Lyfepoints Helps Consumers Earn Points on their Bills with Everyday Shopping
Before 2011, the market for home heating oil wasn’t all that sophisticated; most consumers would simply go to the convenience store on Main Street. That year, however, the market changed with the introduction of Neighbor Oil. The fledgling company brought your home oil onto the web, giving you a venue to find the best deals as well as earn points redeemable toward your bill.
Since its founding two years ago, Neighbor Oil has also expanded into natural gas and electric bills. The company thus rebranded as Neighbor Power. And then again, this past weekend, as Lyfepoints.
Why the shift? Well, soon, more than gas, oil and electricity, Lyfepoints will offer reward points redeemable for waste, insurance, health and more.
“Our focus is simple; save people money on bills at the point of payment by using their everyday spending,” said Paul Harkins, Lyfepoints’ CEO.
How it works for the individual consumer
Rather than opt for the local convenience store, Lyfepoints gives consumers the resources to shop around in the comfort of their own home. You compare prices by the gallon with Lyfepoints and get the best deal.
Its appeal is much broader than oil, too: as you shop around, you earn rewards, just as you would with your credit card. Eligible stores include Barnes & Noble, Kmart, Kohl’s and more.
To shop and earn points, simply visit Lyfepoints’ retail partners, both online and in person. If you do shop on the Web, with the company’s 3,000 online partners, make sure to access eligible stores through the Lyfepoints site, or else you won’t earn rewards.
Some 20,000 physical stores are eligible for rewards, too. Enter your loyalty card number, and you’ll begin accumulating points. Lyfepoints will also give you access to coupons; as you pick up and activate them, they’ll land automatically on your loyalty card.
You can earn points by spreading the word, too. Refer a friend, and you’ll be rewarded. Allow Lyfepoints to write sponsor posts on your wall, and you’ll earn points there, too.
Each point is then a dollar off your oil bill.
There is, however, a small catch, if you’re using Lyfepoints for your oil bill. Most subscription services monitor your oil supply for you. With Lyfepoints, however, you need to keep an eye on your oil and then reorder before you run out.
Rewards sharing
Pretty soon, points will become more flexible, according to Matt Burke, a Lyfepoints customer care representative. In its next iteration, users will be able to share rewards among separate accounts. So, if you live with a few roommates, it’ll be easier to consolidate points and save on your utility bills.
Until then, a multi-person apartment can still earn rewards together. You just have to have one account, rather than one for each of you. All you have to do is add all loyalty cards to that same account—it doesn’t matter that they’re under different names.
How it works for Lyfepoints
You’re probably wondering already: How is this a sustainable model? What’s the trade-off for me, the consumer?
Well, Lyfepoints doesn’t make its profits from your store purchases. It generates revenue on the other end, on a business-to-business basis, with the utility companies that pay to use its service.
“If we charged consumers or brands too much for that, the margin would be useless so we monetize the use of the platform for large companies and what we can do with data without sharing personal info,” Harkins said.
Angie Picardo is a staff writer for NerdWallet, a personal finance site dedicated to helping consumers save money with the best credit cards, travel tips and more.
Category: Saving Money
