Credit cards and loyalty programs

In recent years, loyalty programs are increasingly present in people’s daily lives. Before these programs were seen only in airlines, only those who traveled by airplanes could enjoy their benefits.

Today, various product categories offer this benefits. In several pharmacy networks, customers when buying hygiene or perfume products can accumulate points. By stocking the benzine car at a service station, you can accumulate points. Hotel accommodations, car rentals, air ticket purchases (in some cases land transportation tickets), restaurant expenses; All this can be transformed into points in some mileage program. And do not forget that if any of the payments of these products is by credit card, more points can be accumulated. Credit card managers are champions in points and miles distribution for loyalty programs.

 

And, what is the reason for the increase in the number of loyalty programs?

And, what is the reason for the increase in the number of loyalty programs?

The greatest competition among companies in these sectors who are interested in maintaining their traditional customers and conquering the customers of the competition. Companies seek to offer more and more benefits for consumers.
Loyalty programs are one of the most used tools to achieve that goal, it is a way to reward the customer and a good attempt to make them faithful. On the client side, that reward received can be exchanged for a product or service. The miles and points accumulated in the various programs can be transformed into air tickets, hotel accommodation, fuel, appliances, income for shows or shows, shopping vouchers and various other products or services.

By concentrating the expenses on a certain provider or paying their expenses with a single credit card, the consumer can benefit even more. The business has grown so much that the companies that administer loyalty programs are separating this area from their other businesses. In Brazil, TAM created another company to manage its miles program: “Multiplus Fidelidade”.
It even opened the capital of this company. Gol also followed this path and transformed “Smiles” into an independent company.

 

And what are the care that should be taken by consumers?

credit cards

The first one is to be aware of the validity period of the accumulated points, each program has a specific regulation and the validity periods are very different, many times consumers accumulate the benefit for some time, but when they want to use them, they are surprised by The loss of several points. And many companies shyly warn about the expiration of points.

Another important care is not to forget to compare prices before deciding on a product or service. Many times, fooled by a future benefit, the consumer ends up deciding on a product that guarantees some points in a reward program but without observing that the value paid is higher than in competing companies. This higher expense will not be recovered with the benefit offered by the program. In this case, the consumer is not taking advantage of the loyalty program.

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