Redemption Report
Q4 2023
This Quarter’s Key Findings
If you “unwrapped” a gift card this past holiday season, you wouldn’t be alone. Q4 saw a significant increase in gift card redemptions from Q3 (10.4%). This is interesting, but not surprising, as gift card redemptions are generally higher in Q4 likely due to holiday gifting.
Increased gift card redemptions aren’t the only win this quarter. Cash back continued to decrease in Q4 (the second quarter in a row). This is good news because it garners stronger loyalty.
What else were members keen towards in Q4? Prepping for the trips they booked in Q3! Travel redemptions decreased quite a bit from the last quarter, as many 2024 trips were already on the books. However, travel related merchandise increased. This indicates the impact of anticipating your members’ needs in relation to the last quarter and reflecting that on your merchandising page.
Q4 showed promising redemption trends and opportunities to capitalize on this in the new year!
Q4 2023 – Point Redemption Activity
Top 5
Points redeemed for Merchandise
RAZR featured Airpods, Dyson Hair dryer, and the Nintendo Switch on this quarter’s merchandise page. This demonstrates how merchandising influences buying behavior.
#6 Home Depot ($50), #7 Applebee’s ($25), #8 Olive Garden ($50-25), #9 Lowes ($50), #10 Texas Roadhouse ($25)
Top 5
Points redeemed for Gift Cards
Amazon remains the top dog in Q4, and Chipotle makes its way into the top 5.
Q4 is always a big time for entertainment. Winter sports, shows, and family activities were all popular choices!
- Amusement Parks
- Holiday Events
- Basketball Games
- Football Games
- Touring Artists
- Comedy Shows
- Theatre Tickets
Early Q1 Predictions
New Year’s resolutions typically have a big impact on Q1 redemptions. Cardholders are thinking about self-improvement, fitness, and budgeting. This means that gym memberships, spa services, and self-care items might be top features on your merchandising page.
Q1 events are also an important consideration. At RAZR, we make sure that we feature items to get ready for the Superbowl. Who doesn’t want to watch the big game on a plasma television?
Consider Advanced Merchandising to Increase Redemptions in 2024
Take time to understand your customers’ needs and leverage these insights to build loyalty. At RAZR Financial, we help clients build engagement and increase redemptions by designing and implementing merchandise pages that can have a measurable impact.
Interested in getting started? Click here!