Redemption Report
Q4 2024
This Quarter’s Key Findings
As anticipated during the holiday season, gift-giving trends significantly influenced redemption behaviors. Gift Cards took the lead as the most redeemed category, capturing 44.95% of redemptions—a significant rise from last quarter’s 33.1%, driven by holiday shopping trends. Historically, this category peaks in Q4 due to its practicality as a gift. Cashback followed closely at 44.87%, slightly down from 43.9% in Q3, likely affected by the surge in Gift Card popularity.
Merchandise accounted for 5.97% of redemptions, a slight decrease from 7.7% in the previous quarter, yet it continued to outperform Travel for the second consecutive quarter, attributed to the seasonality of gift-giving. Travel, on the other hand, saw a sharp decline to 4.12% from 15.1% in Q3, with 75% of travel redemptions allocated to airfare and 25% to other travel options. Events remained in last place at 0.09%, reflecting minimal fluctuation from the prior quarter and maintaining its usual share of point redemptions.
Q4 2024 – Point Redemption Activity
Average Redemption Value by Category:
Air Travel: $743.80 (up from $714.66 in Q3)
Events: $370.99 (down from $519.06 in Q3)
Electronic Merchandise: $22.19 (down significantly from $302.06 in Q3)
Cash Back:
-
- Statement Credit: $213.26 (similar to Q3)
- Cash Deposit (Checking/Savings): $165.77 (up from $135.66 in Q3)
Other Merchandise: $184.95 (virtually unchanged)
Gift Cards: $98.67 (slightly lower than in Q3)
Gift Card Redemption Type
Electronic gift cards experienced a substantial increase in popularity, likely due to their convenience for last-minute holiday gifting:
Electronic Gift Cards: 42% (up from 28% in Q3)
Physical Gift Cards: 58% (down from 72% in Q3)
Top 5 Points redeemed for Merchandise
Apple products continued to dominate the Merchandise category, reflecting their strong consumer appeal.
Ranked #1
Apple AirPods 4
Top 5 Points Redeemed for Gift Cards
The top brands redeemed leaned slightly more toward restaurants compared to Q3:
Ranked #1
Amazon – $25 (top)
$50 – $100
#6 Home Depot ($100) #7 Applebee’s ($25) #8 Texas Roadhouse ($25) #9 The Cheesecake Factory ($25) #10 REI ($100)
Top Events by Point Redemptions
Although Events remain a niche redemption category, they represent unique and memorable experiences for customers. Here are a few highlights from Q4:
• Kathleen Madigan
• Phoenix Suns vs. Atlanta Hawks
• Detroit Red Wings vs. Washington Capitals
• Therapuss Live with Jake Shane
• Soul Asylum
• Hamilton
• Amsoil Championship Snocross Series5
Summary
The Q4 redemptions reflected the seasonal surge in gift-giving, with Gift Cards solidifying their dominance. Cashback remained a strong contender, while Merchandise continued to outperform Travel. These trends align with historical data, highlighting the influence of the holiday season on customer redemption behavior.
As we move into Q1 2025, we’ll monitor if these patterns stabilize or shift, particularly as Travel may regain popularity in the spring and summer months.