Consumers Have $100 Billion in Unredeemed Loyalty Points
According to The Loyalty Report 2017 released today, consumers have approximately $100 billion in unredeemed loyalty points. The seventh annual report from Bond Brand Loyalty says 57% of loyalty cardholders don’t know their points balance and 38% don’t know what their points are actually worth.
There were over 28,000 participants from the United States and Canada in this year’s survey, covering 400+ loyalty programs across 10 categories (hotel rewards, airline rewards, retail rewards, etc.). 81% of consumers say they are more likely to do business with a brand because of their loyalty program, and 66% adjust their spending habits to maximize their rewards.
More than half (55%) of members sign up for loyalty programs online, compared to 32% who sign up at a physical location. 52% do not know if their rewards program has a corresponding app, but 57% would like mobile access to their account information.
Redemption remains the biggest hurdle for rewards members. Only 25% of participants said they were “very satisfied” with the effort it took to redeem their rewards. 34% of members do not have a “redemption goal,” an intended use for their loyalty points. 54% of members with a redemption goal were very satisfied with their rewards program, compared to 43% of members without a goal.
The survey asks rewards cardholders to determine which factors drive their satisfaction the most. Having a program that meets the consumer’s needs was at the top of the list, followed by programs that people enjoyed participating in. Surprisingly, the amount of rewards per $1 spent was ninth on the list, far behind “ease of redemption” in fourth place. That just goes to show that loyalty points are more valuable to consumers if they are easy to use, rather than easy to earn.