News
$205 Holiday Spending Tip for Every American Household
Dec 7, 2011
Tapping Unused Reward Program Points and Miles for a Holiday Windfall
CINCINNATI (December 7, 2011) – Frugal fatigue, deep discounts, lower gas prices and the improving job market all may have contributed to America’s Thanksgiving weekend and Cyber Monday shopping splurge. But what will sustain the momentum through the economically critical remaining weeks of the holiday shopping season?
The answer from COLLOQUY is $205 in spending power that U.S. households may not realize they possess in the form of unredeemed points and miles from customer reward offerings.
Taking stock of unredeemed points and miles earned in department store and other retail loyalty programs, frequent flier plans and credit card reward programs tops a list of holiday spending tips from Kelly Hlavinka, managing partner of COLLOQUY, a LoyaltyOne company that is a leading provider of loyalty marketing research, publishing and education.
Hlavinka’s tips list also features budget-stretching advice on consolidating rewards, double dipping and taking full advantage of the perks that come with loyal customer status.
The average U.S. household active in reward programs earns $622 worth of points and miles each year but does not redeem $205 of those rewards, according to 2011 research from COLLOQUY and Swift Exchange.
The macro numbers – American businesses issue $48 billion in reward points and miles annually, of which one-third, $16 billion in value, is unused – were released this year in a report titled 2011 COLLOQUY & Swift Exchange Forecast of U.S. Consumer Loyalty Program Points Value.
“For those consumers looking to stretch the budget at this time of year, this is money just sitting on the table, ” Hlavinka said. “Even if the $205 is used for self-gifting once all those on your shopping list are covered, it’s a well-earned bonus.”
Other COLLOQUY survey research has shown that nine out of ten U.S. reward program participants reported themselves to be the primary beneficiary of their redemption experience.
Hlavinka offers four more tips for using customer rewards points and miles to stretch holiday spending dollars --
• Consolidate earnings. Focus spending within a favorite rewards program or on just a few cards in order to get further faster. The 2011 COLLOQUY Loyalty Census shows that Americans hold two billion memberships in loyalty rewards program, and the average household belongs to 18 programs but actively participates in just eight of them.
• Take advantage of double dipping. Most loyalty programs also include a credit card component. It’s one of the fastest ways to increase points – using a rewards credit card at merchants that also have their own loyalty program.
• Don’t forget soft benefits. Reward program members often have access to extended shopping hours, reduced shipping costs and other cost-saving perks not available to non-members.
• In the spirit of the season, take advantage of opportunities to use points as gifts to pro-environmental causes or to other charitable organizations.
Hlavinka offers the following insight for holiday shoppers young and old this holiday season. Savings-conscious Young consumers are more motivated this year to take full advantage of their unused points and miles than Seniors. Research results contained in the 2011 COLLOQUY Cross Cultural Loyalty Study show that U.S. consumers in the 18-25 year-old age group are twice as likely as people age 60 and above to say money means security and is better saved than spent.
