Australian purchases are still motivated by points
Two-thirds of Australians make purchases for the chance to earn points.
Despite slashed earn rates and cuts to rewards programs, Australian credit card holders are still motivated by the potential to earn points. According to survey results released by the Velocity Frequent Flyer program on Sunday, two-thirds of Australian credit card holders are more likely to make a purchase or use a service if they can earn points.
According to the research, the main motivators for points chasers were store vouchers (64%) and frequent flyer points to exchange for flights and travel (62%). It’s no surprise then that the most popular rewards were vouchers that can be redeemed in store (71%) and flights and upgrades (66%).
The survey also revealed that the younger you are, the more likely you are to chase points. 80% of Generation Y respondents (aged 20-35) were motivated to spend if they could earn points versus 69% of Gen X participants and only 57% of Baby Boomers. As such, Gen Y respondents were the most active when redeeming their points. While one in four Gen Y participants redeem their points six or more times a year, only 18% of Gen X and Baby Boomers redeem their points with the same frequency.
Conveniently, the airline loyalty program released the survey results to coincide with Velocity’s Billion Point giveaway campaign. As we reported earlier this month, Velocity is giving its frequent flyers a chance to receive their share of 1 billion Velocity Points when they transfer credit card rewards to their frequent flyer program. If you exchange your points by 31 March 2017, you’ll receive 15% bonus points. Plus, ANZ cardholders can enjoy 35% extra bonus points (bringing their total bonus points bounty to 50%) when they transfer their credit card rewards to Velocity Points during the promotion.
As well as ANZ, the other banks that will enjoy the 15% bonus offer include American Express, Commonwealth Bank, NAB, Westpac, Citi, St.George, Bank of Melbourne, BankSA, HSBC, Diners Club, Card Services, Suncorp Bank, Bank of Queensland, Coles and flybuys. See our guide on how to transfer credit card rewards points to your Velocity account to take advantage of this offer.
With the interchange fee regulations arriving on 1 July 2017, we’ve seen nine financial institutions introduce changes that have reduced the value of their reward programs. As such, it’s interesting that Velocity’s research found that cardholders are still motivated by the opportunity to earn points. See our guide for a full list the card issuers that will change their reward programs between now and the new financial year.