I will sometimes stock up on certain items that will get used to get to the desired spend to accrue points. Other times I will not. I also am given opportunities to try for free new products - which is obviously a promotion they hope will bring me back to buy more - generally I don't, but occasionally the product becomes a regular purchase. And I end up accruing enough points to get $ off my shop - I never go for the gifts as I find them a rip off. So I agree with Hezzy's comment..
ivory
Usually you are only clawing back what the place has already overcharged you.
ivory
Yep, You can't beat these big companies. They only do things to gain even larger profits.
lpullman
Bingo.
Only its worse, those prices are raised to cover the cost of administering the scheme along with giving discounts.
old boy
marketing scheme
margaretjulia
In most cases ,yes
PGS
Don't ask, don't find out. I have several groups' cards and use them to my benefit. No benefit means no use. I still don't buy or pay more than I have to.
marktime
Not to sure about the airline ones but i get my Woollies Worth $20 every so often from the everyday card.
richard
Yes, I agree - same here !
gwatt
I think they are a marketing scheme but having said that they are a benefit if I earn points for doing what I would have done anyway. some are better than others like telstra plus, flybuys and woolworths rewards work well except for the petrol discounts as there petrol stations are always dearer than other stations arround by more than the 4 cent discount you get. other programms like Amazon prime and Ebay plus work well if you use them effectively as you can easily get more in discounts than the membership cost but they are still a marketing scheme as you need to shop with them on a regular basis to get the benefits. I find airline schemes fairly poor value as points expire so you loose your points before you get enough to redeem
berylr
I am annoyed by the loyalty points being subject to you having activated an offer.
hezzy
I really enjoy reading people comments on this subject. I think we all agree that they are a marketing ploy to get you to shop with them and to buy more. It takes a lot of strength to resist the urge to overspend, but if you can be mindful of not playing into their hands, then loyalty schemes are truly something for nothing. Cashrewards is great.
Izzie
Yes, I really agree with what you say. If you can resist the overspend a few times, it gets so much easier. I don't put too much focus on points, but enjoy the benefits when they become available.
betty
It’s a bit of fun and if you think that you are getting benefits why not just try ,if it works for you or not,I find some membership deals are good.
Jeena32130897
I am not really satisfied by the Club Membership and Loyalty programs so far. It has me hooked, raise my expectations to only let me down. I am pretty pessimistic as nothing claimed has ever happened.
capfantastic
Fly buys definitely help me save money if you pay attention to the app and activate the offers. Same with Everyday Rewards. I think Spud Shed must be the cheapest shopping experience. Aldi also good for specific things like Australian meat and veggies.
boppa99
They work,,especially saving them for flights with fly buys & Qantas Rewards
I have done a number of domestic flys building my points
And 7/11 a fun food & Coffee one ,free reward after your 11th visit
boppa99
Surveys l do for velocity builds a lot faster then food purchases
nette
They're a marketing scheme. Mostly, particular products the company needs to move quickly and want you to buy have a "special buy" that supposedly gets you extra points. They do this to tempt you to buy those products whether or not it is something you would normally choose, so it adds to your total bill, and isn't the bargain you think it is. Sometimes it is to introduce a new product they want people to take up quickly, they do this by not offering a fair price to the new product producer, so, ... you and the producer are the ones who cop the slug, not the seller. We are so brainwashed by marketing we often don't even realise how led we are to purchase certain items. By the way I am in marketing :-))
KennethS
Loyalty Programmes are run for the benefit of the initiating business not the consumer, meant to shut don the instinct to shop round and buy to best advantage
cazter
I am finding that the Rewards Extra purchased program is giving me bonuses that I may have missed out on otherwise. The idea of being able to gain 3 x points for my shopping, 10% off each month for Woolworths and Big W with the addition of a free grocery product each month is worth more than the small sum for membership. So in this case, I am not deluding myself as the advantages far outweigh any negatives.
Ashleigh32083730
I think if you are regularly using a service then it’s great to be signed up and you do receive benefits. For example if you visit a cinema a lot then the discounted tickets and snacks pays off. Especially if the membership is free to sign up for like flybuys or Woolies rewards. You pretty much get something for nothing. But if you’re paying for a membership and you don’t regularly use it then I think it’s not that beneficial as you are not likely to get your moneys worth and if you didn’t have a membership you are likely to be given benefits as a once of every now and then anyway!
squeekums
marketing but used right can get benefits
woolies rewards is good like that, passive use for stuff i already buy that builds to cash of shop
Tragk
Flybuys and Woolies rewards is great, as is the cinema memberships. Cheaper tickets, points that go towards more tickets or food items, and just generally advantages that hopefully I'll be able to use years from now. Depending on the membership scheme, though, some definitely aren't worth it, but anything you regularly spend money on? I'd be looking for a scheme. If you're going to spend money, you may as well get something back.
s
I am a member of woolworths flybuys and as local chemist and a newsagency where I get evert 12th magazine free.
O save quite a bit of money being a rewards member.
adelaidegirl
Yes I totally think that rewards cards and memberships do benefit you , Im a member of Flybuys , Woolworths , and my local chemist plus Amcal and the money you earn and save is very helpful especially now with everything going up and trying to live on a low income ........we have always whenever we are buying something for the house or ourselves say a new laptop we check out all the stores get the best prices and then go to our local store Betta Electrical as we live in the country dont have a lot of major stores up here and they will normally honour that price , of course they also have to suppliers of the product and they will check of course ........so whatever your spending your hard earned money on always ask for the best price ..........cheers Sharon .
Sil sil
I find the loyalty cards where "I'm buying these products" anyway are good, like Woolworths rewards or flybuys. No annual fees and when I reach points I redeem $$ on my hey shop. Frequent Flyer with Qantas wasn't great, pay membership, points expire, with covid they were expired and to get value, you require so many points at times unreachable so not worth it I guess.
Tina1947
Well the old saying is "don't ask don't get" but I do think there are benefits to memberships, you might be given a better room at an hotel, yes that other fellow got the room rate cheaper but was his view onto the back alley and yours was onto the beach.
If the card is free to have (no annual fee) then if you are only spending what and where you would in any case then any benefit is worth it, even if it's only a free coffee after paying for 6 that you would have bought.
emmadave123
Yes, extremely good marketing but do carry benefits. I mainly use Flybuys and Rewards loyalty cards. It's free to join and no one forces you to scan your card. Whether you use the cards or not, you have to go shopping, you have to buy food, you have to buy toiletries etc, that is not a choice. I scan my card at many different places as well, not just supermarkets, First Choice, Bunnings etc....for stuff I'm already going to purchase. I bank all my points for Christmas. I don't try to buy more things but I do use my app and boost specials. I usually have around $200 between the two for Christmas. So yes, If I asked Coles or Woolies to give me $200 free shopping at Christmas, I'm pretty sure they would say no hehehehe, so I am getting something that I couldn't get if I asked for it.
ab
😂 Point well made, I'd have Buckley's trying to extract a free trolley of shopping every year. You clearly seem to have a better 'handle' on the whole thing than I ever did. Thanks for your comment. :)
maryanne62
Love the loyalty cards but some are better than others. i love the ones that offer cash back, life Red Rooster. i love mcdonalds points where i can regularly get a free coffee, i love flybuys where i cash in points for gift cards each Christmas. Woolworths rewards is not as good but great to get some money off shopping each year. I use BP rewards and that builds money that can be used on petrol. Some loyalty programs though are either duds or too much work, so much so the people employed at the places dont even remember to ask you if you have one. the best ones are where the companies involved are fully invested in them and that makes it worthwhile for both parties.
ab
Totally agree...I'm into the small immediate rewards, the stuff I don't have to rack up points for. I am a fan of the occasional free coffee or in my case, the free pizza from my local pizza shop. :) Thanks, Maryanne.
ladylucy666
I think some have benefits, whilst others don't. For me, I don't change my shopping behaviour to benefit from any scheme - if I get a bonus, then whoopie, I haven't spent any extra for it.
ab
Yes! 👍
Thank you, Lucy.
NurseK
This is an interesting subject! I like loyalty programs but am mindful not to spend to keep or climb levels. As already mentioned, scanning your coffee card will eventually lead to a free coffee that you would otherwise buy - every 7th for 7-Eleven! I use grocery rewards cards but ‘game’ the system by not allowing them to know what I spend in full. So while my sister will get a flybuys offer for spend $300 a week for 4 weeks for $50 off, I will get the same offer for $60/70/80/90 and then as it climbs I just stop shopping at Coles for a bit and move to Aldi and Woolworths. I’ll just pop in and shop the half price specials and keep my purchases low until they start sending me better offers. And vice versa with Everyday Rewards!
It takes some time but I feel it’s worth it and I get better value for my groceries.
When we travelled overseas I’d use booking.com and while I won’t pay more to book through them I found them very well priced and as my bookings added up I was getting even better offers and privileges! Free breakfast, late checkouts and upgrades.
Yes, I think it’s worth it as long as you are mindful of loyalty tax and refuse to pay it by always shopping around! 😊
ab
Yeah, you're right, it does take time and it's probably that time element that has jaded my opinion on the whole thing. But you're like emmadave123, you've really thought it through and got it to work for you. Thanks, NurseK :)
Belanna
If you shop at a particular store, then the loyalty card is like icing on the cake. I love Gloria Jeans and purchase one drink at least every week. Scanning the card is a bonus and I get a free drink every now and then.
I use Hotels.com when I travel and have redeemed by free nights with no problems.
Other programs, I'm not using as much as I used to - Priceline or Millers are 2 examples.
ab
Thanks Belanna, I hear what you're saying about Gloria Jean's; I used to enjoy their free coffee's too :) But I don't shop in that complex anymore (long story, don't ask) and haven't seen a Gloria Jean's around my local hang outs, so I turfed the card.
The theme I'm seeing is that most people seem to be taking advantage of the rewards that come to fruition quite quickly, while the notion of securing a return ticket to somewhere overseas is really in the arena of the big spenders... $$$$ in order to rack up the points needed. Thanks again. :)
chickenman
loyalty cards can offer some decent rewards, as long as one does not spend just to acquire more points. only go for points from a "normal" shopping trip. buy items you need, not something just to get points.
ab
100% 👍
Thanks, chickenman.
dvdlcs
I only have the supermarket loyalty cards, which give little back, but 'little' can be better than nothing.
Just have to avoid succumbing to the temptations that they put in front of you: spend $100 to receive 2000 bonus points (worth $10). If I spend less than $90, as perhaps I would have done anyway, I don't get the bonus points but am still ahead because I have spent less.
jtmorri
Of course, it is marketing. It is a case of the brand being in our psyche and therefore the first that comes to mind when we think of that product category. I do believe we are deluding ourselves in thinking loyalty will provide us with benefits. Having a loyalty card is the delusion to thinking the brand will also be loyal to us by offering us a better deal, not the case. This plays out with insurance companies like Budget Direct giving you a good deal the first year to reel you in and then a terrible price increase for the years following, which most people are too lazy to then shop around so take the higher price and renew. You give up so much of your data to be a member, which is useful to the company, so nothing is free. I find the best approach is to look for deals online from specific companies without having to become a member, such as deals at hotels.
jtmorri
Thanks for the reply @ab. Glad to hear some of us have worked it out and won't waste our time for a pittance saving.
ab
Absolutely, jt. A friend and I were talking about something that touches on exactly what you're saying. Why do we stay loyal to the companies we've been with when a phone call away you can achieve savings. The answer? For exactly the Budget Direct experience you're talking about...and as I said to my friend, I don't want to spend the rest of life hopping from provider to provider every 12 months to save $150 or whatever. I believe that there is an intangible thing that comes with loyalty ... goodwill. So, when an unforeseeable event occurs and you turn to your provider for help, they see just how long you've demonstrated loyalty to them and they honor that with goodwill while handling your claim.
Tell him he's dreamin' 😂 Thanks jtmorri, have a great day.