Australians love their rewards points, particularly in the lead up to Christmas, but are concerned they are not getting full value.
12 December, 2019 — Collecting rewards points is a national hobby, with 94% of Australians enrolled in at least one rewards scheme. However, a third of people don’t feel like they are taking full advantage of their credit card rewards, according to research from Citi Australia.
The research, which surveyed 1000 Australians, reveals that over half of customers choose their card based on the rewards program. Of the customers surveyed, 53% of credit card holders prefer to be rewarded with gift cards.
“With Christmas around the corner, we know consumers are looking for ways to ease the holiday spending pinch. Typically, we see customers building up their bank of points throughout the year and using them in October or November to purchase gift cards to pay for their family Christmas gifts,” says Citi Australia Head of Cards and Loans, Choong Yu Lum.
“In November 2019, Citi saw a 72% spike in customers cashing in their rewards points, compared to the previous month. Looking specifically at gift cards, we saw a 51% increase in redemption, indicating customers are likely getting ready to spend on Christmas shopping.”
Age and gender are other factors that impact preference for rewards. Younger people prefer to use their points for gift-giving, with 20% of those in Gen Y and Gen Z stating they use points to give something special to a loved one. This compares to only 12% of those in Gen X and 7% of Baby Boomers.
The younger generation are also more likely to redeem their loyalty points most frequently – on average once every two months.
The research shows that men and women spend differently too, with women surveyed preferring to redeem for smaller or shopping related rewards, and men saving up for something big or travel related.
Four tips to get the most out of your rewards programs
“Consumers are getting savvier in terms of how they use their points, but with 1 in 3 Australians still uncertain they are getting full value, there are a number of tips they might find helpful,” says Lum.
- “Get a rewards card, and to the extent it makes sense for you financially, put your expenses through this card so you generate points.”
- “Use all your benefits. A lot of people take out their credit card for a joining offer, and then don’t