How to Compare Loyalty Cards

Loyalty card programs allow a business to reward regular customers.

Compare the offers, discounts and customer incentives various loyalty cards offer. Retailers and restaurants distribute customer loyalty and membership cards to encourage return business. Most large chain grocery stores give free loyalty cards to their customers to offer special discounts to regulars. Retailers benefit from loyalty card programs by using them to track customer shopper patterns. Choose the loyalty card that offers you the greatest savings advantage by comparing the offers from multiple companies.

Instructions

1. Ask retailers and restaurants for informational brochures explaining the discounts and incentives associated with their loyalty cards. Some businesses will direct you to visit their websites for detailed information on their incentive programs.

2. Start a pros and cons list of all the loyalty cards you are comparing so you can record the upsides and downsides of each card evaluated. Put discounts, incentives and reward points in the "Pros" category and expirations, costs and redemption limitations in the "Cons."

3. Search the loyalty card information for limitations and expiration dates that can keep you from being able to redeem accumulated points. Some companies set strict guidelines that can make it difficult to collect the rewards you have earned. Add the specific restriction information from each loyalty card to the "Cons" column on the comparison chart.

4. Look for an explanation of what each company does with the information you provide to get the loyalty card and the shopping history they collect when you use the card. Many retailers outsource the information to marketing companies to better advertise to their customer base. Find out if you are agreeing to receive email and postal advertisements by signing up for the program.

5. Evaluate the differences between loyalty card programs by reviewing the list. The cards with the most notes in the "Pros" column and the fewest in the "Cons" column provide the greatest advantage to the consumer, with the least hassle. Decide which one offers the most benefits that appeal to you and has the fewest drawbacks.

Tips & Warnings

• Keep in mind that everything you purchase using a loyalty card is connected to your name and address. If this loss of privacy bothers you, using cash and avoiding the loyalty card makes your purchase anonymous.

References

• Guardian.co.uk: Who Finds Loyalty Cards Rewarding?
• ConsumerAffairs.com: Loyalty Cards: Reward or Threat?