Canadians are addicted to loyalty programs and there are plenty of them ranging from AIR MILES to Club Z points (I haven’t stepped into a Zellers store in years, so I believe the latter is now defunct). The fact that Canadian Tire “money” is practically a parallel currency says something about our collective addiction. Personally, I am enrolled in AIR MILES, Aeroplan and PC Points loyalty programs.
Recently, I wanted to redeem my AIR MILES for an Apple iPod, so I visited the various loyalty program websites to figure out the actual dollar value of a point. The results are summarized in the following table.
|Loyalty Program||To Earn 1 Point||To redeem $10 (in Points)||Rewards Rate|
|Canadian Tire Money||$66.67||10||1.50%|
|Sears Club||$1.00||667||1.50% – 4.00%|
|Shoppers Optimum||10¢||7000||1.40% – 2.00%|
Aeroplan, AIR MILES and PC Points can be collected as rewards through various credit cards and rewards range from 0.68% (for AIR MILES no-fee credit cards) to 1% (for PC MasterCard). I am not aware of a no-fee credit card that can be used to collect Aeroplan miles, so the value of the rewards is less than 0.83%. 1.5% seems to be the standard reward for loyalty programs offered by assorted retail outlets, though Sears Rewards can be as high as 4%. Note that rewards on department store credit cards are typically lower than rewards for in-store purchases.