Key findings
Credit card rewards help with the Christmas spending spree
- One in three Aussies (38%) use their credit card reward points for Christmas gift purchases.
- 35% of rewards credit cardholders use gift vouchers with reward points to help keep Christmas budgets in check.
- 27% of people shop around for the best credit card reward programs ahead of Christmas, to earn or redeem points for Christmas shopping.
- 44% make sure they earn as many points as possible when doing Christmas shopping. This figure jumps to 64% when looking just at female respondents, showing women are the most savvy with their rewards and Christmas shopping.
- 54% of those surveyed view Christmas as a great time to earn credit card rewards points.
Dissatisfaction with credit card reward programs leave Australians wanting more
- Nearly four in five (71%) of Australians with rewards credit cards have a good understanding of what they are getting from their rewards program.
- However, over one in three (38%) of Australians are not satisfied with their current reward offering.
- The biggest area of dissatisfaction is clarity around where cardholders can earn the most rewards points. 44% were unclear about how they can collect the most rewards on their credit cards.
- Other than annual fees, choice of reward redemption options is the most important factor when choosing a credit card. 88% of respondents prioritise annual fees in their choice, with reward options coming in at 79% , followed closely by how the points are valued at 78% .
Millennials are savvy rewards customers, demanding instant gratification from their credit card reward programs
- 71% of millennials (20-34) say they compare multiple rewards program offerings before making a choice on a credit card (compared to just 40% of those aged 45-75)
- 57% of reward credit cardholders would switch providers to get better rewards, with millennials (20-34) even more likely at 67%
- 52% of millennials only make purchases where they can earn points – compared to 27% of those 45-57, and 36% of those aged 35-44
- The research shows 37% of people want instant redemption of their rewards points, with millennials more inclined to demand instant gratification (e.g. cash back rewards or retail vouchers), at 53%.
- Millennials are more interested in redeeming directly for holiday rewards than collecting airline points, whereas over 35s favour the airline points
Regulatory change has not driven a shift in consumer behaviour
- 62% of reward credit cardholders are unaware of the regulation changes on interchange fees
- However, after being told about the changes, 40% of people say regulation changes to industry credit card fees have left them less satisfied with their rewards program
- Only 1 in 8 (12%) have looked around for a new rewards card as a result of the range of interchange fee regulations rolled out on 1 July 2017.
- Nearly half (49%) claim the changes made no difference to them, while 36% believe finding the right rewards credit card is even more important now.
- Only 16% are put off using their rewards cards as often as they did before.
Australians love their rewards points, whether they use them or not
- 56% of people say they would choose a credit card based on the rewards program offered.
- 47% of people say they like to earn rewards points even if they don't use them.
- 41% of cardholders don't have any idea of how many rewards points they have. For those who do, the average cardholder claims to be sitting on over 50,000 points
- Millennials aged 20-34 years are the most savvy when it comes to their rewards points, with 3 in 5 (65%) being aware of what they are sitting on.
- Millennials aged 20-34 years have the lowest points count however, with an average of 35K points, while 35-44 year old's have an average of 56K points, and 45-75 year old's have an average of 65K points.
- 50% of people redeem once a year or less, with over 70% of people saying that they like to save for something big (e.g. flights, electronics, furniture, etc).
- 40% of Australians save credit card rewards points for their annual holidays.
Retail rules the roost for rewards redemptions
- Cash back rewards when shopping, retail vouchers and gift cards, and airline points are the top three reward redemption options for Australian rewards credit cards.
- 23% favour cash back rewards when shopping
- 20% favour retail vouchers and gift cards
- 18% favour airline points
- Millennials aged 20-34 years favour cash back rewards, and like to treat themselves with retail vouchers and international holiday spend, while those aged 35-44 years and 45-75 years still place airline points in their top three redemption choices.
For more details on Citi's range of credit cards and rewards, please visit citibank.com.au/cards.
About the research
In September/October Citi Australia commissioned research agency House of Brand to conduct consumer research amongst Australians with reward credit cards. House of Brand surveyed 1,081 Australian reward credit cardholders, including those with a Citi rewards card and those with a non-Citi rewards card. The aim of the research was to provide statistical insights on credit card rewards attitudes and behaviours.
