Types of Consumer Rewards, Trends and Tips to Choose the right one for you

Shuaib Azam

min. read

July 10, 2025

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Consumer rewards

When it comes to consumer rewards, the world is showing a clear shift in preferences, and brands that pay attention to these details are the ones winning hearts (and wallets).

Let’s dive into what’s working worldwide, take a closer look at Indian consumers, and see why the right reward can be a game changer for your loyalty strategy.

Types of Consumer Rewards

1. Cash Rewards

Cashback, direct discounts, bill credits. Globally, this remains the reigning champion. According to a 2024 Deloitte survey, 86% of consumers worldwide prefer financial rewards .

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Globally, cash reigns supreme, but in India, the intersection of tradition, digital innovation, and rising affluence makes for a dynamic rewards landscape. Convenience rules in metros, while emotional and festive resonance matters in smaller towns.

2. Points-Based Rewards

Point based rewards convert every purchase into potential savings. Think air miles, free groceries, or digital perks. Nearly 43% of global consumers say they’re drawn to programs with flexible points redemption (Source: PwC). I

3. Experiential Rewards

These are things like event access, gourmet getaways, virtual VIP hangouts. Globally, these are on a steep rise: 72% of Gen Z and value 'having fun' among their top values. In India, premium credit cards and brands like Taj InnerCircle are tapping this, offering rare tours and gourmet dining to distinctively woo affluent urbanites.

4. Digital Rewards

Gift cards, streaming credits, subscriptions, and in-app perks. As commerce goes digital, so do rewards. 78% of consumers globally now prefer access rewards and incentives online. In India, the uptake is even sharper in metros, with Amazon Pay and Google Pay reporting year-on-year double-digit growth in digital reward redemptions.

5. Merchandise

Physical goods still draw a loyal crowd. Things like branded swag, electronics, or festive hampers. Indian festive gifting culture and brand loyalty mean physical rewards draw fanfare during Diwali and other festivals.

Global Consumer Reward Preferences (2024)

Redemption Rates

Cash: Approx. 90% (McKinsey, 2024). Simple, instant, hard to resist.
Points: 60–70% (Bond, 2023).
Experiences: <50% but sky-high NPS (Deloitte, 2024).
Digital: 75% among Gen Z, surging in India’s digital-first segment (Statista, 2024).
Merchandise: Variable, generally under 50% (Loyalty360, 2023).

What to use when

Reward Type	Optimal Brands	Ideal Audience	Best Use
Cash	Mass-market retail, fintech, utilities	Price-sensitive, value-driven segments	Immediate value, customer acquisition & retention
Points	Airlines, supermarkets, gamified retail	Frequent shoppers, loyalty enthusiasts	Habit-building, ongoing engagement
Experiences	Premium, lifestyle, youth-oriented brands	Millennials, Gen Z, affluent customers	Emotional loyalty, brand differentiation
Digital	E-commerce, gaming, OTT subscriptions	Digital-natives, urban millennials	Instant rewards, high engagement, tech-savvy users
Merchandise	Brands with strong emotional loyalty, festive campaigns (India)	Brand loyalists, families, rural & festive audiences	Brand affinity, festivals, focused promotions

As more brands seek to personalize and digitize rewards, platforms like Hubble are setting the pace.

Hubble offers a robust consumer rewards infrastructure for brands and enabling businesses to deliver tailored, instant rewards through cash, points, merchandise, or experiences, all in one seamless ecosystem.

With analytics rooted in Indian consumer data and a global outlook, Hubble empowers brands to build programs that truly resonate.

Ready to elevate your rewards game? Drop us a note here to schedule a quick call.

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Short summary

Consumer reward programs are most effective when tailored to their audience and context: globally and in India, cash and points remain the most popular for driving participation and habit, while digital and experiential rewards are rapidly gaining traction among younger, urban consumers. Merchandise rewards still hold sway during festive campaigns and with brand loyalists. The optimal choice depends on your brand’s goals, customer demographics, and market trends, so a strategic mix, powered by data and local insights, delivers the strongest loyalty impact.