Survey: Majority of consumer interested in redeeming loyalty points

Richmond, Va. -- Survey results released Tuesday by Affinion Loyalty Group found that 89% of consumers are interested in redeeming points at point-of-sale.

The survey also found that the respondents identified cash and retail store gift cards as their two favorite redemption items.

However, the survey also inserted a hypothetical variable, which shifted the results. When asked about a POS redemption option -- which would allow consumers to use points or miles to pay for anything anywhere, just like dollars -- the number of consumers who had previously identified redemption values of points programs as “budget help” ramped up from approximately 25% to a staggering 89% who indicated they would be interested in point-of-sale redemption, with 47% highly likely to redeem points at the point-of-sale.

When respondents were asked what they would redeem for at the point-of-sale, groceries and everyday items were ranked the two most popular categories; cash redemptions become much less relevant in a point-of-sale model.  

"Our research indicates the need for an easy to use, omnichannel approach to points redemption, with clear, and simple to understand communication around the program," said Mike McDonnell, VP product management and client solutions, ALG.