5 Things to keep in mind to maximize the value of loyalty points

The obvious choice for many when it comes to redeeming bank loyalty points is cashback. It’s easy to do and gives an instantly gratifying feeling when it shows up on the account statement. However the value per point is often reduced, sometimes up to 50% less compared to redeeming for merchandise or vouchers. Here are some things to keep in mind for the best value.  

Comparing point value per redemption option

Many banks have different values per point based on the redemption option chosen by the customer. For example with the Arabi points from Arab Bank in Jordan, 250 Arabi points are equivalent to JD 15 for cashback, however, the same points are worth JD 25 when choosing to redeem them for a voucher instead. The value per point differs, so check the options against what options make sense.

Point value from frequent flyer programs

With the flood of co-branded credit cards with other loyalty programs in the market such as the MasterCard Platinum FlyPlus from Jordan Kuwait Bank, members earn Royal Plus points as they spend on their card. For best point value on such cards, instead of simply redeeming those points for a regular award ticket, waiting till there are specific award ticket discounts available would maximize the value. Middle East Airlines regularly has promotions for 50% on award tickets, so a flight booked with Cedar miles gives the best value during those promotions. Join the reward program newsletter to know when such promotions take place.  

Converting points at higher value

Many reward programs allow for the conversion of points directly or indirectly (through third party platforms such as Point.com) among them, especially between bank or telco’s and airlines. For example, Etihad Airlines based in Abu Dhabi regularly has a promotion for higher point value when converted from Etisalat Smiles or Citibank Thank you points, giving 20% more points when converted during a certain timeframe. Such promotions simply give free points and could be especially of value when saving for a specific flight on Etihad for example.  

Seasonal retail discounts

During discount periods, the stores themselves could be driving the best value per point. Many reward programs allow for the conversion of the points into retail store vouchers such as Carrefour or Zara vouchers. These vouchers have a fixed currency value, 50 SAR or 25 JD for example. When the stores themselves are offering exclusive and promotional deals, that is the best time to convert the point into the store voucher and get more value for your points as each voucher would buy more items.

Simply cash

They say cash is king, and in some cases, all the available redemption options are just not exciting enough and cashback could be the best value. Ultimately converting the points into a voucher for a retail brand the member will never use is a waste of points. Given that only 26% of vouchers are ever used, chances are that voucher could end up in the drawer somewhere and expires before it could be redeemed. Cashback, in this case, is still the best value.

PointCheckout was launched to address many of these issues and to get the best value for the customer through exclusive deals and helping our members maximize the value of their loyalty and reward points. Spend your points on anything from Careem or Talabat credit to your next grocery shopping list from Matjari.com. Create an account today and maximize the value of your loyalty and reward points.