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Reward credit cards bring in a lot of data for brands, and according to a recent study by research firm Finder, they also bring in a lot of money. The study found that the typical American spends $2,500 just chasing points, and that almost one-third of all Americans swipe their credit cards solely for the rewards they’ll earn.
The cumulative effect of the search for reward points is $175.8 billion toward the economy, the study found.
The study also found that nearly 90 percent of the spending went toward clothing and accessories, followed by food and drink (88.4 percent), household items (62 percent), technology and electronics (49.7 percent) and shoes (47.6 percent). Literature and music were at the bottom of the list of spending, each with less than 20 percent.
Millennial men were the most prominent purchasers—especially those with higher incomes—swiping for points more frequently and spending nearly double what Millennial women spent. Overall, younger people were more likely to chase points. Baby Boomers were least likely to buy for reward points.
“The results of this study show something that an increasing number of brands have already discovered: cobranded credit cards are an incredibly lucrative, often untapped source of additional revenue,” said Loyalty360 Analyst Steve Taggart.
“By bringing in these ‘point hunters’ that are looking to obtain the absolute maximum bang for their buck, these cards bring consumers through the door that may have otherwise not held a particular brand preference. In the quest to spark the first flames of brand loyalty, these credit cards serve as an invaluable first step and an additional way to provide customers with value beyond antiquated ‘X% off’ discounts.”
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