How small businesses can stretch their budgets with loyalty points
There are four basic principles for small business owners to successfully capitalize on their loyalty points, according to leading loyalty reward solutions provider Points International. 
Small business owners are, on average, members of 12 loyalty programs and active in five. In many cases, these individuals participate in a variety of programs in their personal and professional lives, often accruing even more points purchasing hotel stays and flights for their employees, and buying office supplies through their programs’ online shopping malls.
How can small business owners get the most from their loyalty programs to stretch each dollar and keep costs down in these difficult economic times?
“Small business owners are looking for ways to keep costs in check and their loyalty programs can help stretch each dollar a little bit further,” said Rob Borden, chief marketing officer of Points International, owner of the Points.Com loyalty portal. “By taking advantage of all the ways to earn, purchase and redeem loyalty points, owners can leverage existing assets to get the basics they really need for their business.”
Points.com outlines four basic principles to successfully capitalize on your rewards – educate yourself, earn everywhere, know when to “top-up” and the best options for redemption.
Educate Yourself
“The biggest mistake many small business owners make when managing loyalty programs,” Borden says, “is not truly understanding the depth and scope of their options. The key to leveraging the programs is to know how to earn the most points or miles, when ‘topping up’ is the best option and how to redeem for what the business needs.”
It is key to have an office manager or operations person who can help choose programs that best benefit the company and who also keeps track of assets.
The first step to take is to consider some very important questions. The answers will guide your company’s approach to loyalty rewards.
– Do you travel regularly? – pick a program with benefits on an airline with a local hub.
– Do you entertain clients often? – the program should earn extra points at local restaurants.
– Do you just need a way to reduce or cover day-to-day expenses? – look for programs with retail earning and redemption options.
Earn Everywhere
Leverage the dollars you’re already spending across a variety of potential awards-earning platforms, including:
– Airlines
– Almost every airline has a partner credit card that offers bonus miles at sign-up or the ability to earn miles for every dollar spent.
– Pick an airline with routes that closely match your own and remember to ask for seat upgrades!
– Hotels
– Major hotel chains offer ways to earn.
– Consider making a select group of hotel chains “preferred vendors” for the business and accumulate regularly in these accounts allowing you to easily redeem and trade between them.
– Dinner/Car Rentals
– Restaurants and car rental companies offer bonus points and miles, or bonus ways to earn miles, in programs.
– Make sure to frequent these establishments when entertaining clients, or even your family.
Borden adds, “Many rewards programs offer additional ways to earn through partnerships with mobile phone providers, charitable donations, retail shops and their own online shopping malls. Make existing cash outflows even more beneficial by earning points and miles with each spend.”
Top-Up Your Accounts
While many loyalty programs have minimum levels before redemption options become available, all points and miles can be useful. Sometimes it’s worth a small spend now to save later.
– Reaching a Reward Level
– If you’ve almost reached the reward level, consider purchasing the points or miles needed.
– American Airlines AAdvantage, Delta SkyMiles, Midwest Miles, Starwood Preferred Guest, and JetBlue TrueBlue, among many others, allow program members to buy additional miles.
– Rates vary by provider, but in many cases “topping up” can be a less expensive option than buying a ticket or booking a room outright.
– Save Abandoned Miles
– Don’t disregard small amounts of points in programs where you don’t regularly earn. Take advantage of them.
Redeem
Once your business is monitoring and earning rewards more effectively, redeeming them for hotel stays and certificates at major retailers is free and can help save on regular expenses.
– Book hotels with points
– Office supplies and equipment
– Don’t assume points and miles can only be redeemed for flights and hotels.
– American Express offers multiple cards with benefits specifically designed for small business owners with redemption options ranging from concert tickets to office products and on Points.com you can redeem Membership Rewards for travel, retail and restaurant options.
– Client gifts
– In a tough economy, it’s even more important to show clients how much they are valued.
– Use points and miles to send flowers and gift baskets from FTD.com and Harry and David, or show support with a simple gesture like a gift card.