A majority of customers are looking to save on their holiday shopping this year by applying redeemed loyalty rewards toward gift purchases. Sixty percent of American shoppers polled by Colloquy for it’s “Holiday Loyalty Shopper Study” plan to save money on holiday gift purchases by using loyalty program rewards they’ve earned. That percentage represents a 22% increase over the 2013 holiday season.
A dive into a breakdown by age group reveals that the biggest growth in loyalty redemption toward gift shopping is among millennials. Nearly two thirds (63%) of 18- to 24-year-olds plan to use points on gifts in 2014—a jump of 43% over 2013; 71% of 25- to 34-year-old consumers say they’ll redeem reward points for gifts this year, representing a 34% increase over last year; 62% of 35- to 44-year-olds plan to cash in rewards points for gifts, a 19% rise over 2013; and more than half (54%) of consumers 45 years old and older say they’ll trade in points to use as gifts in 2014, which represents a 20% increase over 2013.
But the loyalty reward/gift link doesn’t stop there. According to the Colloquy study, 20% of shoppers polled said they’ll alter their gift ideas based on which items will provide the most sigficant rewards or bonuses, and 35% plan their holiday purchases to gain the most loyalty rewards. What’s more, 40% of women and 31% of men polled say that when shopping this holiday season they plan to choose retailers that offer loyalty rewards. Incentives that ranked highest include gift cards (cited by 52% of shoppers polled), coupons (49%), and cash-back offers (48%).