Redemption Report
Q1 2024
This Quarter’s Key Findings
The twinkling tree lights, and festive wrapping paper are now tucked away, marking the end of the gifting season. Naturally, gift card redemptions have eased off. While the 12.2% drop in gift card redemptions from Q4 is worth noting, it’s a trend we expected for Q1.
Cashback, on the other hand, is up by about 6%. Given the focus on financial planning at the start of the year, cashback is a favorable option. Meanwhile, many people have incorporated travel into their 2024 budgets. Travel redemptions rose by 7.5% in Q1, due to last-minute spring break plans.
With warmer weather and spring celebrations just around the corner, it will be interesting to see what’s in store for Q2.
Q1 2024 – Point Redemption Activity
-
Cash Back
46.7%
Q4: 40.7%
-
Gift Card
30.1%
Q4: 42.3%
-
Travel
16.7%
Q4: 9.2%
-
Merchandise
6.5%
Q4: 7.8%
Top 5 Points redeemed for Merchandise
RAZR anticipated the demand for tech products in redemption offerings. Notably, we highlighted AirPods, wearable tech, and floor care items on our merchandise page, revealing the influence merchandise pages can have on buyer behavior.
Ranked #1
Apple AirPods with Lightening
Charging Case (Gen 3)
-
#2
Apple Watch
SE & Series 9 -
#3
Beats Studio Buds
-
#4
Bissel Deep Cleaners
& Vacumms -
#5
Amazon Echo Dot,
Pop, & Shows
Top 5 Points Redeemed for Gift Cards
Home Depot and Lowes increased in popularity compared to Q4 2024. People are dusting off their work gloves and gearing up for spring projects!
Ranked #1
Amazon – $25 (top)
$50 – $100
-
#2
Target
$25 – $100 -
#3
Walmart
$25 -
#4
Home Depot
$25 -
#5
Lowes
$50
Entertainment
Indoor entertainment options were all the rage in Q1, avoiding the post winter weather. Expect outdoor activities like concerts, theme parks, and sporting events to ramp up in Q2.
Wynonna Judd
Mean Girls
Pearl Jam
The Lion King
Cirque Du Soleil
Matchbox Twenty
Tom Segura
Seattle Kraken vs. Nashville Predators
David Sedaris
Early Q2 Predictions
RAZR makes sure to emphasize the things that matter to people in each quarter’s merchandising.
Spring is the season of celebrating moms, dads, and grads. Making gifts for caretakers and send-offs for scholars a key factor of Q2 redemptions. Featuring items to spoil moms and dads, grad party goodies, and college essentials on merchandise pages could make an impact.
This quarter also ushers in rising temperatures and longer days, fueling people’s eagerness to enjoy the outdoors. Whether they’re looking to upgrade their outdoor entertainment or diving into spring cleaning and DIY projects, redemptions are likely to align with the shift to warmer weather.
Consider Advanced Merchandising to Increase Redemptions in Q2!
Take time to understand your customers’ needs and leverage these insights to build loyalty. At RAZR, 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!