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Reward programs can be described as types of allegiance program, which in itself is a means to an end. It is a system whereby companies are able to identify their best customers and appreciate them in an attempt not to lose them.
The fundamental assumption of this program promotion is that maintenance of all existing customers is very much less expensive than trying to acquire new ones. For it to be effective, it must be able to identify its best customers easily.
Reward programs are always offered by credit card issuers to their cardholders to encourage them to use only one credit card for all their purchases. However, it must be inventive and inspiring as adequate as possible so that customers will be able to associate themselves and also volunteer themselves for easy communication between them and the credit card company.
Top Reward Programs
Rewards are marketing approaches that are designed for various types of credit card companies. You may get rewards for using your credit card, buying products from a certain company or even from your employer. The 6 Reward Programs that are leading in US are as highlighted below:
Some airlines now offer credit card rewards to some of their cardholders which give cardholders’ airline some points that build up whenever the card is used. More miles are usually awarded for definite expenses, such as buying airline tickets with the supporting airline company.
Gas station program credit cards are starting to be more famous as gas prices increase and consumers are more particular about the cost of fuel. Some cards offer a high reward percentage as an initial offer but it may drop considerably after the preliminary period. Some cards are only suitable for use with one gas station Company. It is however important that the cardholder should know exactly which spending activities will generate discounts and how many those reductions will be at the end of the period.
Miscellaneous Rewards Program
This is specially designed to recompense users with lots of perks which include cash back bonuses, hotel, restaurant and resort discounts, recurrent flyer miles, and extraordinary shopping discounts each time they use the card to make a purchase. Using a reward credit card for all of your purchases can help you earn more bonuses at the end of the year, and even get more cash back.
You will benefit from this type of program if you travel in a lot, whether for business or pleasure. Hotel rewards credit card will help you save money by earning rewards for your travels.
Reasonably flexible credit cards are being offered which may provide airline miles points that are redeemed for accommodation. Points or airline miles are earned anytime the card is used. When the card is used in connection with your travel such as purchasing airline tickets or hotel accommodations, you will earn a better number of points.
With this, credit card issuers offer more alternatives to students who have spending prospective and want to establish a credit history. This is one of the leading rewards programs in US. The issuers are developing student reward program credit cards specifically aimed at this market.
Other Options to consider
Exist many rewards credit cards that offer a 0% rate for the initial period. These zero interest cards are aimed at consumers who may have the need of carrying a balance on their accounts during the introductory period.
It is a method of transferring your outstanding balance to a credit card that offers a preliminary none interest. It is an effective way for cardholders to manage their debt. The balance transfer method is the type used by companies to encourage new business from cardholders.
Choosing Reward Cards
You must be aware that all rewards programs are not equal. Therefore, you should put some factors into consideration when selecting a program. Such factors to be considered would include; spending habits, what are the rewards, and most importantly laws that are guiding the type of program to choose. That is the more reason why you should research very well before you decide on the program to choose.
The main goal of reward programs is to reinforce the two-way loyalty connection between a company and its most excellent customers. Since they vary, you must put certain factors into consideration when selecting one in order to make a wrong choice.