Do consumers treat points the same as traditional money? And how do they choose to spend points versus money? data They described over 29,000 unique loyalty point earning and redemption transactions conducted by 500 airline loyalty program consumers over a two-year period. They found that points Users fall into four distinct categories: 1) 1) Cash Proponents – Prefer cash even if points and cash have the same value in terms of purchasing power; 2) Currency Neutrals – View points and cash as interchangeable and value them equally based on monetary value; 3) Points Gamers – Actively seek out the most advantageous points redemption opportunities and choose to spend points especially when the value of points significantly exceeds the value of cash; 4) Points Lovers – Value points over cash even if they have the same or less purchasing power. In this article, we explore the strategic implications of these findings for companies that run loyalty programs.
