American Marconi Wireless News - New Research from The Wise Marketer and Engage People Reveals 90% of Consumers Are Willing to Switch Brands for Better Rewards

TORONTO, ON / ACCESS Newswire / March 11, 2025 / Engage People, the only loyalty network that enables program members to pay with points directly at checkout, commissioned a new survey from The Wise Marketer as part of its ongoing research series on consumer loyalty trends titled "Cashing Out: What Consumers Expect from Loyalty Programs." The report found that 90% of consumers are open to switching brands, underscoring the growing importance of financial-based rewards-such as the ability to Pay with Points (PwP)-in driving consumer retention and engagement.

The survey, which was conducted among 1,001 U.S.-based consumers in November 2024, found that despite widespread participation in loyalty programs, only 12% of consumers identify as truly brand loyal, emphasizing that competitive incentives drive retention more than brand attachment. The top three factors influencing brand switching include:

• Price (69%) - The most significant driver behind consumer switching behavior

• Loyalty program benefits (53%) - A strong incentive for staying engaged

• Special promotions and discounts (51%) - A key motivator in purchasing decisions

"It's not that surprising to see that price is the leading driver of switching behavior from one brand to another," said Aaron Dauphinee, CMO of The Wise Marketer Group. "More than half of survey respondents indicated that loyalty program benefits can be an inducement, slightly bettering special promotions and discounts. When you ask consumers what benefits they prefer, cash back or credit has always led. We see that in this report, but the findings suggest that the combination of 'what' consumers can redeem for, such as merchandise at the retailer, and 'how' they can redeem, such as paying with points, are significant."

Loyalty Program Disengagement Remains a Major Challenge

While many consumers enroll in multiple loyalty programs, 47% have stopped participating in at least one program, revealing significant disengagement. The two primary reasons for this trend are:

• Difficulty in earning rewards (51%) - Consumers are frustrated by slow or complex point accumulation

• Lack of relevant or appealing rewards (41%) - Benefits fail to align with consumer needs

One of the most effective ways to combat disengagement and boost member engagement is by offering the ability to exchange points for cash-like value at checkout. The study found that 78% of consumers would engage more with a loyalty program that provides 'Pay with Points' as an option, underscoring the demand for flexible redemption solutions that make rewards immediate, meaningful, and easy to use.

Financial Rewards Dominate Consumer Preferences

When it comes to loyalty program engagement, consumers overwhelmingly favor tangible financial benefits over "softer" experiential perks. The top engagement drivers include:

• Cashback or credit (86%) - The most preferred redemption option

• Price-oriented incentives (65%) - Discounts, promotions, and rebates

• Loyalty-driven incentives (61%) - Points redeemable for goods and services

Consumers also favor redemption options that directly reduce their costs. The research found that 64% of consumers prefer the ability to Pay with Points at checkout, further underscoring the demand for seamless, flexible redemption options that provide immediate financial relief.

"Loyalty today isn't a given - it's something brands have to continuously earn by delivering tangible and immediate value," said Len Covello, CTO of Engage People. "Consumers are actively seeking rewards programs that make it easy to redeem points in ways that benefit them. When those expectations aren't met, they move on. For example, providing the ability to pay with points helps brands stay competitive by providing the flexibility and financial relief consumers want, ensuring engagement isn't just transactional but long-term."

This year's study highlights a continued shift toward financial-based rewards and cost-saving incentives in consumer loyalty preferences. In 2022, The Wise Marketer found that 78% of consumers cited earning rewards as their top reason for joining a loyalty program - a number that climbed to 87% in 2024.

Discover how Engage People can help your loyalty program drive engagement with PwP by visiting www.engagepeople.com.

About Engage People

Engage People is the only loyalty network that enables program members to pay with points directly at checkout. The global technology provider connects loyalty programs with global payment systems and online retailers, and covers 100% of the top purchase categories in North America. Leading banks and retailers around the world rely on Engage People for its first-of-its-kind loyalty network and pay-with-points capabilities. Engage People is headquartered in Toronto, Ontario, Canada and has offices in the U.S., Canada and Italy. For more information visit: www.engagepeople.com.

About The Wise Marketer Group

Wise Marketer Group (WMG) is an education, advisory, and media company serving as the trusted steward and advocate for the global customer loyalty marketing industry. WMG publishes TheWiseMarketer.com (TWM) as the global source of timely, authoritative and well-informed content featuring news, research, and insights. TWM is known as the Global Voice of Customer Loyalty, having served the industry for over 15 years.

Loyalty Academy™ (loyaltyacademy.org) is owned and operated by WMG, providing a proprietary, practitioner-based, globally recognized loyalty marketing education curriculum through digital and in-person learning formats. The Loyalty Academy™ is the only source for earning the Certified Loyalty Marketing Professional™ (CLMP™) designation.

WMG Advisory & Research provides services to brands and providers in the loyalty industry through a trusted advisor approach, delivering market research and insights, executive and operational business consultation, partnership and vendor evaluation, and M&A discovery.

For more information, visit https://thewisemarketer.com/ and https://loyaltyacademy.org/.

CONTACT:

Shazana Farook
Caliber Corporate Advisers for Engage People
[email protected]

SOURCE: Engage People

View the original press release on ACCESS Newswire

A.Mahlangu--AMWN