Reward scheme is a good way to retain customer loyalty, but a poorly managed scheme might turn the customers away.
In the latest issue of CHOICE (No. 432), complaint cases involving consumers' dissatisfaction towards some of the reward schemes were highlighted. Below is the summary of 3 complaint cases:
Delay in crediting reward points
Mr. Lee saw a promotional leaflet at a chain electrical appliance shop offering 3 times reward points upon purchase transaction. He then spent a total of HK$8,848 at the shop. When Mr. Lee subsequently checked his reward point balance, he found that only the normal reward points had been credited to his account. Upon enquiry to the company, he was informed that the extra reward points would only be awarded to his account 6 weeks after the transaction date.
6 weeks later, however, Mr. Lee still did not receive the extra reward points. He called the shop again several times to enquire but to no avail. Mr. Lee eventually contacted the Council for assistance when the rest of the reward points still had not shown in his account 3 months after the transaction date.
Upon the Council's conciliation, the shop allotted the extra rewards to Mr. Lee's account and explained that the delay was due to the extension of the promotion period. Nevertheless, it is an undisputed fact that the extra reward points were not given out to the customers within the time frame as stated in the promotion leaflet.
Additional requirement when using reward points
Mr. Cheung saw on the website of Company C that members could use 400 reward points to redeem a set of food and beverage coupons. He therefore redeemed online 2 sets of coupons and the confirmation showed that 800 reward points were required but no cash needed. When he received the redemption letter he found that apart from the reward points, he had to pay HK$340 for each set of coupon. Upon his inquiry, Company C explained that reward points, together with a specific redemption price, were stated in the terms and conditions of the redemption offer, though not on the confirmation page.
Mr. Cheung regarded the redemption information of Company C unclear and misleading and therefore sought help from the Council. In its reply to the Council, Company C reinstated that the redemption information clearly showed both the reward points and cash required. However, the company admitted there were other customers misunderstanding the requirements. The company agreed to cancel Mr. Cheung's transaction.
Membership card lacked identification
Mr. Wong joined the reward scheme of Company D, which allowed him to use the reward points to redeem products or cash coupons by showing his membership card upon purchase. Mr. Wong estimated that the reward points accumulated in his card was equivalent to more than a thousand Hong Kong dollars. Incidentally he found that his card was swopped and that his reward points were used by somebody else. He suspected that a cashier had mistakenly given his membership card to another customer when he was making payment.
Mr. Wong complained against Company D that there was neither photo nor name printed on the membership card to identify the user, and that the card would be easily taken and used by others.
Mr. Wong demanded Company D to compensate him with the lost reward points by tracking his past shopping records but his request was turned down. He wrote to the Council for help.
Company D replied to the Council that it was difficult to ascertain if Mr. Wong's membership card was mistakenly swopped at the cashier, and therefore the company did not find it justified to credit the allegedly lost reward points to his account.
There are usually restrictions for earning and redeeming reward points, consumers should take note of the followings regarding reward schemes:
- an expiry date is usually set for reward points;
- different terms and conditions might be set for different redemption offers, check the details before making reward redemption;
- some reward points cannot be used instantly at the merchant's cashier and some prior arrangements or registration may be required, such as printing coupons from a designated machine or by making prior online registration before redemption;
- keep the membership card with care.
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