Australians are increasingly cashing in on loyalty programs by redeeming rewards points for cash in their pocket or supermarket gift cards as they look for more ways to contend with rising living costs.
New NAB insight reveals a significant shift in consumer behaviour over the last 12 months with a 120% jump in the number of people who are preferencing cash over merchandise when it comes to redeeming rewards points.
NAB Personal Banking executive, Kylie Young, said the new insights show how savvy Australians are when it comes to managing rising living costs.
“As living costs rise, Australians are getting even closer to their finances and thinking about where they can squeeze maximum value out of the loyalty programs they have in their wallet,” Ms Young said.
“We’re seeing a big shift in customers using rewards points to cover their groceries and essential purchases rather than treat themselves to a new Espresso machine or hair straightener.”
After cash, NAB insight also reveals that redeeming reward points for gift cards has risen by 16% and the number of people allocating points to travel has increased by 39%.
“Aussies don’t want to miss out on their holiday despite the economic challenges, which is why we’re seeing many people allocate their reward points to airfares.”
NAB’s redemption insights reflect the bank’s recent economic data which shows greater brand loyalty is a key trend for Australians. Today, only 1% of Australians are willing to try a new brand when it comes to their everyday shopping, representing a 14-point decrease since 2020.
“Consumers are increasingly looking to trusted brands and businesses to help them navigate these challenging times, and, along with promotions, they’re increasingly appreciating a helping hand in spreading, managing and tracking costs.”
Ms Young noted that while NAB customers were broadly in good shape, that the bank’s NAB Assist team have been busy helping those who need additional support.
“When customers get in touch with us early, 90% of customers are back on their feet within 90 days. We’re here to help and have options to support Australians through these tough times,” Ms Young said.
- The top three redeemed gift cards were Coles $100, Woolworths $100, and Woolworths $50.
- For more information on practical support for customers managing their financial wellbeing, the NAB site has practical support to improve your financial wellbeing.