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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

  • Cashback

    Cash Back

    45%

    Q3: 43.9%

  • RAZR Card Rewards

    Gift Card

    45%

    Q3: 33.1%

  • Travel

    Travel

    4%

    Q3: 15.1%

  • Merchandise

    Merchandise

    6%

    Q3: 7.7%

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 with Lightening Charging Case (Gen 3)

Ranked #1

Apple AirPods 4

 

  • beats-solo-4-headphones

    #2

    2. Beats Solo 4
    True Wireless

  • #3

    3. Apple
    10.2-inch iPad

  • #4

    Valve Steam
    Wallet $20 Gift Card

  • #4 Shark Cyclone PET Handheld Vacuum

    #5

    Shark Cyclone
    PET Handheld Vacuum

Top 5 Points Redeemed for Gift Cards

The top brands redeemed leaned slightly more toward restaurants compared to Q3:

amazon gift card

Ranked #1

Amazon – $25 (top)
$50 – $100

  • Target $25 – $100

    #2

    Target
    $25

  • Walmart gift card

    #3

    Walmart
    $25

  • Starbucks gift card

    #4

    Starbucks
    $25

  • chipotle gift card

    #5

    Chipotle
    $25

#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.

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