Store loyalty programs often aren’t as enticing as travel or grocery programs, but some offer incredible value. The key is to understand how you can earn more points and how best to redeem them to get the best value. Here are some store loyalty programs worth a look.
Tims Rewards
The Tims Rewards program offered by one of Canada’s best-known brands, Tim Hortons, offers a good return in the right situation. Whenever you make a purchase at Tims and scan your rewards card, you’ll earn 10 points for every dollar spent. You can also earn extra points with in-app offers.
When redeeming your points, there are seven different redemption levels, ranging from 300 points for items like cookies and classic doughnuts, to 1,800 points for wraps or bowls. Depending on the menu item you select, one Tims Reward point can have a value of between 0.34 and 0.66 cents. Although prices vary by location, hash browns and dream doughnuts generally offer the highest return.
To earn more points, you could apply for the Tims credit card. It has no annual fee and earns you 15 points per dollar spent at Tim Hortons, five points per dollar spent on groceries, transit and EV charging, and one point per $2 spent on all other purchases. Since one Tims Reward point has an average value of 0.50 cents, you get real returns of 7.5 per cent, 2.5 per cent and 0.25 per cent, respectively.
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Although the card gives you an incredible return at Tim Hortons and a respectable earning rate on some essentials, the value you get on all other purchases is terrible. You’d likely be better off with the American Express Cobalt Card since you’d earn five points per dollar spent on groceries, restaurants and food delivery, two points on travel and transit purchases, and one point per dollar spent on everything else.
Triangle Rewards
Many Canadians fondly remember paper Canadian Tire money. What they may not realize is that the program has evolved into a digital one called Triangle Rewards. You can now earn CT Money at Canadian Tire Corp. CTC-A-T banner stores, which include Canadian Tire, Sport Chek, Mark’s, L’Équipeur, Atmosphere, Party City, Pro Hockey Life, Sports Rousseau, Hockey Experts, L’Entrepôt du Hockey and participating Sports Experts stores.
Triangle Rewards is appealing since you can earn CT Money on almost every item at eligible stores and through in-app offers. In addition, Canadian Tire has two no-annual-fee credit cards that allow you to earn more CT Money. Of particular note is the Triangle World Elite Mastercard. You’ll get 4-per-cent back in CT Money at Canadian Tire banner stores, 3-per-cent back at grocery stores and 1-per-cent back everywhere else. You also get a free Roadside Assistance Gold Plan.
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To further boost your earning potential, Canadian Tire launched Triangle Select. This subscription-based enhancement costs $89 plus tax a year, but you get additional perks such as a welcome gift valued at $50, 10 times more points on in-store purchases, 20 times more points on select in-store brands, and 20 times more points on your largest annual purchase.
Sephora Beauty Insider
Sephora Beauty Insider has always been appealing since you instantly get access to seasonal savings events, end-of-year discounts, app exclusives and a free birthday gift. For every dollar you spend, you earn one point. Spending $350 and $1,000 a year gets you VIB and Rouge status, respectively, giving you even more rewards.
To redeem your points, you can choose beauty products found online from the Rewards Bazaar. If you’re shopping in-store, available Rewards Bazaar sample products are found at the register when you check out. Alternatively, you can redeem your points for cash off your purchase, but samples typically offer better value.
Sephora recently made a change that upset some people. You now must make a minimum purchase of $25 online to claim your free birthday gift. Previously, you could make any purchase. Fortunately, you can still claim your free birthday gift at any Sephora store without making a purchase.
Indigo plum
Indigo’s IDG-T loyalty program – called plum – earns you five points per dollar spent on almost all purchases – eBooks, electronics, Lego, and American Girl products and services don’t earn you points. Since it takes 2,500 points to get $5 off, you need to spend $500 before you get anything.
However, if you’re willing to pay $39 a year, you become a plum PLUS member. As soon as you join, you get one $10 in-store and one $10 online voucher. That effectively reduces your annual fee in the first year to $19.
The main benefits of plum PLUS are the 10-per-cent discount you’ll get on almost all purchases and free shipping. Plum PLUS pays for itself if you spend $400 yearly on qualifying purchases.
Always read the fine print
Loyalty points are a great way to reward people and keep them engaged. However, consumers should always read the details about how to earn and redeem their points. Every program will typically have a sweet spot where you can get the most value for your points. For some, paying an annual fee to earn more points is silly, but it can be worth it if you’re getting more value out of the program than what you’re paying each year.
Editor’s note: A previous version of this story omitted the decimal point. One Tims Reward point can have a value of between 0.34 and 0.66 cents or an average value of 0.50 cents
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Barry Choi is a personal finance and travel expert at moneywehave.com. He was previously affiliated with Canadian Tire, but currently has no relationship with any of the brands mentioned above.