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Thursday, February 29, 2024

Interact Individuals Discovers Loyalty Factors Alternative for Banks and Retailers within the US

As much as 84 per cent of US shoppers would use a points-based loyalty foreign money if it was provided to them, in keeping with loyalty community Interact Individuals.

Interact Individuals commissioned a brand new survey from The Clever Marketer: ‘Paying with Factors – Tomorrow Is Too Late’. The report examined shopper views on utilizing loyalty foreign money for redemption on-line and in shops to understand its potential worth.

The survey questioned 1,000 US-based shoppers in October 2023. It revealed a powerful enchantment for Pay with Factors (PwP) as a redemption choice. It discovered a higher proportion had been in favour of the idea than The Clever Marketer’s 2022 Rewards Redemption Survey: US Client Attitudes and Preferences, which discovered that 80 per cent of respondents could be doubtless to make use of pay with factors if out there in.

In the meantime, 76 per cent of shoppers expressed a willingness to vary bank cards to entry improved PwP advantages. This inclination is especially notable amongst these with retail playing cards, displaying a stronger need to vary playing cards for the perks of PwP in comparison with financial institution cardholders.

Len Covello, CTO of Engage People, loyalty pointsLen Covello, CTO of Engage People, loyalty points
Len Covello, CTO of Interact Individuals

Len Covello, CTO of Interact Individuals, mentioned the importance of the findings: “This 12 months’s findings underscore continued progress in demand from shoppers for reward programmes that supply the power to pay with factors, and a powerful curiosity in utilising reward factors for important, every-day bills like groceries, on-line procuring, quick meals, and gasoline.

“Retailers have a singular alternative to reinforce their loyalty programmes by customising them to incorporate higher redemption choices via level accumulation, and meet the evolving preferences and desires of their buyer base.”

A possibility for banks and retailers alike?

The Clever Marketer survey additionally discovered that the first motivation for utilizing PwP is to economize and fight inflation by lowering buy bills. When indicating most popular redemption places, respondents primarily chosen grocery shops (62 per cent), on-line retail (56 per cent), gasoline stations or comfort shops (52 per cent), and fast-food eating places (45 per cent) for utilising their loyalty factors.

Round 37 per cent of respondents reported having used PwP at the least as soon as, whereas 43 per cent had been both conscious of PwP however had but to come across it or had been unfamiliar with it as a cost selection. This presents a notable alternative for banks, retailers, and their companions to leverage the rising demand for PwP of their loyalty and rewards programmes, significantly in key redemption places.

Mike Capizzi, dean of The Loyalty Academy, led the analysis and stated: “Pay with Factors is a format that over the previous few years has marked a big shift in the way in which clients work together with loyalty programmes and cost choices. PwP represents a convergence of reward methods and transactional processes, providing clients a novel and probably interesting solution to utilise their collected loyalty factors immediately on the level of sale.”

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