Credit card rewards programs have become a commonplace and expected benefit for credit cardholders. Sixty to seventy percent of credit cards now offer rewards, more than double the number from five years ago.
As a result, card issuers and their co-branding affiliates have been steadily upping the ante with enhanced rewards promotions. Report notes several emerging trends, including:
- Making rewards programs more flexible - Offering double or even triple points so rewards can accumulate faster - Creating merchant-specific rewards cards and increased co-branding - Allowing consumers to choose or customize their own rewards - Offering “experiential” rewards
One challenge that continues to face the industry is that many consumers do not redeem their rewards, lessening the retention value of these programs. This report examines some of the latest developments and innovations in credit card rewards programs, including identifying new venues and opportunities for marketing and promotion. This report offers insight into how credit card issuers and other financial companies may be able to capture consumer loyalty more effectively. It is clear that there is no “one-size-fits-all” solution. Beliefs that future opportunities will be heavily influenced by companies’ ability to target consumers with customized offers that make rewards easier to earn and redeem.
