Redemption Report
Q3 2024
This Quarter’s Key Findings
Q3 rolled in to the sound of school bells. Unsurprisingly, back-to-school season impacted redemption patterns as cardholders sharpened their pencils for the academic year ahead.
Gift card redemptions experienced an increase, fueled by the back-to-school frenzy. The convenience of gift cards continues to resonate with customers, making them a go-to choice for busy shoppers eager to check off their lists. Meanwhile, travel redemptions held steady, showcasing a consistent interest in both local getaways and international adventures, despite a slight dip in air travel compared to the previous quarter.
Cashback maintained its top spot, but its gradual decline hints at a growing curiosity among consumers for more diverse redemption options. Merchandise redemptions, however, decreased to 7.7%, as the focus shifted towards school essentials rather than luxury splurges.
Overall, Q3 showcased a dynamic balance between practicality and the desire for tangible rewards. As consumers embraced the seasonal shift, their choices revealed a savvy mix of immediate needs and the excitement of a new academic year.
Q3 2024 – Point Redemption Activity
-
Cash Back
43.9%
Q1: 44.1%
-
Gift Card
33.1%
Q1: 31.5%
-
Travel
15.1%
Q1: 15.5%
-
Merchandise
7.7%
Q1: 8.7%
Average Redemption Values by Category
Travel Air: $714.66
Events: $519.06
Electronic Merchandise: $302.06
Other Merchandise: $184.68
Gift Cards: $108.07
Cash Back: Statement Credit – $216.58, Cash deposit (checking/savings) – $135.66
Gift Card Redemption Type
Despite the rise of electronic gift cards, physical ones remain the top choice for consumers.
Electronic Gift Cards: 28%
Physical Gift Cards: 72%
Top 5 Points Redeemed for Merchandise
Tech ruled this season as consumers turned to premium electronics for both learning and leisure.
Ranked #1
Apple AirPods with Lightening
Charging Case (Gen 3)
-
#2
Apple Watch Series 9
-
#3
Microsoft
Xbox Series X1 TB -
#4
Beats Solo 4 True Wireless
On-Ear Headphones -
#5
JBL- Adaptive Noise
Cancelling Wireless
Top 5 Points Redeemed for Gift Cards
Everyday essentials dominated, reflecting a focus on practical needs during back-to-school season. The popularity of $25 gift cards points to budget-conscious shopping and smaller, frequent redemptions over larger purchases.
Ranked #1
Amazon – $25 (top)
$50 – $100
-
#2
Target
$25 – $100 -
#3
Walmart
$25 -
#4
Starbucks
$25 -
#5
Home Depot
$100
#6 Lowes ($100-50-25) #7 Chipotle ($25) #8 Texas Roadhouse ($25) #9 Applebee’s ($25) #10 Olive Garden ($25)
Top Events by Point Redemptions
Live events took the spotlight this season, as point redemptions revealed a strong appetite for performance entertainment.
- Sabrina Carpenter Tour Tickets
- WWE: Raw
- Mary Poppins
- Wichita Symphony Orchestra
Early Q4 Predictions
Deck your merchandise page with gifts and gadgets! As we transition into Q4, the holiday season will significantly influence redemption patterns once again. Cardholders are expected to focus more on tangible items and seasonal experiences as the year comes to a close.
Get ready for a gift card frenzy! Demand for merchandise and gift cards is set to rise significantly, so ensure your merchandise page showcases the top gift cards and must-have items on cardholders’ lists.
At RAZR, we are dedicated to setting our cardholders up for success. We’ll be updating our merchandise page to highlight essential items for the holiday season, ensuring a smooth transition into the festivities ahead.
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