Point-of-sale rewards are a game-changer for loyalty programs, offering an advanced and impactful approach to redemptions that increases cardholder satisfaction and boosts transactional activity.
These innovative redemption options enable cardholders to redeem their loyalty points during or immediately after a purchase, making the reward process seamless and immediate. With ampliFI’s comprehensive suite of Real-Time Rewards—Pay With Points, Fuel With Points, and Checkout With Points—financial institutions can deliver an engaging and rewarding experience that aligns with cardholder behaviors.
- Pay With Points allows cardholders to redeem points for a statement credit that covers the cost of a recent transaction, making it easy to offset expenses.
- Checkout With Points provides a discount on purchases at participating merchants by redeeming points during checkout.
- Fuel With Points offers discounts on fuel purchases at participating providers through point redemption at the pump.
Real-Time Rewards: The Business Case
Real-Time Rewards are particularly effective because they engage cardholders at crucial moments—either during the transaction or immediately afterward. This immediacy helps keep the loyalty program top-of-mind and directly tied to the cardholder’s spending behavior.
“I like to describe it as a modernization of cashback—a way to digitally meet your cardholder in the moment and remind them of the benefits you’re extending for using the card,” says Heidi Young, EVP, Account Executives & Partnerships at ampliFI.
Data from ampliFI’s clients highlights the impact of Real-Time Rewards:
- Clients with Real-Time Rewards see a remarkable 94% retention rate among redeeming cardholders compared to those who do not redeem.
- Real-Time Rewards contribute to a 133% higher average credit purchase volume and a 130% higher average debit purchase volume compared to industry standards.
Increased retention and transaction volume are testaments to Real-Time Rewards’ effectiveness in enhancing cardholder loyalty and driving program success.
Case Study: Pay With Points vs. Cashback Redemptions
What’s the impact of Real-Time Rewards compared to the ever-popular cashback redemption?
Cashback redemptions in loyalty programs provide automatic benefits with minimal cardholder engagement, weakening the connection with the financial institution. The near-100% redemption rate also strains financial resources, posing a persistent cost management challenge.
To emphasize the ROI of Real-Time Rewards, ampliFI conducted a case study introducing Pay With Points into previously cashback-only loyalty programs. The results were tangible:
- Before introducing Pay With Points, 88% of redemptions were cashback. Post-implementation, cashback redemptions dropped to 35%, while Pay With Points soared to 53%.
- After the shift, retention rates increased from 89% to 97%. Redeeming cardholders exhibited 2.7 times more purchase volume than non-redeemers and saw a 10% improvement in retention.
- Adjusting the redemption mix led to a 5% increase in household purchase volume and a 1.5% reduction in Cost Per Point (CPP), translating to cost savings and better program cost control.
“After launching our Pay With Points program, we saw immediate engagement from our members,” says Doreen Wiseman, VP of Paymens at Y-12 Federal Credit Union. “The detailed reports combined with the excellent support from the ampliFI team has made for a great experience.”
Real-Time Rewards are not just a trend—they are a proven strategy for driving higher engagement, increasing purchase volume, and enhancing cardholder satisfaction. By incorporating innovative redemption options like Pay With Points, banks and credit unions can transform their loyalty programs into dynamic tools that offer immediate value and sustained connection with their cardholders.
Ready to activate engagement? Contact us at sales@amplifiloyalty.com to schedule a consultation with our experts and drive success together.