This Quarter’s Key Findings

Thanks to holiday spending, Q4 redemption increases are pretty predictable from year to year. Redemption types also tend to hold steady. In Q4 2022, cash back held the #1 spot for point redemption, with gift cards following close behind.

However, travel redemption outpaced merchandise as post-COVID “revenge travel” surged toward the back half of the year. Merchandise redemptions reflected the year’s top gifts (earbuds and headphones) as well as holiday hosting and entertaining (air fryers and vacuums).

2022 Point Redemption Activity

Top 5

Points redeemed for Merchandise

Future Predictions

With the cost of living continuing to rise, members will be looking for ways to save. We’ll likely see gift card redemptions rise for retailers like Target and Walmart, where customers can purchase their essentials. Merchandise redemptions may also see a bit of an uptick, as customers find ways to treat themselves without impacting their wallets.

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.