CINCINNATI -- Six out of 10 American shoppers intend to use points they have earned through customer-loyalty programs to save money on holiday gift-buying this year, Colloquy research shows.
That represents a 22% increase in the number of shoppers who are planning to cash in reward points on gift purchases, compared to the 2013 holiday season.
In the millennial demographic (ages 18 to 34), the intent to use reward points for gift-buying shifts dramatically upward compared to the general population (ages 18 to 45 and above):
- 63% of consumers ages 18 to 24 plan to use points on gifts in 2014, representing a 43% increase over last year.
- 71% of consumers ages 25 to 34 say they will cash in reward points for gifts, a 34% increase over 2013.
Approximately 62% of consumers ages 35 to 44 say they will redeem points for gifts, a 19% jump over last year, and 54% of consumers ages 45 and older say they will trade points for gifts, a 20% increase over 2013.
Colloquy updated its annual Holiday Loyalty Shopper Study by obtaining responses in October 2014 from 1,000 American consumers nationwide about their holiday shopping behavior. Operated by LoyaltyOne, Colloquy is a leading provider of loyalty marketing research.
"The amount of spending projected in the 2014 holiday season exceeds $600 billion, so 60% of consumers using reward points can generate a lot of redemptions," LoyaltyOne vice president Dennis Armbruster said. "Retailers clearly have ample incentive to simplify and encourage reward redemptions and make the holiday shopping experience all the merrier for their best customers."
Here are some other key findings from the Colloquy Holiday Loyalty Shopper study:
- 35% of shoppers plan their holiday purchases to maximize their customer-reward earnings during the gift-giving season.
- 20% of shoppers adjust their gift ideas based on which products offer significant bonuses and related rewards.
- 40% of women and 31% of men say that when shopping this holiday they will choose retailers that operate customer-reward programs in which they participate.
- 10% of shoppers say that so-called soft benefits, such as early access to a product or event, would be a strong incentive to patronize a specific store.
- Gift cards (52%), coupons (49%) and cash-back offers (48%) rank highest among survey takers for encouraging shopping at a specific store.
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