Earn more reward points on credit card spends on weekends

Now when you shop with your credit card you earn more reward points in the current economic conditions. Banks and credit card companies are announcing special reward programs to increase the demand and help merchants in dealing with falling pace of credit card use at their shops. The consumers can earn up to five times reward points by shopping at select outlets, especially during the weekends.

Sanjeev Takru, manager (marketing) of TGI Friday's (India), pointed out although consumer confidence has been affected due to slump conditions but there has been increase in weekend spends. He said, “For marketers, it is an opportunity to tap this captive customer base by providing added value and benefits through smart partnerships. This drives both loyalty and repeat purchases, thereby increasing our sales”.

There has been increase in the consumer base comprising young working couples and the IT/BPO workforce, eating out, watching movies, socializing and visiting retail shops is now not restricted to special occasions and have thus become a part of daily lives.

Approximately around 50% of the total weekly spending is done on weekends. People mostly spend in retail shops and quick service restaurants. Sunil Sachdev, head of merchant services business at American Express informed last year company had launched Extraordinary Weekends program after it had noticed that in spite of curtailing optional expenses, consumers continued to spend on everyday expenses, such as dining and shopping. It also noticed that consumers everyday spending was more than the weekends in comparison to that on weekdays.

Last year American Express cards witnessed 30% increase in the transactions after the launch of the program in June. The company on weekends spending is offering 5 points for every Rs 40 spent on the card, in comparison to just one point on weekdays. The bank has tied up with Chroma, Wills Lifestyle, Select Citywalk for the year-long program.

Sachdev notified, “By studying both card members as well as merchants into our network, we get an understanding of how and where people spend. We track card members’ purchases at merchant establishments and then help develop profitable and targeted marketing programs that customers find valuable and relevant,”

On the other hand HSBC has introduced a limited period offer (valid till September 30) for its gold, platinum and premium card customers who can earn reward points 10 times faster at its merchant partners, such as Westside, makemytrip.com and bookmyshow.com. Bank is offering 10 points instead of one reward point, on spending Rs 100 during the offer period.

While SBI Cards is offering up to 15 per cent discount on Spicejet air tickets and domestic holiday packages booked through travelguru.com. The bank is also offering discounts on brands such as Pierre Cardin, Allen Solly and VLCC, valid up till December 31. ICICI Bank the largest credit card issuer is giving special offers including payment in monthly EMIs, an insurance plan for every member of the family and a pair of Reebok shoes at a discount of 50 per cent.