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Festival of Obvious Ideas #4. “Loyalty” is a hoax

Lucy Kippist

by Lucy Kippist

18 Oct 05:50am

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Filed under: Consumers, Festival Of Obvious Ideas, Loyalty Cards, Society

92 comments

There is too much fake stuff in today’s world. You have to look twice to tell if a woman’s breasts or lips are really her own. And show me a packet of BBQ chips that’s been anywhere near a BBQ.

Do you have fly buys? NO I BLOODY WELL DON'T!

Yet somehow, we are still suckers for companies who pitch old-fashioned concepts like “home made”, “authentic” and “loyalty”.

So-called loyalty cards are meant to make us feel special. If we fly with Virgin Blue all the time, or shop at DJs by habit, we feel entitled to feel special, and to be rewarded. Companies know this, hence the proliferation of loyalty programs. Yet as we all know deep down, that’s a load of crap.

Not only are these cards a rip off, but the companies in question couldn’t care less whether we lived or died. Loyalty is a Labrador that waits for you to come home every night, or a friend that never forgets your birthday. It is not and never will be a commodity that comes with a plastic card and is divisible by points.

Shopping centres and marketing people work hard to convince us otherwise. You’d have to be living under a rock, or be a highly committed internet shopper to have checked out a sale at the cash register without being asked if you’d like to join the loyalty program.

“Each time you shop, we’ll give you a point,” says the enthusiastic shop assistant, straining to be heard over the din of in-store music. In reality, the tiny card will just cost you money.

According to a recent Choice magazine survey, consumers with loyalty cards spent between $50 to $100 more on each transaction. Despite this, we constantly come back for more.

Loyalty cards also encourage us to shop more. We justify the extra $30 at the checkout because of the points we’ll get. “We’ll use it for our flights to the Gold Coast next year,” we tell ourselves. Pity it’s so easy to forget to use them before they expire.

How about all that personal information you scrawl across the “introduction form”. You might think it will benefit your long-term shopping needs, but it won’t. Loyalty programs are not a two-way street. Marketing companies eat your personal information for breakfast. It helps them understand just what makes you tick, so that the next time you feel like shopping up a storm, they can reel you back in. You just end up spending more than you intended.

If you’ve already fallen prey to a couple of these programs, don’t panic. There is a way out. First, grab your wallet and rip up any existing loyalty cards. Then, next time you’re asked, look the sales assistant square in the eye and be proud to say no. Why? Because you’re smart.

Don’t be like the guy in that Virgin ad, being all smug and self-important because his boss sends him on meaningless work trips and the girl at the counter remembers his name when it flashes across the screen.

Real happiness is standing up for what is real and good. Real freedom is not buying into all the in-authentic crap that’s constantly being shoved in our face. Save your time and money for the real relationships in your life. You know, the ones that don’t demand regular purchases of $50 and over. Or end every conversation with, “Have a nice day.”

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92 comments

Show oldest | newest first

    • acotrel says:

      05:02am | 18/10/11

      When Telstra was privatised, there was a loyalty share issue for employees.  After several shareholder meetings where the managers stood up and answered dorothy dixers for several days, the employees expressed their confidence in, and love for their company.  Many have sold their shares.

      Reply

    • TimB says:

      07:28am | 18/10/11

      This just in, shareholders sell shares.

      More on this breaking story as it happens.

    • VVS says:

      08:04am | 18/10/11

      @ TimB

      My world… rocked! Say it aint so!

    • Ben C says:

      10:36am | 18/10/11

      @ TimB

      Omigod, omigod, omigod, tell me more, I need to know more about this interesting development!

    • TimB says:

      01:10pm | 18/10/11

      We’ve just recieved reports that some of the people who sold their Telstra shares, then used the proceeds to invest in *other* shares.

      Amazing scenes down here on the stock exchange floor. Back to you in the studio Acca.

    • seniorcynic says:

      05:12am | 18/10/11

      I have a number of these cards, most of which I rarely use, the exception being Home hardware card which equates to a 5% discount on your purchases. I don’t spend any more just to get points but do go to Home hardware before checking out Mitre 10. We don’t have a Bunnings in our town.

      Reply

    • Tina says:

      06:44am | 18/10/11

      I love my loyalty cards. I have about 5 from my favourite stores (mostly shoes and clothes). I spend my money there anyway and when I spend more than 500 NZD then I get 50 off the next purchase for example or 15 % off on the next two purchases. As I like to shop it is fine with me. Whats wrong with getting a third pair of shoes for less?

      And I know they record all my personal data and stuff, but I couldnt care any less if someone knows my email address or how many pairs of shoes I have.

    • reddragon says:

      08:00am | 18/10/11

      @Tina. Wildpair Wellington Or Taylors?

      Nah, rather see you more at Wildpair.

      Mine is Crosby, woof. No need for a loyalty card there, just a lack of fashion sense.

    • Tina says:

      08:23am | 18/10/11

      @ red dragon

      Mi Piaci Wellington

    • reddragon says:

      09:08am | 18/10/11

      @Tina, for two pairs of Alida I can get a return trip to Toronto and a visit to the Bata Shoe Museum. Great shoes though.

    • old fart says:

      10:42am | 18/10/11

      count yourself lucky you dont have a bunnings Once they are in all sorts of business disappear, hardwares, garden centres flooring. No competition and when that happens their prices are not that good

    • acotrel says:

      05:18am | 18/10/11

      I understand a certain French company in NE Victoria offered shares to its employees.  The Victorian Civil Ambulance was tied up for hours ferrying to hospital , the people injured in the rush to get them,!

      Reply

    • Matt says:

      05:20pm | 18/10/11

      Do you have any comprehension of the word “relevance”?

    • S.L says:

      05:46am | 18/10/11

      A young bloke at work is looking to buy his first home and sort the boss (me) out for advice.
      Firstly I told him to steer clear of lending institutions and head to a Mortgage Broker as they can shop around for the best deal.
      Secondly I told him to tell them where they can stick their “honeymoon period” at the start of a loan. I said to him “if you can’t afford the real rate don’t get a loan at all!
      His eyes were the size of dinner plates after I explained how the percieved discount in the “honeymoon period” is tacked on at the end of the loan and it’s only there to suck you in!
      As the saying goes “there’s no such thing as a free lunch!”

      Reply

    • Bored says:

      06:53am | 18/10/11

      Oh my god, the best advice you could give your “young bloke” is to ignore anything you say as you obviously have no idea of how finance works

    • TIna says:

      07:18am | 18/10/11

      I love free lunches!!

    • Sam says:

      07:53am | 18/10/11

      Mortgage brokers simply compare products, somethimes they come up with your best option, sometimes they don’t, it usually depends on which financers they compare.

      Banks white label, so while the mortgage broker may say “Super Duper money gives you the best rate”, Super Duper is shelf company operating through a trust with ANZ supplying the majority of the finance. Following the GFC the shelf companies had to stump up a larger percantage of the financing, hence the drop in the number of companies doing it.

      Honeymoon rates do not get extra interest tacked on at the end. Honeymoon rates generally apply to variable interest mortgages, after 1/2/5 years at (say) 1% off you go on to the strandard variable rate. As part of a deal you may get a better overall rate or a cheap rate credit card without a honeymoon period, but it is not guarenteed. Look for Comparison Rates rather than the headline rate.

    • acotrel says:

      09:04am | 18/10/11

      @Tina
      You probably like the part where you pay for them, the best ?  You sound like my kind of woman.  The best thing I do in my life is to take my flash tart out to lunch, wnen she’s not away looking after poor old mum in Melbourne.

    • Tina says:

      10:38am | 18/10/11

      @ acotrel

      I was actually thinking of corporate lunches and not making a man pay for me. But thanks for thinking so highly of me.

    • Sarah says:

      12:08pm | 18/10/11

      Mortgage brokers choose whoever is going to pay them the best commission!

    • Babe in the Woods says:

      12:17pm | 18/10/11

      @actorel.  What did Tina do wrong?  I like free lunches too.  My work put on plenty.  Why attack her?

    • Lola says:

      01:35pm | 18/10/11

      Holy dooley. A broker works on commission. Just like insurance broker. Most are on commissions and only source quotes from a range of their banks and financiers etc.  Whilst I agree that going to a broker is easier than doing the homework yourself, particularly if you are pretty useless with organisational skills however, brokers can get loans pushed through for ridiculous terms and conditions just so they can get their commissions and don’t really give a rats about the customers.

      I know a guy who tried to get a loan through the bank directly. Was declined. He then went to a broker. The broker get heaps of terms changed like getting his parents to go guarantor and that he needed a massive deposit (borrowed from parents) to even get the loan approved. He couldn’t afford the repayments and relied on ‘friends’ renting from him to get the mortgage paid. Did they pay him? Nope. Did he lose his house? Almost. He managed to sell it before the bank foreclosed it.

      Tell your employee to get a broker. A good one. And don’t sign ANYTHING that you can’t afford. Getting a default against you is not good.

    • Woff says:

      06:46am | 18/10/11

      So long as you buy only want you want and not extra, just to get more points, something like FlyBuys is not an issue. The Coles, Shell, etc where you get the points, charge you extra to offset you having the card, and any benefits it may derive, so in not having the card you are ripping yourself off if you shop there. Since Coles was the only local supermarket I had for years, I was shopping there anyway, and I would have retrieved several hundred “reward” dollars from their program over the years.

      Of course if you spend madly just to acquire points, do the maths and I totally agree with your article.

      Reply

    • Kebabpete says:

      07:11am | 18/10/11

      I still travel quite a bit, and as the options domestically are pretty limited I have a credit card that gives me Qantas frequent flyer points on all purchases, plus it doubles the points when I shop at Woolworths owned companies. I manage it the same as I would cash so it never gets out of hand and it works quite well for me. I really haven’t seen any other card that is worth the hassle.

      Reply

    • marley says:

      07:24am | 18/10/11

      I have a card for my local purveyor of coffee beans.  When I hit the 10 kg mark, I get a kilo free.  Does this count?

      Reply

    • Robinoz says:

      07:26am | 18/10/11

      My wife has an NT Seniors Card and a Carer’s and Concession Card (every woman 60 is entitled to) and it gets us some great discounts on our electricity, car registration etc. Men get it at 65, which is terribly discriminatory, but I don’t mind. That’s the sort of loyalty card that is actually worth something substantial.

      Reply

    • Oingo Boingo says:

      08:11am | 18/10/11

      Not really a loyalty card…

    • smith says:

      10:14am | 18/10/11

      Sexist as hell, Women live longer so effectively they get a better deal at both ends.

    • Tina says:

      10:54am | 18/10/11

      @ smith

      Just make sure you always kiss your woman good night and I am sure she will let you use her seniors card grin

    • Free Whales says:

      11:54am | 18/10/11

      “... they get a better deal at both ends.”

      I am so bad. So very bad.

    • Tina says:

      07:32am | 18/10/11

      At some shopping centres or large stores (IKEA for example) they have people that follow you and note down your movements in the store and what you look at and what you pick etc etc. I know that is kind of odd, but they do it to optimise their layout and product range and stuff. Its win-win for both. They make more profit and I get a better shopping experience.

      Reply

    • iansand says:

      08:30am | 18/10/11

      I have often wondered why IKEA stores are festooned with skeletons covered in spider webs.  It’s not THAT hard to find your way out.

      IKEA shops are optimised for only one thing.

    • Kebabpete says:

      08:45am | 18/10/11

      Having just set up a new home in Oz I worked out the tick to IKEA. Look it up online, input your local store, get the location from the website, and then go in the store via the check outs and straight to the shelf your product is on. Then use the self serve checkout that everyone else seems to be scared of.

      My record is in and out in 4min!

    • Conduit says:

      08:50am | 18/10/11

      And this has what to do with customer loyalty card programs? Or did you just feel the need to amaze us with your internal working knowledge of Scandinavian designed furniture outlets?

    • Tina says:

      10:44am | 18/10/11

      @ Conduit

      What a wonderfully nice person you are! I meant to comment on marketing strategies. As we know one major purpose of loyalty cards is to track customer behaviour and their shopping. And this is another way of doing it. But if you like I can enlighten you with my knowledge on their loyalty cards as well?

    • AFR says:

      01:50pm | 18/10/11

      Kebabpete - you didn’t stop for the $1 hot dogs?

    • ibast says:

      07:41am | 18/10/11

      Flybys have never been worth it.  That was pretty obvious from the get-go.  Now I just get annoyed when they waste my time asking for it.

      Frequent flyers used to be worth it but QANTAS have become mean in recent years.  I fly reasonably regularly, have been saving them for a number of years now and I can basically get an electric fry pan.  Once I would have had an international flight up my sleeve.

      Reply

    • Matthew says:

      11:53am | 18/10/11

      Coles has started installing self serve checkouts.  They don’t ask for fly-bys or sports for schools or any other rubbish.

      Unfortunately all the time saved is lost by the fact that you have to wait 10 mins for someone to come compare your signature on the credit card or getting stuck behind the fat woman with 3 trolleys full of junk food.

    • Jane2 says:

      01:45pm | 18/10/11

      Easy to solve Matthew, use the old fashoined thing called cash.

      I love self serve, its so much faster than the normal checkouts. I said this to staff at coles once and their response was “its not meant to be”, maybe not but if you are an effecient person who isnt afraid of tech you can get out of there much faster, even if you are looking up fruit etc because atleast you know what you have bought! [The number of times I have had a teenager ask me what something is! Particluarly annoying when its on the label and all they have to do is read!]

      Self checkout also has teh huge benefit of your bags being packed teh way you want so no more crushed bread even though you purposely put it last.

    • ibast says:

      02:42pm | 18/10/11

      I’ve never had self check out work properly for me.  Something always goes wrong.  Either it can’t read a product, it doesn’t like the way the bag is sitting or it can’t read my card.  Inevitably I’ve had to have someone come over and reset things for me.  May as well went to the checkout.

      Besides, it kind of annoys me to have to go to a shop, queue up, do someone-elses job for them and pay the same price anyway.

    • Anna C says:

      07:47am | 18/10/11

      Here’s a newsflash for retailers. If you want your customers to stay loyal to you then you should drop your prices and provide good customer service. This is what customers really want not these bullshit loyalty schemes that just don’t add up.

      Reply

    • trentyn says:

      08:37am | 18/10/11

      I’d settle for the service…. would even pay more to get it.

    • Julian says:

      09:38am | 18/10/11

      trentyn - Its hard to provide both low prices and good service. I’ve worked in retail - customers always say “I’d pay more for better service”, but in reality they will cross the street, line up for two hours, complain about the service, all to save 50 cents! Have you ever been in a Petrol Station, the only one there, filling up your car, only to notice the Servo across the road is packed, people lining up - oh, that’s why, their fuel is 2 cents a litre cheaper, a whole 2 cents! That a whole $1 on a $75 purchase. Reminds me of the Bonds workers who were picketing because their factory was being closed down, the reporter started asking workers where there clothes were made, all were wearing chinese made, cheaper clothing, not the Bonds. NO SUCH THING AS LOYALTY, CARD OR NOT, THE MAJORITY OF PEOPLE BUY BASED ON PRICE.

    • Tina says:

      10:47am | 18/10/11

      Some loyalty schemes really are no good. But the “every tenth coffee for free” or “every 5th cinema visist half price” arent bad and easy to understand.

    • Chinaski says:

      01:38pm | 18/10/11

      I buy from a store in Perth all the time. It’s a smaller business that has a lot of porducts I like. Every time I buy something I have to get it mailed out because I live in a regional part of WA. Every time something’s mailed out, it gets here the next day. The staff are always friendly and ready to help with anything. When I lived in Perth I could visit the store and chat with the workers for ages about a range of things. THATS customer service - something a lot of other stores lack.

    • mahhrat says:

      07:47am | 18/10/11

      Damn, I thought this was a chat about loyalty in general - loyalty to good customers, to landlords, to tenants, to your boss and your boss to you.

      There is no such thing as loyalty any more.  Not enough people think that far ahead.

      I really want to be loyal - I’m built that way - but my workplace won’t reward me for it with anything except more work.

      Once you realise that your self worth isn’t defined by what some other shrub behind a desk thinks of you, it’s so liberating.

      Reply

    • Babe in the Woods says:

      08:21am | 18/10/11

      That sounds like a pretty sad place to work.  We have two way loyalty here.  I do my best and in return my CEO has always done more that his fair share.  We are treated with respect and courtesy.  Yes, we have had people who try it on, but they don’t last long.  So yes, for me I still see loyalty in the workplace.  I guess I am just lucky.

    • Mahhrat says:

      10:07am | 18/10/11

      @Babe, I have worked for a lot of places where loyalty is king, and it’s wonderful.  The ADO calls is “espirit de corps” and is commensurate with morale.  It’s just good business.

      What I’ve realised is that I’m a worthwhile person to have in an admin setting, it’s no longer determined by anyone except me.  It’s kinda nice, actually.

    • Babe in the Woods says:

      12:21pm | 18/10/11

      @Mahhrat, I understand what you are saying.  I know my own worth as well and am comfortable with who I am.  However, it is nice to be respected and appreciated.  At least I think it is.  And I must admit that as this is a two way street, I am happy to work to my maximum.  Now, I know a good professional person would say they always do, but I have had absolute pigs of bosses in the past and the truth is my attitude was pretty poor.  If they don’t value me, why should I value anything but the paycheck.  I did exactly what I was paid to do, and did it well, but there was no give.  Maybe that is selfish, but I think it is pretty natural.  Anyway, I like where I am.  They are not my friends, we don’t mix on weekends etc. but it is a vibrant and positive place that I enjoy.  Lucky me eh?

    • Adam Diver says:

      07:54am | 18/10/11

      I scanned the article and I think I missed the obvious idea. Can anyone help me out what was the actual idea?

      Reply

    • James1 says:

      12:29pm | 18/10/11

      Oddly enough, the point of this article is only in the headline.  The body of text really adds very little.  On first reading the headline, (like me) you probably didn’t read beyond the “#4” before reading the article.  I actually had to go back in finish reading the title to work out what idea this contained.

    • Markus says:

      07:55am | 18/10/11

      The ultimate story of loyalty:

      http://en.wikipedia.org/wiki/Hachik?

      Those not familiar with Hachiko may be familiar with the Futurama episode based on him.
      Likewise, anyone not moved by this story is a heartless bastard smile

      Reply

    • werthers says:

      02:04pm | 18/10/11

      im not saying the dog wasnt loyal but i think the other passengers feeding it might have encouraged the loyalty a little

    • Budz says:

      07:59am | 18/10/11

      I shop at Coles most of the time for groceries, but it isn’t really by choice. It just happens to be the closest to my work and home. I do use a Fly Buys, but it certainly doesn’t make me buy more.
      The way I see it these Fly Buys are the same as the 4 cents of fuel offer. They just slightly increase prices all over the store to make up for this. But the question I ask you all is aren’t you worse off if you don’t take advantage of these offers because you are paying for it anyway?

      Reply

    • BF Skinner says:

      10:23am | 18/10/11

      Whether consciously or not you are now more inclined to shop at coles. If you move house or job, you are more likely to stick with coles even though it may become less convenient. You also will be come more likely to do all your shopping in the one store rather than go to the butcher, grocer etc just get it all from coles. Even if this does not happen to you personally it just has to happen to a small enough % of customers to make it worthwhile.

    • Babe in the Woods says:

      08:00am | 18/10/11

      My cafe downstairs has a little card that I get stamped every time I buy coffee.  After 8 I get one free.  It works.  All the coffee around my part of the city is pretty much the same, so I shop there.  This is a loyalty card, sort of, and I like it!  (Yes, it is a free lunch as I only have coffee for lunch).

      Reply

    • Kika says:

      09:59am | 18/10/11

      You only have coffee for lunch? How does your bowels like that?

    • Babe in the Woods says:

      12:25pm | 18/10/11

      @Kika, thank you for your concern about my digestive system.  I would describe the process entirely but I am afraid it might be a little indiscrete.  However, I will say that I no longer need the All Bran challenge.  Has that made you happy?

    • Trav says:

      08:17am | 18/10/11

      I can’t stand these schemes.  Discount or no discount, nothing screams ‘bogan’ more than a wallet stuffed with tattered ‘buy 20 coffees get a free muffin’ cards and a kilo of plastic loyalty cards.

      Reply

    • Conduit says:

      10:24am | 18/10/11

      You often going through other peoples wallets? As far as I can tell that’s the only way to tell what someone else has in them.

      Mate I think you might have bigger problems than loyalty cards.

    • angry says:

      10:26am | 18/10/11

      The worst thing about it is it slows the entire cue down to a halt. With everybody paying cash it moves like a treadmill. With everybody paying on their credit card and loyalty card it adds an extra 2 mins or so per transaction. Especially as most double carders don’t have the sense to actually get them out and ready while the goods are being scanned.

    • Tina says:

      11:03am | 18/10/11

      angry

      Do you get upset at people that get off at bus stops before yours because they are costing you time?

    • benni says:

      08:33am | 18/10/11

      Foxtel called me yesterday, since I’m such a loyal customer, they wanted to offer me more equipment, but for only half the regular price!  I felt so special.. it’s a pity I only have 1 TV so can’t take advantage of that amazing offer…

      Reply

    • Anonymous says:

      08:33am | 18/10/11

      From someone who used to work as a data analyst for a credit provider I think people should know that most loyalty cards are actually a front for a consumer behaviour and market research database. By “registering” your card online you provide the company your demographic details and they can then track your exact shopping behaivour. It lets them see how often you shop, how far you travel, how much you spend and how you respond to promotional or items on special. The points and giveaways are a much cheaper than having ot pay for the equivalent market research data that loyalty cards produce.

      Reply

    • Mario G. says:

      02:20pm | 18/10/11

      ABSOLUTELY CORRECT!

      Woolworths and Coles cards are the greatest intrusion to personal privacy ever, and would make the KGB look like boy scouts!

      Before the corporations started looking at “micro-tracking” consumer behaviour, laws were already in place limiting the “cross-pollination” of consumer credit card info.

      So they invented the “loyalty” card and now they can correlate every single purchase you make against the complete customer profile you are forced to submit to when you sign up:

      Where you shop, exactly when you shop, medical and personal items you buy ... on and on it goes.

      If governments tried to introduce an Australia Card, we would be very, very concerned; yet we accept the exact same offering from corporations with even less public scrutiny!

      CUT UP YOUR LOYALTY CARDS TODAY!

    • marley says:

      03:01pm | 18/10/11

      So, loyalty cards are used for market research.  That’s no surprise.  It’s just a more sophisticated version of the local butcher knowing you like your steaks thick cut.

      I mean, what’s the problem with woolies knowing that I buy pasta and asparagus on a regular basis?  If that means they stock better quality pasta and import asparagus in the off-season, that’s fine with me.

      I don’t think my purchase of some of my staple products at woolies is giving them much of an insight into my political beliefs, the state of my bank account, my travel plans or who I might be shacking up with.

    • subotic says:

      08:35am | 18/10/11

      I’m loyal to the bottom line, which is usually ON-line and certainly not made in Australia. Sorry Dick Smith, but that’s just the way it for little people and for those who are punished for trying to get ahead.

      Loyalty is for suckers.

      Reply

    • Alistair Erskine says:

      08:38am | 18/10/11

      I always forget my card for the local chicken shop or burrito joint. Which is a shame, as im sure I would have got the 8th stamp by now and earned myself a free burrito.

      Reply

    • Graham O'Connell says:

      08:52am | 18/10/11

      By simply reading the comments one can understand that there are more and more pro-loyalty consumers out there today than there has been in the past. Part of the reason is that the thought “FlyBuys is going to steal my data and give me nothing back” is obsolete. I’m not saying FlyBuys is great, but it is often used as the face of loyalty and rewards programs in Australia. This might have been the case in the 90s, but loyalty has moved on.

      The points-based systems that equate to next-to-nothing (often as low as 0.6% when redeeming for gift cards) are really only for credit cards, frequent flyers, and the big supermarkets.

      When you’re talking about points from a retailer perspective the reward jumps up to around 5% equivalent [1], some programs 10% [2].

      Furthermore, loyalty is moving away from points. Programs are offering monthly deals that are exclusive to members that offer higher discounts at sale time, 20% off, or even exclusive member pricing [3]. So the programs might not appear to offer a lot up front, and this is why they get excluded from comparisons and surveys because they are hard to quantify. That doesn’t mean all these programs aren’t valuable.

      Loyalty is broader than frequent flyer programs and credit cards, so move with the times and understand the value that is available through retail loyalty programs. Loyalty is not a hoax.

      [1]: http://www.perkler.com/programs/Dusk_Rewards
      [2]: http://www.perkler.com/programs/The_Athletes_Foot_ClubFit
      [3]: http://www.perkler.com/programs/Rebel_Sport_Season_Pass

      Reply

    • Rev says:

      08:53am | 18/10/11

      Some people have no idea how to use a loyalty card, I take it?

      I have a QFF Visa/Amex and the Woolies rewards card.
      I put all my expenses through the card, and transfer the cash immediately so I avoid the (very high) interest charges.

      Ultimately,  I can upgrade my economy seat to business every year for my trip to visit family and friends in the USA, which saves me about $7k per year.  Based on business return to NY/Boston ~$10k, full price economy $3k.  Take off a couple of hundred bucks for the card fee to I guess, but I find it well worth the trouble - particularly at 2m tall.

      Don’t use the points for buying items out of the catalogue, don’t use them for domestic flight upgrades, and don’t use them for ‘free’ flights.

      Reply

    • Frantique says:

      09:05am | 18/10/11

      If I buy 10 Grande soy lattes or mocachinos, I get up to 5% off all Fair Organic Coffee Trade product with my rewards program. I know that SOME people say that F.O.C.T. product is just 25% more expensive for a cup full of stuff that tastes like wee-wee, but at least I feel better about not drinking the sweat of those poor workers from the Third World.

      Reply

    • TugboatBen says:

      09:15am | 18/10/11

      I have several of these loyalty cards. All of them offer between 5% and 20% off. My only issue seems to be after a few quick purchases things can get a bit hazy and I sometimes pass the wrong establishment’s card across the bar while ordering.

      Reply

    • JS says:

      09:16am | 18/10/11

      The only loyalty card i use is my Priceline card, its the only one i get anything out of and seeing as i shop there all the time and would with or without the card, its awesome.

      I used to have flybuys, but it didnt take me long to realise it was a complete waste of time.

      Reply

    • Kika says:

      09:51am | 18/10/11

      OMG what a waste. I remember seeing my mum religiously handing out her fly buys card back in the day and I think the most she ever received was a toaster - and took a lot of points!  I got sucked into the Myer 1 Card… until I worked out that you need to spend $1000.00 in a quarter to get a $50.00 voucher or something.  The only loyalty program I like is strawberry nets. The more times you order, and the more items you order, the bigger discount you get. I am up to 10% off I think for my loyalty discount. It’s awesome.

      Reply

    • Tina says:

      11:38am | 18/10/11

      When I lived in AUS I had a Myer 1 card. I remember my partner at the time opening the envelope that said “Congratulations, you have spend so-and-so-much money and now you get these rewards”. Although I never spent his money, he was very “impressed”. I was quite shocked as well. When you are confronted with the amount you have spent in one year….

    • Burton Erni says:

      09:59am | 18/10/11

      I just can not be bothered with so called rewards cards. But the wife and I found we can donate our accumulated points to charities. So whenever I remember or get prompted by the checkout chick I swipe the flybuys card and then the wife once a month donates / forwards them to the RSPCA. They can utilise them somehow. Think about doing it for your favourite charity.

      Reply

    • nw says:

      10:21am | 18/10/11

      I have a Vintage Cellars Wine Club card dating back to 1997. Its laminated edges are peeling, but it still registers when scanned. It is the second card I received after wearing out the first one over the previous two years. I have drunk thousands of dollars worth of ‘free’ wine since then. And all for buying copious amounts of ‘2 for $20’ specials. Hoax? Really? Punch people, you really need to get over your need to bluster and hurrumph every day.

      Reply

    • Ben C says:

      11:00am | 18/10/11

      I have the following loyalty cards:

      - Fly Buys
      - Myer One
      - Woolworths Everyday Rewards
      - Game
      - Dymocks Booklover
      - Co-Op Bookshop (from my uni days)
      - Ikea Family

      What have I gained out of them? Well, Everyday Rewards knocks off 4 cents per litre of fuel twice a week (my fiance gets the credits when she buys phone/iTunes credit at Woolworths - 10% discount on all Vodafone credit). Dymocks Booklover has accumulated a fair number of points that I’ve redeemed for books I use at work. Co-Op gave me discounts when I was a struggling uni student. The others hardly get used.

      I’ve found that the loyalty cards that give me benefits get used more often. Those that don’t I’ve tended to forget about them when I’ve gone into those particular stores.

      Reply

    • Bec says:

      11:15am | 18/10/11

      Can I just say, as an ex-employee of a certain giant supermarket chain, that checkout chicks do not enjoy being forced to ask you if you have your everyday rewards card. Yes, we know it is annoying. Yes, we know you don’t have one or want one. But we’ll get fired if we don’t do our job properly. So on behalf of retail staff, I apologize for being annoying.

      Reply

    • Kika says:

      01:38pm | 18/10/11

      As an ex employee of a giant supermarket I guarantee you that you won’t get fired for not asking. Nobody is taking security surveillance of you to see whether you are saying that! They will if you dodgy up the cash! ON a busy SAturday I was once accused of stealing cash as my little rocket thing went missing. They wanted to sack me on the spot. Turns out it got stuck in the pipe. Mongrels. I quit after they didn’t give me my 1 year service badge..

    • Sapper Doug Pitts says:

      02:43pm | 18/10/11

      Poor Kika quit a job because she didn’t get a badge after 1 year. It took me 15 years in the army to get my Defence Long Service Medal. When all I needed to do to get a trinklet to wear was 1 year in a Supermarket. Hmm, why didn’t I get a badge afer 2 years of stacking shelves when going throught Uni?

    • Kika says:

      06:33pm | 18/10/11

      Hey Sapper - I worked there when I was 15. Do you think I’d have the maturity OR care to really give a damn? Nope. Did I plan on having a decorated career with that supermarket? NO bloody way. Different thing, don’t you think? No need to get all high and mighty. Oh wait, your an army stick.

    • David says:

      11:52am | 18/10/11

      My question is - Why do the points ‘expire’?

      Reply

    • Andrew says:

      01:35pm | 18/10/11

      Loyalty programs work provided you do 2 things

      1. Actually shop / use the product frequently
      2. Have not changed a single thing from your pre-loyalty program habits.

      The people who do badly from them are the people who are members of 100 different programs and thus never earn enough points for a reward, and the people who change thir buying habits to fit in with the program.

      Reply

    • Mike says:

      01:50pm | 18/10/11

      I shop at Coles - in my suburb the quality and price is better than Woolies - thus the Fly Buys card is useful there.  I tend to go to a Coles Express as I have that docket rather than the Everyday Rewards (Woolies) docket - that also gets me Fly-Buys.  I use Big W for some things (most notably bulk dog food), but Target/Kmart for others (notably kids basics). Given my usage, I can get $50 or $100 vouchers from Fly Buys on a fairly regular basis. 

      I have an Everyday Rewards card as well - in case I go to Woolies or Caltex,  a Dymocks Booklover card, and a Myer One card.  All of those I use as and when I need to - the Booklover in particular seems to get quite a bit of use with primary age kids.

      I’m not stuck with any one shop - I simply get a bit more out of ALL the shopping I do.

      Reply

    • Sam says:

      03:01pm | 18/10/11

      I have a loyalty agreement with the local bikies. The cheap b****ds didn’t give me a swipe card though.

      Reply

    • cretin says:

      04:19pm | 18/10/11

      Talking about loyalty…..

      I ‘Loyally’ avoid the two big supermarket chains, and opt for smaller ones,.. usually Aldi, the local greengrocer, and a local smalltime butcher.  I save about 20-25% on my groceries that way.

      I “Loyally’ avoid petrol stations with those 4c/litre off their inflated prices scams,.. and go to the small independent whose prices are normally lower than the others ‘discounted’ prices.
      Most of the time i can get unleaded for the same price the others are selling E10.

      I “loyally” take not notice of loyalty programs, particularly when the benefits are minimal.  Finding cheaper prices elsewhere more than compensates for the benefits of a loyalty card.

      Reply

    • LJ Dots says:

      05:47pm | 18/10/11

      @cretin - the savings you mention are definitely good, so if savings are your thing go for it. But if you think Aldi is a smaller chain that you are supporting on principle, know that they enjoy market share of over 70% in Germany and are quickly growing in other countries. A Deutschland Coles+Woolies if you like.

      I do like the owner/independent stores though. Our local butcher, grocer and baker is great, and I happily pay a little bit more to keep them round.

    • KC says:

      05:01pm | 18/10/11

      I shop wherever I want. I always pay cash and I have no “loyalty” cards. There is no real benefit in them and I don’t want any entity to know what I buy, where I buy it or when. It’s all a bit Orwellian for me.

      Reply

    • NESLIHAN KUROSAWA says:

      01:34am | 19/10/11

      Hi Lucy,

      What does being loyal mean these days??  Getting something for free??  We all like to think most of the time, may be !! It does not exist at all, we just like the idea of getting something as a bonus & reward!!  To me personally, the actual bonus or rewards always come with the idea of working hard towards something, for something we really, really want, right??

      I personally prefer the kind of loyalty that we tend to have with our close friends & family!!  It is much more valuable & enjoyable!!  Which means we can count on them no matter what happens in life!!

      The idea of getting material gain or benefit, contradicts with the true meaning of loyalty anyway!!  May be the actual high flyers, themselves can count on some kind of freebies!!  We all just have to reexamine our obsession with all these cards!!  Best regards to your editors.

      Reply

    • Cherie says:

      10:54pm | 21/10/11

      Frantique, your comment, (at least i don’t take the sweat of the poor workers of the third world) when you buy your soy coffees, as i am veering from the loyalty or whatever it is has been discussed, check out where you get your soy milk from, perhaps forests raised to the ground to grow it, and i am sure you would find plenty of sweaty poor workers there, as they have no longer the ability to grow anything but soy.

      Reply
 
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