Two-Thirds of US Consumers Prefer Being Able to Redeem Their Loyalty Program Points When Making a Purchase

DEERFIELD BEACH, FL, UNITED STATES, March 11, 2025 /EINPresswire.com/ — Wise Marketer Group (WMG) today announced its fourth annual U.S. consumer research study with Engage People covering what consumers expect from loyalty programs, switching behaviors, and preferences for utilizing their loyalty currency to receive rewards.

The latest report from this multi-year study is titled “Cashing Out: What Consumers Expect from Loyalty Programs,” and draws insights from 1,000 American consumers that are predominately actively participating in loyalty programs (90%+).  Nearly all panel respondents, representing balanced demographics, earned points in a program at some point in time (98%).

“This year’s report provides new insights into the specific benefits that are driving loyalty program engagement, with tangible rewards, like cash promotions or loyalty-driven currencies, continuing to be a significant motivator for program members,” said Jonathan Silver, CEO of Engage People. “The report also reconfirms the demand for specific financial benefits, like the ability to pay with their rewards points online and in-store, as a preference in selecting reward redemption options in the loyalty programs where they participate.”

The research found that consumers engaged in loyalty programs remain highly sensitive to price and are largely open-minded to switching brands.  While adoption of a “savvy consumer mindset” is on the rise, loyalty programs and their benefits are influential in limiting this brand switching and addressing consumer expectations across pricing and promotions. Among the key highlights from the research:

• 90% of respondents are willing to switch brands with 23% doing so frequently and another 65% switching when motivated by the “right incentive.”
• 86% of respondents preferred receiving cash back or credit as a loyalty program benefit.
• The ability to Pay with Points (PwP) was preferred by 64% of respondents.
• 38% of respondents apply earnings to reduce the price of their purchase, which had a 1.8-2.22x greater impact over the next two leading options to utilizing cash.

“It’s not that surprising to see that price is the leading driver of switching behavior from one brand to another.  More than half of survey respondents indicated that the loyalty program benefits can be an inducement, slightly bettering special promotions and discounts,” noted Aaron Dauphinee, CMO of the Wise Marketer Group. 

He then added, “When you ask consumers what benefits they prefer, then cash back or credit have always led.  We see that in this report too, but the findings suggest the combination of “what” consumers can redeem for, such as merchandise at the retailer, and “how” they can redeem, such as paying with point, are significant as well.” 

Engage People is the only loyalty network that enables program members to pay with points directly at checkout like they would with other forms of payment like credit or debit cards.

The study found that 78% of consumers would engage more with a loyalty program that provides ‘Pay with Points’ as an option, underscoring the demand for flexible redemption solutions that make rewards immediate, meaningful, and easy to use.

For global coverage of customer engagement and loyalty read  TheWiseMarketer.com

For global loyalty education you can learn more at: LoyaltyAcademy.org

About the Wise Marketer Group

Wise Marketer Group (WMG) is an education, advisory, and media company serving as the trusted steward and advocate for the global customer loyalty marketing industry. WMG publishes TheWiseMarketer.com (TWM) as the global source of timely, authoritative and well-informed content featuring news, research, and insights. TWM is known as the Global Voice of Customer Loyalty, having served the industry for over 15 years.

Loyalty Academy™ (loyaltyacademy.org) is owned and operated by WMG, providing a proprietary, practitioner-based, globally recognized loyalty marketing education curriculum through digital and in-person learning formats. The Loyalty Academy™ is the only source for earning the Certified Loyalty Marketing Professional™ (CLMP™) designation.

WMG Advisory & Research provides services to brands and providers in the loyalty industry through a trusted advisor approach, delivering market research and insights, executive and operational business consultation, partnership and vendor evaluation, and M&A discovery.

For more information, visit https://thewisemarketer.com/ and https://loyaltyacademy.org/.

About Engage People

Engage People is the only loyalty network that enables program members to pay with points directly at checkout. The global technology provider connects loyalty programs with global payment systems and online retailers, and covers 100% of the top purchase categories in North America. Leading banks and retailers around the world rely on Engage People for its first-of-its-kind loyalty network and pay-with-points capabilities. Engage People is headquartered in Toronto, Ontario, Canada and has offices in the U.S., Canada and Italy.

For more information visit: www.engagepeople.com.

Media Contacts:

Aaron Dauphinee
Wise Marketer Group
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