Enterprise TechCredit card providers that haven’t refreshed their rewards program risk losing customers, warns a study of 3,233 U.S. consumers conducted by PYMNTS and i2c, a payments processing company.While reward points are broadly popular — who doesn’t like free rewards? — consumers want personally relevant offers that are easy to redeem. Younger consumers want a fully digital experience they can access through their phones — no email for them, much less paper coupons.
“Rewards programs with lengthy redemption processes or no personalized offers drive consumers away,” the study concluded. Roughly 31% of consumers said that lengthy redemption procedures were a significant issue. The same percentage said they had experienced friction in redeeming rewards in the past 90 days, with 23% reporting confusing technology, 23% mentioning long redemption processes.
Hanks said banks should take another look at their rewards structure to attract Gen Z and Millennials because young consumers can provide value over the long term. Some features have changed on cards. Rental car insurance programs, such as collision damage waiver, have disappeared on some card programs, he said.