Loyalty Programs! What Do They Have To Offer Their Customers!

If you’re loyal to one chain of supermarkets, then you can benefit from the kinds of rewards that could potentially save you money.  The question is, who gets you there faster? Who can give you what you want?  

Let’s start off with the store we’ve been focusing on.  (Careful… math ahead)
Sobeys offers a 1 point to 1 dollar collection ratio on all purchases.  That sounds great, considering I spend $400 to $600 a month on groceries alone.  You can earn even more with bonus points offered on different products each week.   So far so good; but what sort of buying power does one point offer?  1,375 points will save you $10 at the till.  That means for every ten dollars you spend without incentives, you save 7.3 cents.  Put into more relatable terms, each month I spend an average of $500, I will save roughly $36.50.  That’s a savings of $438 in groceries for an entire year.  Basically, buy twelve months’ worth of groceries, and get one free! 

To some people, that doesn’t sound like a very big deal, but Sobeys sweetens that deal by being able to convert two Sobeys points into one Aeroplan Point.  For all of you saving up those points for your dream vacation that your tax return can’t buy, then listen up!  Sobeys points also offers up a conversion program with Esso Extra.  And signing up for a BMO MasterCard gets you an automatic $10 savings, or 1,375 points.  For versatility, chalk one up for Club Sobeys!  There is one downfall, however; if you shop at Sobeys banner stores, you will only be able to collect points on your MasterCard. 

Let’s compare this scheme to President’s Choice. 
There are many ways to accumulate PC Points, but the two most common are by opening a no-fee bank account and by applying for a PC MasterCard.  Why would anyone in their right mind sign up for a bank account when they could just sign up for a credit or club card?   Perhaps there are enough perks that makes it worthwhile (fee-less benefits aside). 

The collection of PC Points varies based on the program you’ve signed up for.  Using your PC MasterCard you collect 10 PC Points for every dollar you spend anywhere MasterCard is accepted.  Using your PC Bank Card at the Loblaw chain of supermarkets collects 5 PC Points for every dollar you spend.  Let’s say again that I spend an average of $500 a month on groceries.  Using the PC MasterCard I accumulate 5000 points a month.  Using the Bank Card, I accumulate 2500 a month.  For the former, I save $5 a month, and for the latter I save $2.5, as the buying power for 1000 points is $1.  Big deal, right!?  But remember, if you use your PC MasterCard anywhere MasterCard is accepted, you earn points!!!  This becomes a much bigger deal when you continue using your credit card for main purchases.

It is also important to outline that PC Financial offers up many more incentives if you buy into their services.  Applying for the MasterCard online gives you an automatic 5000 PC Points.  Setting up direct deposit with your account gives you an automatic 10000 PC Points.  For every month you have $1000 to $4999.99 in your account, you accumulate 250 PC Points, and 1000 monthly PC Points if you have more.  (Hope everyone is following this, math can be crazy) 

Including the various bonus schemes that PC offers in-store, I see many accumulation opportunities, but I can’t be bothered to buy into all of their services just to save points.  If you require their financial services, at least you will be able to get their benefits as their thanks.  I know it takes me a long time to see the benefits of PC Points, and from this analysis alone, I can see why Sobeys is able to stay ahead of the curve.

Finally, let’s see how Metro Ontario stacks up.
For every $20 you spend at Metro you accumulate 1 Air Mile, plus bonuses on certain items.  Redemption of points happens on the Air Miles website.  It’s that simple.  No frills attached (pun intended).

In my opinion President’s Choice gives you many more ways to earn points if you are already using their financial services.  But for quick and easy point accumulation with lots of versatility and much stronger buying power, you can’t go wrong with Club Sobeys. 

Just remember one thing; buying into all of the points systems won’t get your very far at all.  Sticking to one program is going to give you best results. 

Next time we’ll take a look at what our leading stores are doing for our communities.