The Economics of Loyalty Programmes
Being a Smart Loyalty Customer
Pick programmes you use, read the terms, avoid overspending for points and compare the real value of rewards.
Make loyalty work for you.
Focus
Join a few programmes where you actually shop.
Value
Divide the value of a reward by the points or spending required.
Avoid
Don’t spend more just to earn points.
Track
Keep an eye on expiry dates and changes in rules.
A calculation
A reward worth ₹500 for ₹50,000 spending is a 1 per cent return.
Chasing status for its own sake
Only pursue benefits you'll use.
Key takeaways
- Choose programmes you use.
- Compute real value.
- Don't overspend.
- Track expiry and changes.
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