Rewards goal and redemption options - is the gap being bridged?
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Rewards goal and redemption options – is the gap being bridged?

Ai Editorial

9th February, 2022

The categories that consumers spend on, how they go about paying for the same and what should the rewards-mix look like – travel loyalty specialists and issuers have been digging deep and also brought about changes in their respective programs in order to align them as per spending habits and preferences.

Questions that still crop up – while there are options for earning a loyalty currency for lifestyle-related transactions, what about the burn options for these products in credit card reward programs? What about flexible redemption? Say gift cards, merchandise and experiential options.

Looking at options to redeem outside of travel-related transactions, airlines and other travel brands need to understand the intent and accordingly see whether the consumer is looking for travel-related options or something else.

In its new report, The Credit Card Rewards Report, New Orleans-based iSeatz has highlighted that a “large portion of loyalty members prefer smaller, more attainable rewards, in addition to saving for larger travel redemptions”. When one uses miles or points for lifestyle products, it paves way for instant gratification.

“Point-earn opportunities for meal delivery, media streaming, and grocery shopping will continue to be relevant to consumers beyond the pandemic, but as we saw last Spring and Summer, demand for reward travel remains strong. Incorporating redemption for trending travel products like live events, wellness, and vacation rentals will provide compelling touchpoints for cardholders to plan their dream vacations, while solutions like Buy Now, Pay Later, will help make those trips more attainable,” said Kenneth Purcell, Founder and CEO of iSeatz.

Focus

Getting closer to any reward goal faster is fine, but when one is not traveling, then letting redeem for products they have been increasingly spending on is a way to keep attrition at bay.

Also, if one is short on loyalty currency, it is also becoming increasingly common to buy miles or pay via mix of money and miles/ points.

By Ritesh Gupta

Ai Team

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