This Quarter’s Key Findings

Revenge travel continues! In Q2, travel redemptions continued to surge and doubled since Q4 2022. Merchandise redemptions doubled as well. Higher redemptions in both categories shows consumers are starting to redeem points for experiences and new electronics rather than cash back and gift cards. Sure, cash and cards remain the top redemptions, but have declined over 10% combined over the past 2 quarters.

The redemption sleeper? The Legend of Zelda: Tears of the Kingdom was a highly awaited Nintendo Switch game. While the game release was not highlighted on the merchandise page, it took the #3 spot. What does that tell us? Members are aware their points can be redeemed for new releases and they’re willing to use the search function in the rewards catalog. Now more than ever, it’s important to have relevant rewards that are easy to search for, an experience that provides easy checkout, and fulfillment options that are easy for members to download, ship, and pickup.

2023 Point Redemption Activity

Top 5

Points redeemed for Merchandise

Future Predictions

Even though inflation may have cooled, members will continue looking for ways to save. We’ll likely see gift card redemptions rise for retailers like Amazon, Target, and Walmart, where customers can purchase their essentials. As RAZR promotes seasonally relevant merchandise to inspire consumers, we’ll see a redemption increase in featured products. Customers will treat themselves without impacting their wallets. Will travel redemptions continue to increase? We’ll find out next quarter.

2023 will be the year to surpass customer expectations.

Take time to understand customer needs and use these insights to build loyalty. We can help. Our proprietary technology platform, Fibonacci™, powers engagement programs in the financial services, healthcare, and consumer packaged goods industries.