reward points

Are they worth it? I'm thinking more about store reward programs than the reward points earned with credit cards. Let's take the Shoppers Drug Mart (Canada's largest pharmacy chain) Shoppers Optimum Reward program as an example. When you rack up 7,000 points, you can save $10 on your next purchase. Sounds great, but in reality that means (if you don't end up earning extra bonus points along the way) that you've spent $700 to get the measly ten bucks. If you make it to the highest level of 75,000 points, you get rewarded with $150. But of course you've spent (again, without extra bonus points thrown in to help) a whopping $7,500! Now, it's true that if you would have spent that amount in that particular store anyway, then the reward is kinda nice (although still paltry), but I think the reward system entices you to spend more than you normally would. At least, it did with me a number of years ago. When I found myself deliberately buying things I didn't necessarily need (yes me, the frugal one!) just to get more points more quickly, I stopped using the Shoppers Optimum card and am glad I did.

Ha! Here's someone with a different take. Kathryn uses the reward system to much greater advantage, so perhaps I need to rethink my strategy.

Comments

[Krissa]

"but I think the reward system entices you to spend more than you normally would." ~

That is 100% totally correct. And the sad thing is, there are people who were paid (probably high salaries, too) to tell the companies that. Sadder still, it really works - most consumers do fall for it. And I do agree that if you are going to spend that much eventually anyway, the reward program is nice, but in all honesty there is no way it doesn't influence shoppers to spend more than they would have. The stores will NEVER do anything which causes them to give away anything. And that's fine. They're stores, not charities. But they are sneaky, eh? Snort!

[have gone vegan]

Well, I could say you're being cynical, BUT you're absolutely right! There would be no reward point system if stores weren't making a huge profit from it. And like gift cards, I bet a lot of points never even get redeemed. Having said that, I suppose smart consumers could take some of the suggestions provided in the Katherine post and use the system to their advantage.