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