ShopTalk | Who's cashing in on rewards programs? (Infographic)
Choosing a credit card is about more than just catchy slogans and advertisements. Annual fees, interest rates, and credit limits are all important considerations when selecting new plastic. And perhaps one of the biggest differentiators is the associated rewards program. According to a recent survey by NerdWallet, 73% of Americans say that rewards are one of the most important factors when choosing a credit card.
Rewards programs extend beyond credit cards and are offered at all types of retailers, from grocery stores to gas stations. Given their immense popularity, Vantiv and Socratic Technologies teamed up to take a closer look at how people are using them. Here’s what a survey of 500 consumers found.
Grocery store rewards programs and credit card rewards programs have the highest participation rates
57% of respondents participate in grocery rewards and 56% participate in credit card rewards (Membership Rewards, etc.)
However, credit card rewards are respondents’ favorite type of program
They prefer credit card rewards (37%) over grocery store rewards (18%)
Baby Boomers participate most frequently in credit card rewards and Retirees participate most frequently in grocery store rewards
42% of Baby Boomers participate in credit card rewards and 22% of Retirees participate in grocery store rewards, the most among their respective generations
People sign up for the free stuff
Points accumulated for free merchandise or travel (47%) and automatic discounts at time of purchase (41%) are the top reasons for signing up
The rules and restrictions of rewards programs can be stifling
When asked what they dislike about rewards programs 43% say that they require too much spending to reach the next level of status, 36% say that the points or rewards expire before they can use them, and 33% say that it’s hard to use the rewards because of all the restrictions
Millennials want lean wallets
33% of Millennials dislike rewards programs because there are too many cards to carry, which is their #1 complaint; as a result, they are also the generation most likely to provide their membership information via a mobile wallet (20%)
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