'Tis the Seasons for Points Redemptions

Loyalty platforms provide flexible options at the year’s end

Date:Dec. 18, 2020

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The holidays are here, and so is (safe, socially distanced) holiday shopping, as consumers are eager to carry on gift-giving traditions. But seasonal shoppers aren’t spending solely at retailers this time of year.

 

Customer loyalty platforms also see a boost around the end of the year, as the versatile nature of points redemptions opens up avenues for users to take advantage of their points banks for sharing, self-use, and down-the-road planning.

 

Loyalty programs build year-round connections between brands and customers, rewarding and engaging customers with earned points banks. The right redemption portfolio can really make members feel appreciated; the broader the options, the more creative they can be when it comes to cashing in – and the more satisfied they’ll be with their program.

 

As the holidays approach, that creativity tends to peak – or at least redemptions tick up. Over the past three years, our loyalty program has seen about a 30% increase in points redemptions. What’s more, the average value of items has increased by about 27%. In short, consumers are not only digging deeper into their points banks, they’re making bigger-ticket decisions with their redemptions. With the range of options these platforms provide, it’s no surprise that customers are finding multiple ways to spend their points.

 

 

Points into Presents

 

With the right portfolio, a loyalty platform can be a great gift-shopping destination. Not only do these platforms tend to carry a diverse range of gift cards (annually one of consumers’ most requested gifts), but they can include desirable merchandise – golf clubs for dad, espresso machine for mom, a wide range of apparel even the latest gadgets from the Apple store … and more!

 

The store is also capable of big orders of multiple gift cards in the same denomination – perfect for stocking stuffers, thank-you accompaniments, themed gift packages, and many other creative gifting opportunities.

 

 

Their Favorite Things 

 

Co-branded and affinity credit cards provide users with loyalty programs narrowed to some of their top interests, including specific retailers, pro sports teams, cruise lines or airlines. These users can maintain enthusiasm with every purchase, putting each point toward an activity they’re passionate about.  

 

While the lockdowns and ongoing pandemic have postponed more than a few trips, travel and experiential redemptions may tick up as people treat themselves with trip-planning around the holidays – or take advantage of time off right then and there. With vaccine news evoking significant optimism in recent weeks, travel and experiential redemptions may be the perfect pick-me-up for planners excited to have a new destination on the horizon.  

 

 

Everyday Spend 

 

Customers may also be using reward points to help offset everyday costs. For example, customers can redeem points for open-loop gift cards, which they can use wherever credit cards are accepted. This allows them to pay for anything from weekly expenses like groceries and gas or bigger purchases like a new TV or car repairs. Some brands even offer digital cards that can be activated in real-time, meaning consumers can redeem their rewards in-lane at the retailer. In this way, users can put their loyalty points to work by saving money on planned and/or recurring expenses, adding some breathing room to their budget. 

 

For these many reasons and more, loyalty members are ramping up their redemptions at this festive time of year. If you don’t have a loyalty program in place, you’re missing out on these opportunities to engage and retain your customers – and attract new ones.  

 

Our diverse portfolio and customizable platform give your business the power to shape your loyalty program, complete with our data reporting and analysis and backed by our best-in-class security. Ready to start rewarding loyal customers? Visit https://solutions.incommincentives.com/ to learn more or contact us below.