Table of Contents Hide
- What Are Reward Programs?
- How Do Customer Reward Programs Work?
- Types of Reward Programs
- Best Credit Card Reward Programs
- Best Gas Reward Programs
- Best Hotel Reward Programs
- Best Airline Reward Programs
- Purpose of Reward Programs
- When to Add Reward Programs for Your Business
- What Is the Need for Reward Programs?
- What Are the 3 Rules for Rewards?
- Final Thoughts
- Related Articles
Retailers and other businesses often provide reward programs to their customers as a means of client retention and acquisition. They’re meant to incentivize customers to shop there again by giving them something for being dedicated to the brand or store. Typically, a customer receives bigger benefits the more frequently they shop at the business and the more money they spend. This article contains a list of the best credit card, hotel, gas, and airline reward programs. Let’s dive in!
What Are Reward Programs?
Customers that contact a brand frequently are rewarded with reward programs. It’s a tactic for keeping customers loyal to your business rather than switching to a competitor’s product or service. Customers receive additional rewards if they spend more money or interact more with the brand.
How Do Customer Reward Programs Work?
Companies can reward their loyal customers with points or other perks by instituting reward programs. Furthermore, users receive points in exchange for deals, free gifts, prizes, or access to exclusive benefits. The objective is to increase consumer loyalty and confidence in the company. According to a new survey conducted by Yotpo, customers will go above and beyond for their favorite companies. Sixty-seven percent of people indicated they would sign up for customer reward programs if it meant saving money on products they already like.
The research also revealed that customers desire more than just low prices and special deals. They wish to be informed of upcoming sales and new products. Offering freebies as part of customer reward programs is essential. It might be anything from a lower price to early access. However, the benefits of such reward programs are substantial:
Types of Reward Programs
The following are the types of reward programs:
#1. Points-Based Reward Programs
The most popular form of reward program is the points system. Customers can earn points toward discounts, cash back, special offers, and more. Customers can accumulate points in other ways as well. Users can accumulate rewards through gamification, social sharing, review writing, birthdays, and more.
#2. Tiered Reward Programs
Members of tiered customer reward programs receive perks based on their membership tier. Companies frequently assign ranks to employees based on performance indicators like sales or participation. Customers are given motivation through these incentive packages. The higher a customer’s tier, the greater access they have to premium benefits.
#3. Paid Reward Programs
Customers who pay a fee to join reward programs receive instant and continuous rewards. These costs may be periodic or a one-time occurrence. Membership in a paid program may necessitate demonstrating value to prospective customers, but the rewards for the firm are greater after they join.
#4. Value-Based Reward Programs
Value-based reward programs are designed to help businesses establish more meaningful connections with their patrons. Contributing a portion of sales to humanitarian causes. If you want to make a real impact on the lives of customers, you should consider supporting a cause that is meaningful to them.
Best Credit Card Reward Programs
Identifying what makes a card qualify as a rewards credit card is essential. credit card reward programs. Offer some form of incentive for using it, such as rebates, free travel, or other goods and services. You can get a flat rate of rewards on all purchases with these cards, or you can get additional rewards in particular areas (including gas stations, supermarkets, and restaurants). Rewards are only applicable to fresh purchases and not balance transfers or cash withdrawals.
The following are the best credit card reward programs:
#1. Citi® Double Cash Card
The Citi® Double Cash Card is consistently ranked as one of the best options for flat-rate cash-back credit cards. You receive 2% cash back on every transaction, 1% when you make the purchase, and 1% when you pay it off. However, the high rewards rate more than makes up for the lack of perks, such as a 0% introductory purchase period or bonus category options.
#2. Discover it® Cash Back
With the Discover it® Cash Back, you can get extra rewards in predetermined categories every three months. Grocery stores, restaurants, petrol stations, and online retailers like Amazon.com have all fallen into these types of spending buckets in previous years. Although activating categories can be a pain, the advantages are well worth it if your expenditure falls into the appropriate categories (which it generally does for most homes). For the first 12 months, you’ll also receive the issuer’s famous “cash-back match” reward.
#3. Chase Freedom Unlimited® card
The Chase Freedom Unlimited® card was already a good one when it offered 1.5% cash back on all transactions. Bonus rewards are now available at restaurants, drugstores, and hotels when booking through Chase. Furthermore, new cardholders have the option to earn a generous cash bonus and benefit from a 0% introductory APR term.
#4. Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is a good option if you’re looking for a rewards credit card with a low annual fee and bonus rewards (up to 5X) on dining out, traveling, streaming services, and online grocery shopping. You can transfer your points to approximately a dozen different airline and hotel partners, or you can redeem them for travel booked directly via Chase, where they are worth 25% more. The signup bonus is also fantastic.
Understanding Credit Card Reward Programs
The following are ways to understand credit card reward programs:
#1. Cash Back on Purchases and Payments
Most cash-back credit cards offer a set percentage back in cash once you’ve spent a particular amount; for example, the Citi® Double Cash Card gives you 2% cash back in total (1% on all transactions and another 1% after you pay your credit card payment).
However, there are cash-back cards that allow you to earn points that can be redeemed for cash. The Chase Freedom® and Chase Freedom Unlimited®, for instance, advertise that you can receive cash back, but the benefits are really offered as Chase Ultimate benefits® points. Depending on what you do with the points, they have varying values.
Many credit cards have agreements with particular airlines that give you more generous air miles if you fly with them. You can choose from a wide variety of airline credit cards, like the American Express Gold Delta SkyMiles card and the Hawaiian Airlines World Elite Mastercard. Chase Sapphire Preferred is one such card that lets cardholders earn points redeemable for travel-related expenses like hotel and transportation.
It’s possible to earn bonus points with some of these cards at sign-up or by redeeming them through self-service web portals.
#3. Introductory Rate Period
You can get a low or even 0% interest rate on several credit cards for a limited time. The interest rate applied to debt transfers and whether or not they qualify for promotional rates are two aspects of credit card use that can vary widely between issuers. If you make a purchase or transfer a balance to your Discover it Card within the first 14 months, you won’t pay any interest.
#4. Discounts or Gift Cards
You can get a $50 Amazon gift card just for applying for the Amazon.com Visa Card from Chase, plus 3% cash back on Amazon.com purchases, 2% cash back on gas, restaurants, and medicines, and 1% cash back on everything else. With the My Best Buy credit card, you may get 5% cash back on everything you buy from Best Buy, plus 10% on your very first purchase and every purchase for the next 14 days.
Best Gas Reward Programs
The best gas reward programs are brand-specific and can be used at any station carrying that chain’s fuel. When it comes to gas reward programs, there are those that offer savings on gas purchases and those that allow you to earn points that can be redeemed for free products or gas. There is no risk in joining a gas reward program because membership is free. If you want to start saving money, you should first determine which gas stations you frequent the most and then sign up for their reward programs. Also, if you fill up your tank frequently but at different stations, you can and should sign up for many gas reward programs.
The following are some of the best gas reward programs you can go for:
#1. BPme Rewards
BPme was renamed and updated in early 2020 after being known as the BP Driver Rewards program. The BPme program is a mobile app and service that seeks to assist customers save money on gas. When you sign up for BPme Rewards, you’ll immediately be eligible for a 5 cents-per-gallon discount for the next calendar month. Once you reach that point, you may maintain your discount by spending $100 or more on gas every single month.
You may also see if you’re eligible for any extra bonuses or discounts by checking the BPme Rewards app. You can keep track of all of your gas purchases and rewards points in one convenient place by using the BPme app.
#2. RaceTrac Rewards
With RaceTrac’s gas reward program, you may earn one point for every $0.25 you spend in-store and one point for every gallon you buy. Use the RaceTrac app in conjunction with your rewards card to earn and keep track of points, then cash them in for discounts and freebies. To get a free coffee or fountain drink every week as the “King of Coffee” after reaching 2,000 points in the loyalty program, you need to earn a lot of points.
#3. Exxon Mobil Rewards+
You should enroll in Exxon Mobil Rewards+ if you frequently refuel at Exxon or Mobil stations. You can earn three points per gallon on gas purchases and two points per dollar at gas station convenience stores and car washes with the gas benefits program. Also, you can save $1 for every 100 points redeemable at the gas station. The Exxon Mobil app can also be used as a gas rewards card, and it provides instant access to your reward balance.
#3. Pilot Flying J myRewards
Professional truck drivers can use the myRewards mobile app to keep track of how much gas they’ve bought at the pump. If you buy 75 gallons of gas at once, you’ll get half a point per gallon in rewards. As a professional driver, you can earn points redeemable for things like showers, Internet access, and meals. Extra reward opportunities and exclusive discounts are sent to myRewards members through the app.
#4. Shell Fuel Rewards
The Shell Fuel Rewards program exceeds the limitations of other gas reward programs by allowing members to earn points on purchases beyond gas and convenience goods. You can save 10 cents per gallon on gas if you sign up and spend $50 at merchants who accept the connected card. Spend $50 at eligible online stores and get a 5-cent discount per gallon of gas, or spend $50 on event tickets and get a 10-cent discount per gallon of gas.
#5. Citi Premier Mastercard
Citi Premier cardholders may earn three times as many points on gas purchases that’s three points for every dollar spent at the pump than they would with any other category of purchases. You can use it every time you fill up to help pay for the $95 annual charge and the interest rate of 15.9% to 23.99%, which varies with your creditworthiness. Gift cards can be purchased for $600 or 60,000 points transferred to a frequent flyer program of your choice, such as Virgin Atlantic Flying Club.
Best Hotel Reward Programs
The following are some of the best hotel reward programs you actually opt for:
#1. Hilton Honors
One of the best hotel reward programs for a typical traveler is the Hilton Honors rewards program. The company operates 18 different hotel brands in 122 different countries, ranging from the luxurious Waldorf Astoria to the more affordable Tru by Hilton. you can also accumulate points and spend them on a variety of purchases, including hotel stays, flights on partner airlines (including United and Delta), rental cars, and Lyft trips.
#2. Wyndham Rewards
Although Wyndham’s program, which includes brands like Days Inn, La Quinta, and Ramada, is more constrained in terms of luxury options, both are excellent choices for travelers in the United States and internationally. Marriott’s hotel brands vary from the luxurious Ritz-Carlton and St. Regis to the more affordable Courtyard and Four Points. When compared to Marriott Bonvoy, where members must stay at least 10 nights to achieve second-tier status and benefits like late checkout and room selection, Wyndham only requires three nights of stay to achieve this level in 2022. Discounted rates are available to the most basic membership tiers in both programs.
#3. World of Hyatt
You can’t go wrong with the World of Hyatt rewards program if you’re planning to take a vacation at a beach resort or in the center of a new city. There are a wide variety of hotels to choose from throughout the several Hyatt brands, including the Park Hyatt, Grand Hyatt, and Hyatt Regency, as well as the Miraval, Andaz, and Thompson Hotels. The program has 25 airline partners and provides members with discounted rates at a variety of hotels. Moreover, you can receive the rest of what you need because three of the four membership levels in the program allow for late checkout.
#4. Stash Hotel Rewards
The Stash Hotel Rewards program may be a better option if you prefer independent hotels versus those belonging to large chains. If you book your stay at one of the more than 1,000 independent hotels in the Stash network, you can earn points toward free nights. Your points can be redeemed at any of the approximately 150 Stash Partner hotels spread around North America, South America, the Caribbean, and Central America. The rewards system is straightforward, especially when compared to those of other big hotel chains: There are no membership tiers to worry about; just spend money, get points, and exchange them for free nights. Spending around $1,600 within the network will earn you enough points for free nights.
How to Choose from Hotel Reward Programs
Choosing the right hotel loyalty program may seem like an overwhelming task. Think about the hotel chains you’ve enjoyed in the past and the places you visit most frequently (or plan to visit frequently). Picking a program with a huge hotel network will give you more options in the long run, but before committing to anything, be sure it includes the kind of accommodations you prefer and the places you plan to travel. Select a program that facilitates the accumulation of incentives that are of most value to you, such as complimentary stays, extended check-out times, or the chance to select your own room.
Best Airline Reward Programs
The number of domestic flights taken by Americans has nearly returned to pre-pandemic levels despite skyrocketing rates and soaring inflation. Therefore, now is the perfect moment to start collecting airline miles and points so you can enjoy their benefits later. You don’t have to be a frequent flyer to start collecting points and redeeming them for tickets, upgrades, and other perks. The following are the best airline reward programs you can go for:
#1. American Airlines AAdvantage
American Airlines AAdvantage program is one of the best for the typical traveler. There are many major American Airlines hubs across the United States, including Dallas, Charlotte, Chicago, Miami, New York, and more. The more miles you fly with American or one of its partners, the more Loyalty Points you’ll earn. You may also rack up miles by making purchases at any of America’s many rewards partners, such as Marriott and Hyatt hotels.
#2. Delta Air Lines SkyMiles
SkyMiles from Delta Airlines is another fantastic option for traditional fliers, along with United’s Mileage Plus. Similar to American Airlines’ AAdvantage program, customers can pay for flights with a combination of cash and points, and elite members receive free checked bags. The standards for attaining elite rank have been raised in the most recent updates to both American and Delta’s awards programs.
#3. JetBlue TrueBlue
Travelers can use JetBlue’s TrueBlue program to book tickets from any city in the United States to sunny locales like Orlando, Puerto Rico, and the Dominican Republic. This program is ideal for group trips because it allows members to combine their points with up to six other people.
Are Airline Reward Programs Worth It?
The benefits of airline reward programs are substantial even for infrequent flyers. They are typically cost-free, and gathering points today can result in some fantastic benefits and discounts later on. There are numerous variables to consider when determining the optimal program.
Purpose of Reward Programs
Customers are rewarded for their loyalty and the issuing business gains valuable insights into its clientele through reward programs. The use of reward programs provides additional information on the kinds of products that may be purchased together and whether particular incentives are more effective than others. While businesses can assess anonymous transactions, using a loyalty program allows for more in-depth analysis.
Reward programs are especially useful for high-volume companies that rely on repeat consumers for their businesses to thrive. With the cost of acquiring a new customer being far higher than the cost of selling to an existing one, building a loyal following is essential to providing value. When properly implemented, repeat consumers will aid in attracting new ones for a fraction of the price of conventional marketing strategies.
These initiatives are most effective when they become part of the regular routine of the target audience. Customers are often more devoted to a hotel, store, restaurant, credit card, or airline than to the brand itself because of the points or benefits they have accumulated in the reward program.
When to Add Reward Programs for Your Business
Today, every company must work hard to earn the trust of its customers. Trust may be earned in a number of ways, but one of the most effective is showing appreciation for consumers and giving them something they can’t get anyplace else. Starting reward programs will help you strengthen your relationships with your current clients rather than wasting time looking for new ones. For instance, you can incentivize repeat business and new consumers alike by offering points-based awards and referral programs via a mobile app. It provides assistance with every step of the process, from conceptualizing the program to installing the signup widget on your website.
Customers can access their accounts, track their progress toward prizes, and redeem points from the convenience of their mobile devices.
What Is the Need for Reward Programs?
Customer reward programs are shown to boost revenue, client retention, and company expansion. It is necessary to boost your business.
What Are the 3 Rules for Rewards?
- Don’t promise rewards in advance.
- Keep anticipated rewards small.
- Reward continuously, not just once.
client reward programs have shown over the past ten years to be a successful means of increasing client lifetime value, improving customer retention rates, and instilling brand loyalty. Although the low-key punch card has its place for some organizations, a really inventive approach to customer reward programs can provide significant value for retailers.
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