Approximately 84% of Consumers Would Use Pay with Points if Offered, According to New Research from The Wise Marketer and Engage People
Findings highlight the continued popularity of pay with points among consumers, with many open to changing their credit or debit cards to providers offering the solution
TORONTO, ON / ACCESSWIRE / December 19, 2023 / Engage People, the only loyalty network that enables program members to pay with points directly at checkout, commissioned a new survey from The Wise Marketer titled “Paying with Points – ‘Tomorrow’ Is Too Late.” The report examines consumer perspectives on using loyalty currency for redemption online and in stores to realize immediate value.
The survey, which was conducted among 1,000 U.S.-based consumers in October 2023, found a strong appeal for Pay with Points (PwP) as a redemption option, with 84% of consumers reporting they would use this loyalty currency in the future if offered. That’s up from 80% of respondents who said they would be likely to use pay with points if available in The Wise Marketer’s 2022 Rewards Redemption Survey: US Consumer Attitudes and Preferences.
In addition, 76% of consumers expressed a willingness to change credit cards to access improved PwP benefits. This inclination is particularly notable among those with retail cards, showing a stronger desire to change cards for the perks of PwP compared to bank cardholders.
“This year’s findings underscore continued growth in demand from consumers for reward programs that offer the ability to pay with points, and a strong interest in utilizing reward points for essential, every-day expenses like groceries, online shopping, fast food, and gas,” said Len Covello, CTO of Engage People. “Retailers have a unique opportunity to enhance their loyalty programs by customizing them to include better redemption options through point accumulation, and meet the evolving preferences and needs of their customer base.”
The Wise Marketer survey also found that the primary motivation for using PwP is to save money and combat inflation by reducing purchase expenses. When indicating preferred redemption locations, respondents mainly selected grocery stores (62%), online retail (56%), gas stations or convenience stores (52%), and fast-food restaurants (45%) for utilizing their loyalty points.
Roughly 37% of respondents reported having used PwP one or more times, while 43% were either aware of PwP but had yet to encounter it or were unfamiliar with it as a payment choice. This presents a notable opportunity for banks, retailers, and their partners to leverage the growing demand for PwP in their loyalty and rewards programs, particularly in key redemption locations.
Mike Capizzi, Dean of The Loyalty Academy™ and who led the research said, “Pay with Points is a format that over the past few years has marked a significant shift in the way customers interact with loyalty programs and payment options. PwP represents a convergence of reward systems and transactional processes, offering customers a novel and potentially appealing way to utilize their accumulated loyalty points directly at the point of sale.”
Retailers and loyalty program sponsors interested in learning more about PwP and Engage People’s suite of loyalty solutions can visit www.engagepeople.com.
About Engage People
Engage People is the only loyalty network that enables program members to pay with points directly at checkout. The global technology provider connects loyalty programs with global payment systems and online retailers, and covers 100% of the top purchase categories in North America. Leading banks and retailers around the world rely on Engage People for its first-of-its-kind loyalty network and pay-with-points capabilities. Engage People is headquartered in Toronto, Ontario, Canada and has offices in the U.S., Canada and Italy. For more information visit: www.engagepeople.com.
About The Wise Marketer Group
Wise Marketer Group (WMG) is a global customer engagement and loyalty media company that delivers timely and unbiased publishing, research, and educational products to a world-wide audience of marketing professionals. The Wise Marketer on-line publication is the most widely read news source for customer engagement and loyalty marketers. The Loyalty Academy is the only source for marketers to earn the Certified Loyalty Marketing ProfessionalTM (CLMP) designation through comprehensive education and corporate training programs. WMG has two decades of experience covering, commenting on, and educating loyalty practitioners with a readership-base and network of CLMPs in 130 countries. For more information visit: www.thewisemarketer.com.
CONTACT:
Shazana Farook
Caliber Corporate Advisers for Engage People
[email protected]