The rising popularity of gift cards has been reinforced in a survey released by Citibank today where they were named the most popular and recognised rewards item1.
When people were asked to name three products or offers available through their credit card rewards program, more than half (54%) of people cited gift cards/vouchers as top-of-mind, ahead of home appliances (23%) and hotel accommodation (22%).
Citibank's World of Rewards survey found that around two in three Australians (65%) have a credit card with an associated rewards program while 17% have multiple rewards programs through multiple credit cards.
Head of Citibank Credit Cards Madeline O'Connor said rewards programs had evolved and were becoming more innovative and extensive. "Gift cards are certainly our most popular items - at last count we had 44 different gift cards available to redeem, including the new Citi Prepaid Gift Card. At the moment other key redemption trends are travel and merchandise, especially in the lead up to Christmas.
Spend behaviour
When it comes to credit card usage, 27% of people (the majority of these being Generation Y) said they have been using their credit card to make purchases more often in the last 12 months, compared with 12% who said they were using it less. The average amount spent by people on their most expensive credit card purchase was $5,164.More than a third (36%) of people said they paid for their most expensive purchase with their credit card - despite having the cash available - so they could earn reward points, while 28% didn't have the cash available and 17% used their credit card for an online purchase.
Women are more likely to use their credit card for a purchase because they don't have the cash available, (25% vs 32% of men) whereas men are more focused on using their card to earn reward points even if they have the money available. This may suggest that women have a higher tendency towards instant gratification than men.
People living in capital cities have the highest propensity to use their credit card to earn reward points (40%), compared to 30% of those living in a regional centre and 19% of those living in a rural area.
Redemption behaviour
Many respondents (30%) look forward to getting their monthly statement to see how their points are building up. But when it comes to actually redeeming points, almost one in five (19%) say they don't like to redeem items, preferring instead to see their points build up and up.Other findings showed:
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Previously redeemed an item for the purpose of giving it as a gift (23%)•
Want access to the best offers and privileges available (47%)•
Interested in redeeming reward points instantly to pay for a meal when dining out (21%)•
Offered as an exclusive service from their bank, they would like to be able to purchase online from select overseas retailers and have goods sent to Australia (23%)•
Would consider redeeming points to make a charitable donation (11%)Madeline said: "Outside rewards, there is a whole raft of additional discounts, offers and privileges available to customers but our survey showed that almost one in two (46%) people aren't aware of them. People are missing out on thousands of special offers and discounts across a great range of areas which could add up to hundreds of dollars in savings. Citibank has almost 4,500 of these offers and you can access many of the deals available without additional spending on your credit card."
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