Financial institutions, struggling to keep their customers on board, are rewarding them for their loyalty.
Now Absa, the last of the banks to launch a rewards programme, has come up with a
scheme which they claim allows you to qualify for a prize two and a half times faster than
any other programme.
One of the major gripes customers have with loyalty or reward programmes is that you,
for example, have to spend a small fortune on your credit card to eventually qualify for
that overseas trip.
In fact, on some programmes, many members stand little chance of qualifying for a
prize.
This was a concern highlighted by Bart Hogendoorn, Absa's general manager, new product
development, some months back when Personal Finance focused on loyalty programmes.
"We might be the last of the four banks to introduce a loyalty programme, but we
wanted to make sure that members derive real benefits," he says.
The bank's new ABSAlute Winners programme, unlike many of the other programmes, is not
only a credit-card based programme. You also qualify if you have car finance with Bankfin
or a home loan with one of the Absa banks.
To ensure that everyone who joins the programme has a chance of qualifying for a
reward, Absa has set certain minimums. These are:
* A home loan of more than R125 000 at an Absa bank;
* Car finance in excess of R50 000 from Bankfin, and
* You have to spend an average of R1 000 a month on your credit card.
Credit card holders have to convert existing Allied Bank, Trust Bank, United Bank and
Volkskas Bank credit cards to the ABSAlute Winners credit card.
Additional benefits on the ABSAlute Winners credit card include a one percentage point
lower interest rate charged on your debit balance.
Membership of the programme will cost you R34,20 a year. Apart from welcome bonus
points, you will earn points when you use your ABSAlute Winners credit card; make payments
on your home loan; extend your home loan or take out a new one; pay an instalment on your
Bankfin vehicle finance agreement, or buy a car, boat or caravan.
Your points can be exchanged for a range of prizes such as travel packages, gifts or
gym memberships. The value of the prizes ranges from R50 to about R10 000. You have to be
on the programme for six months to claim a reward.
If travel takes your fancy you can choose a domestic flight or an overseas package
tour. Absa, which has an in-house travel agency, will get you the best package deal and
will calculate the number of Awardpoints you need to qualify. If you don't fancy any of
the prizes you can opt for a gift voucher.
AN EXAMPLE
As an Absa bank home loan customer
with a new home loan of R200 000; a R50 000 vehicle finance contract with Bankfin, and
spend R2 000 a month on your ABSAlute Winners credit card, you can qualify for the
following rewards:
REWARD
POINTS NEEDED
TIME TO REWARD
VALUE
28 litre microwave
42 520
23 mths
R1 399
57cm Weber kettle grill
20 000
1 mth
R900