New research identifies 'pay with points' and increased redemption options as key trends in increasing loyalty program customer retention

TORONTO, ON / ACCESSWIRE / May 28, 2020 / New loyalty program customer survey results from Engage People, a global technology provider that redefines the way customers spend loyalty reward points, have uncovered that 75% of customers are more likely to spend loyalty reward points to make a purchase over other payment methods. The findings also indicate 72% of customers actively engage in loyalty programs because of the available redemption options.

To understand key motivations for customer engagement and loyalty, Engage People surveyed more than 2,000 U.S. consumers that are members of credit card loyalty programs, ranging from ages 18 to over 60.

'We've always viewed loyalty points as a valuable form of currency, and our recent survey results confirm that loyalty program members are starting to adopt the same mindset, leading to an increased demand for flexible payment capabilities,' said Len Covello, CTO of Engage People. 'In addition to having the flexibility to pay with points, consumers are looking for more redemption options so they can buy the things they want. We're proud to have built an extensive retail network that offers more choices for loyalty program members, which helps fuel a meaningful connection between consumers and their financial institutions.'

Additional key findings from Engage People's loyalty customer survey include:

• 72% of customers sign up for loyalty programs to get some value for the spending they are already doing; 6% of customers remain engaged because of the program offers
• 62% of loyalty members would rather have the ability to use their points on the spot, just like a credit or debit card, rather than receiving a gift card or cashback
• 33% of loyalty customers indicate lack of engagement is due to the lack of places or options to redeem their program points
• Nearly 50% of respondents say ease of spending and redeeming points is the number one reason they actively engage in their current loyalty program

The results of this survey offer an at-a-glance look at the evolution of the loyalty space, as well as a better understanding of consumer appetite for the flexibility to pay with points. These insights paired with Engage People's technology help insurance firms, hotel chains, retailers and financial institutions better serve their customers.

For more information or to download the complete report, visit: www.engagepeople.com/research2020/.

About Engage People

Engage People is a global technology provider that redefines the way customers spend loyalty reward points. Serving as the conduit between banks, retailers and their customers, Engage People allows consumers to make everyday purchases with loyalty points, giving them the flexibility to buy what they want - whenever they choose. By offering pay with points, Engage People unlocks loyalty points that have been accumulated but not spent. Top banks and retailers around the world rely on Engage People for its first-of-its-kind loyalty ecosystem. With headquarters in Toronto, Ontario, Canada and offices in the U.S., Canada and Italy, Engage People has been ranked on Canada's Fastest-Growing Companies list by Canadian Business and PROFIT. For more information visit: www.engagepeople.com.

CONTACT:

Michelle Mead
Caliber Corporate Advisers
[email protected]
888.550.6385 ext.7

SOURCE: Engage People