Auriemma Group's latest Cardbeat US report shows that rewards marketplaces, like American Express and Chase Ultimate Rewards, are key drivers of cardholder engagement and loyalty. The report highlights how savvy cardholders strategically redeem points, influencing both spending habits and long-term satisfaction.
NEW YORK, Sept. 12, 2024 /PRNewswire-PRWeb/ -- Credit card reward marketplaces such as American Express Membership Rewards, Chase Ultimate Rewards, and Capital One Shopping are becoming a core feature for many credit cardholders. According to Auriemma Group's latest Cardbeat US report, three-in-five credit cardholders have access to a rewards redemption marketplace, and nearly three-quarters redeem through them for travel bookings, merchandise, gift cards, and more. This method of redemption is even more popular among co-brand credit cardholders, presenting brands with a valuable opportunity to reach a broad audience through these rewards marketplaces.
Although credit cardholders have a variety of available redemption options, the research revealed that the majority redeem their points for the same type of reward every time (86%) and prefer to redeem in one specific category (71%). Most cardholders report saving their points or miles until they have enough for a large redemption.
"Cardholders view their credit card rewards as a means to an aspirational purchase" says Jaclyn Holmes, Director of Research at Auriemma Group. "Cardholders have become accustomed to having a variety of redemption choices and increasingly expect that their favored brands will be available wherever they shop."
Cardholders are evenly split whether they want to redeem their rewards while shopping with a merchant or through their credit card issuer's rewards marketplace. Over half believe credit card points are worth the same no matter how they're redeemed, meaning access and availability largely drive redemption choices.
"While some cardholders passively earn and redeem the rewards they earn, others are more strategic than ever—not just in how they earn rewards, but in how they maximize their value through thoughtful redemption," says Holmes. "This level of savvy doesn't just influence their choice of card—it defines their experience with it, driving long-term loyalty and satisfaction."
Rewards marketplaces are becoming a key driver of card usage as well, with 57% saying their rewards marketplace encourages them to spend more on the associated card. While cashback continues to be the category most redeemed, two-in-five marketplace users commonly redeem for T&E purchases.
As the landscape of rewards redemption continues to evolve, credit card issuers looking to enhance their marketplaces must ensure they are meeting the needs of their diverse cardholder base. The challenge will be to continue providing value and convenience in a way that keeps cardholders engaged and satisfied.
Auriemma Group's research and partnerships teams are well-equipped to help issuers strategically enhance their card's value proposition and optimize their rewards marketplace offerings. With deep industry insights and a collaborative approach, Auriemma Group provides the expertise needed to tailor rewards programs that align with cardholder preferences and drive long-term loyalty.
Survey Methodology
Cardbeat US
This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in June 2024 among 800 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.
About Auriemma Group
For 40 years, Auriemma's mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognized experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships, and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximize their performance. Auriemma serves the consumer financial services ecosystem from our offices in New York City and London.
Media Contact
Jonathan O'Connor, Auriemma Group, 1-646-437-6116, [email protected], www.auriemma.group
SOURCE Auriemma Group
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