At a time when rewards are most in need, 50% of people are dissatisfied by having limited choice with them. That is according to “From Points to Purchases”, a report published by Runa, the digital value infrastructure for instant global B2C payouts. The report assesses how consumers leverage rewards and loyalty programs in inflationary times.
The study delves into the realm of rewards programs, assessing levels of consumer satisfaction, and exploring the underlying motivations that drive engagement. It sheds light on multiple aspects of reward programs that frequently frustrate consumers. Among US reward program participants, 50% expressed increasing frustration at the lack of choice in how they receive their rewards. Additionally, 38% identified the challenges they encounter in earning rewards as a primary source of dissatisfaction. Other common causes of frustration include the difficulty of redeeming rewards (32%), and that rewards are not meaningful or substantial (31%). This report stresses the need for programmes to modernise in order to meet customers’ expectations.
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Nearly 60% of rewards programme participants intend to rely increasingly on rewards to offset rising expenses within the next 12 months. This percentage is even higher among millennials and Gen Z customers (64% and 62% respectively).
More than 50% of participants encounter difficulties in spending rewards according to their preferences. This underscores how consumers possess large quantities of untapped digital value that remain inaccessible. Enabling individuals to unlock their unused digital value is crucial in order for them to use their rewards as a means of cutting costs and increasing their financial flexibility.
Rewards are vital for customer experience
The vast majority of consumers (90%) believe that rewards programmes have played a significant role in enhancing their overall customer experience. This statistic illuminates that reward programmes have the potential to positively impact customer-brand relationships. This further highlights the need for reward programmes to dovetail more closely with customers’ expectations in order to become even more impactful.
Grocery stores are the preferred place to earn rewards for Gen X and older participants, while Gen Z showed a preference for online retailers. 42% of Gen Z participants also prefer earning rewards from cashback apps. More women than men use rewards when making purchases, 38% of women compared to 31% of men. Women also prefer to cash out their rewards in smaller amounts compared to men, with 60% of women cashing out for amounts lower than $25. Across all age groups, 61% highlighted that the most prominent reason for satisfaction with rewards programmes is value for money.
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