Buying your loyalty
Your guide to the types of loyalty schemes on offer and what they give you
As a journalist, goodie bags and freebies are part of the job and I must say, it’s a part that is most welcoming! It’s not a matter of whether you can afford something or not. Even wealthy stars are known to act like children at the sight of a free gift. It’s the novelty and the excitement of knowing that even though you may shop like there’s no tomorrow, every now and then, something free will come your way. Enter loyalty cards or gift cards.
There’s not just one loyalty scheme out there, there are tons. Seasoned shoppers will carry at least three different cards with many carrying up to ten! So how can you tell which schemes will benefit you as a shopper? Here’s a breakdown to help you out.
Free discount cards
What you get: These cards don’t get you extra products but they will make your pound go that little bit further and they’re free of charge. Though they generally don’t work during sale periods, it’s nice to be privy to a discount all-year round.
What they get: You are much more likely to purchase additional items from that establishment than one without a discount card, even if their prices may be slightly higher than elsewhere.
How it works: Present the card (during non-sale periods) and receive a discount on the total amount due.
Examples:
Mothercare: 15% discount for pregnant women and new mothers during their first year and 10% during the following year.
Prenatale: 15% discount for cardholders. No time limit.
CXC Toys: 10% discount for cardholders. No time limit.
Paid discount cards
What you get: If you’re a fan of a particular shop’s products, then sometimes paying for their loyalty card can be a benefit as in the long run you will recoup the money paid out in the first place via subsequent discounts, which can range from 10 to 30%.
What they get: Firstly, your application fee. Secondly, you provide contact information such as an e-mail address, which more than likely will be added to a database and used to promote products to you in the future. Thirdly, having paid for the card, you are more likely to return to the shop to regain the money you initially paid out. And fourth, people often get caught up in the moment and never regain their application fee in discount value, so the establishment gets ‘money for nothing’.
How it works: Present that card (during non-sale periods) and receive a discount on the total amount due.
Examples: Zone, 25% discount to cardholders at a cost of £30 for the year.
Bonus schemes/ Gift cards
What you get: Ideally, an item you want, absolutely free! Providing that the ‘gifts’ are items that you want or need (for example, electrical), this scheme is wonderful.
What they get: Your undying loyalty until you attain the gift you want, which in some cases – such as a stereo or TV – could take years! Cardholders vie for their ‘prize’, resulting in boosted sales and profits, which far outweigh the cost of giving away the prize itself.
How it works: Present the card at the checkout and receive a certain number of points for every pound paid. Points accrue and have no time limit. Upon reaching the required amount of points for the desired gift, fill out an application form and take it away for free.
Examples: Carrefour, gifts include children’s items, electrical, cookware, clothing, stationery, toys and more.
Alpha Mega: gifts as Carrefour
There is an exception to this sector: In some establishments, points are earned towards a discount on items – no item is completely free of charge. Of course, if you specifically need an item, then a discount of up to 50% can be quite significant.
Examples: Orphanides, discounts available on electrical, kitchenware, clothing, DIY, toys, bookstore and more. In addition, all cardholders with four or more children are issued a 5% discount coupon once a month valid for both food and non-food items.
Pounds for points
This is possibly the best scheme available as it offers you unlimited choice of the establishment’s products to buy as and when you need.
What you get: Vouchers equivalent to cash to use on any product at anytime you wish. Some vouchers have expiry dates (usually by the end of the calender year).
What they get: Your regular custom. It is easy when using vouchers to spend more than the value of the voucher and so be compelled to pay the additional amount. In this way, sales (and profits) are increased.
How it works: Present the card at checkout and receive a certain number of points for every pound paid. Points accrue and have no time limit. Upon reaching the required amount of points for the voucher, go to customer services to apply and receive the vouchers. The beauty of this scheme is that you can use the voucher for any product storewide!
Examples: Debenhams, every 1000 points earns you a £10 voucher.
M&S, every 100 points earns you a £2 voucher.
Beautyline, 100 points earns you a £2 voucher, 150 points a £5 voucher, after which every 50 points earns you an additional £5 voucher (so it pays to save and wait!)
Ellinas DIY, every 200 points earns you £2 discount on any item in the store.
Alpha Mega, Vouchers are available for a range of different stores, services and products. Amounts vary depending on the store.
E&S, vouchers are available for a range of different stores, services and products in addition to those stocked within E&S group stores. Amounts vary depending on the store.
Banks
Named incentive schemes, the banks have begun to clamber onto the bandwagon with loyalty schemes connected to their credit cards.
What they get: Firstly, by using a credit card instead of cash for payments, the establishment where you are shopping is charged a fee of around 3 to 5% of the transaction. The banks gain this money. Seocndly, unless you pay the entire amount owed on the credit card each month, you will incur additional interest, currently around 10 to 11% per annum. The banks will also get this money.
What you get: Paying by credit card is easy, flexible and a lot less psychologically painful than paying by cash. Chances to participate in incentive schemes accrue very quickly if you use a card for most daily purchases.
How it works: Due to heavy competition, the banks have spiralled a little out of control with their incentive schemes, each one trying to out do the next in order to win your valuable patronage.
Alpha Bank: The unique privilege of this card is that it provides automatic cash returns of up to 20% all year round, each time the card is used at a large number of participating shops and enterprises and even during sale periods. For every transaction at any petrol station, island-wide, you will receive cash back to the value of 2% of the amount, which will deposited into your account automatically.
Co-op: for every £10 spent you get 1 point. When you reach 500 points, you get £35 back in cash.
Emboriki: For every pound spent you get 1 point. For every 1000 points you receive a £10 voucher to use at selected establishments (a detailed list is available at the bank) including shops, travel and hotels.
Universal: again, a point per pound, with vouchers available once you reach 2000 points (£20). The longer you wait, the better value the points become as a £50 voucher only costs 4500 points instead of 5000. If you are short on points, you can purchase them for £1.50 (£1.50 per 100 points).
