Article: A Loyalty Program Bonus is Better than a Competition!

[AFF Editor]

A Loyalty Program Bonus is Better than a Competition! is an article written by AFF editorial staff:

A Loyalty Program Bonus is Better than a Competition!

For loyalty program members, competitions are not as valuable as a bonus or discount because the expected rate of return is generally lower.

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

 

[exceladdict]

Agree. I will rarely, if ever, go out of my way to change my behaviour in response to a competition.

An interesting recent example, which also occurred last year, - Qantas were trying to encourage people to switch to cash out their WWR$ to QFF points - was a 3 day promotion where everyone who switched in that time would receive a 'guaranteed share' of 2 million points (shared with everyone who switched in that period).

I'd much prefer the guaranteed bonus points (or ideally, the 10 SC for every $10 redeemed as previously offered way back when).

 

[maia200]

I do not change my behavior either for a competition. They just do not excite me. Possibly due to experience my chance of winning has been nil/zero/nullah....I still enter from time to time if there is a flight prize just in case (maybe, maybe) but not for automatic transfer or for anything I am expected to do . However, saying that I did win $2.11 for my nearly $60 Powerball outlay the other night, so maybe my luck is changing. I would prefer Bonus SC or DSC and great discounts - Loyalty programmes with really great offers - and excellent customer service with easy IT do it yourself changes would be good - much better than a competition.

 

[Forg]

Maybe a competition might push you over the edge into choosing something when you were already considering it?

For example what if SQ offered some sort of competition for extra status or points if people transfer their status & FF points 1:1 over from a One World airline under some limited-edition special deal?

 

[MollyJones]

If it is a competition, I won’t go out of my way to enter, but will activate offers on the off chance something will come my way.
For the casual user of loyalty programs, the idea of winning “millions” or becoming a “points millionaire” sounds amazing as they see the word and think $$$ not realising points don’t equal dollars.
The recent AMEX shop small was ridiculous and I yet it could have so much more of an opportunity to boost small businesses after Covid.

 

[Brissy1]

Likewise competitions never change my behaviour.
1,000 points bonus would change my behaviour, yet 1/1000 chance of winning a million points wouldn't . Yes the maths is the same but the psychology of it... actually getting something or having Buckley's chance of getting something more.

 

[Tiki]

I don't even bother with surveys that offer a 1/100 chance to win a voucher. But I will do them if there are guaranteed points for them.

 

[Gold Member]

I don't even bother with surveys that offer a 1/100 chance to win a voucher. But I will do them if there are guaranteed points for them.

That reminds me of the infamous Qantas Surveys that took you over 10 minutes, only to be told upon completion that you weren’t eligible (and after they captured all of your feedback).

Taking Matt’s article one step further, the Loyalty programs must also be on the ball to understand the financial/budget risk of scope creep, leverage, loop holes, legitimate/illegitimate and moral/immoral ways to exploit the offer beyond the intended terms and prescribed benefit. But none of us here would have ever even thought of “maximising” our Loyalty promo returns in this manner though, right?

 

[justin23]

Pass on competitions from me also. I know a few people who enter competitions religiously, no competition is a bad competition for them and guess what they do actually win quite a few prizes, but its never the comps you want to win.
Reminds me of a company i worked for who got a satisfactiopn rating from the annual survey of 34%.... Their answer to people upset about wages and management not listening to them, was top hold competitions and awards. Do companies not realise Awards typically go to the staff, the majority of staff don't actually think deserve the award!

 

[LostRedditor]

Does anyone know of anyone who’s ever won one of these comps?

 

[jakeseven7]

Ugh competitions... agree.

Virgin's stupid middle seat competition
Qantas' stupid 'win a share of X points' compeittion

Who cares

 

[exceladdict]

Does anyone know of anyone who’s ever won one of these comps?

Know someone who won a substantial points haul from Amex where you got an entry to a comp by referring someone else for a card.

Also, last month I got a $100 gift card from Telstra for being on their online feedback portal, I think from the monthly draw of active feedback givers.

 

[Amanad78]

Does anyone know of anyone who’s ever won one of these comps?

Someone in the Red Planet survey thread won 50,000 points back in January

 

[p--and--t]

the old adage is of "a bird in the hand is better than 2 in the bush" applies. Give me something tangible, not a maybe if you are damn lucky one in x million.

 

[dajop]

Worse than either, and ambiguous bonus. Very common amongst banks here in Singapore to run promos with fine print such as "bonus given to first 271 participants who fulfil conditions of the offer between 03:07am and 04:17am on a Thursday when there's a full moon and the night is cloudy". OK I jest but it is common to have a limit to the first 500 (or whatever number) participants to fulfil the terms of the offer, and if it's spending x$ in a certain period on a specific credit card, it can be a gamble whether you make the cut or not. Which means I won't participate.

 

[Seat0B]

I’m another firm onto competitions. I do sometimes activate if that’s all I have to do, but I’d much prefer a smaller guaranteed