Save Money Using Rewards Programs

In the past ten years, reward programs have sprouted up everywhere like a bad weed. At first there were only a few but once the idea caught on in business marketing circles, they grew like wildfire. Programs are available for everything from retail stores, restaurants, and gas bars to airlines, hotels, and car rental agencies. Some of these programs are actually worthwhile while others are nothing more than marketing gimmicks that offer very little in real value to loyal customers.

When participating in a rewards program, always remember that these programs would not exist if they weren’t benefitting the companies who made them more than they are costing them. It still makes sense to participate in them most of the time as long as you don’t let rewards program influence your spending habits such that you will forgo a better price, or not even look for one, because you want to collect points or miles at your favourite store.

How To Benefit From Rewards Programs

• Research all the rewards programs offered to Canadians and only participate in those that give you a tangible return on your spending.
  • We have complete guides to several of the best rewards programs available in Canada.
• Keep abreast of the latest promotions, coupons, and specials that increase your rewards payout.
  • You could spend years collecting the amount of points that doing this just once could generate for you.
• Learn which reward provides the most value for your points in every rewards program you participate in. 
• Combine rewards with other saving strategies like sales, coupons, cash back, and credit cards rewards to maximize your spending power.
• Always sign up for rewards programs at stores that you frequent often and would shop at anyway.
• Don’t be afraid to do a little math to figure out exactly how much reward return you are getting on your spending.
• Read all the HowToSaveMoney.ca content related to rewards programs.

What To Watch Out For With Rewards Programs

• Changes in your shopping routine or spending pattern solely because of a rewards program.
  • This is ok if the products you buy become cheaper than other stores when factoring in the value of the reward.
• Reduced value of points or miles due to rewards program policy changes.
  • It is usually best to spend your points as quickly as you can in lieu of saving them.
• Higher prices at stores that offer rewards programs. They have to pay for the program somehow!
• Temptation to buy products you don’t need or use just because a reward bonus is attached to them.
  • This is ok if the bonus reward is worth more to you than the cost of the product, you can always give it away or donate it to charity.

What Is The Best Canadian Rewards Program?

The Shoppers Optimum program by Shoppers Drug Mart is by far the best Canadian based rewards program. When used properly you can easily achieve a reward return of over 50% on your purchases. In the past, it was even possible to use the program to purchase high end items like iPods and XBox 360s while earning more money in rewards than the actual cost of the item itself. This was done by combining a 20x product bonus with a 20x the points promotion. Whenever this lucky combination came about, it would always yield a reward return greater than the cost of the product, no matter what the product was.

The stars only aligned a few times in the past five years such that you could get high end items for essentially free, but getting a 50% reward return on your total purchase is much more common. Unfortunately, the overall value of the Optimum program has been consistently eroding in recent years with the elimination of some key promotions that were extremely lucrative along with the July 31st 2010 point redemption value changes. Even with these adjustments, the Shoppers Optimum program continues to be far and away the best retail rewards program in Canada.

Here at HowToSaveMoney.ca, we will teach you exactly how to earn the most Shoppers Optimum points you possibly can while spending the least money and how to get the maximum value for those points when it comes time to redeem.

Continue on to the Rewards Primer section to learn about important concepts and techniques for getting the most out of a rewards program or pick a rewards program you are interested in learning more about from the left side menu.