Consumers switching credit cards for better rewards program

According to a survey by market research firm J.D Power, Canadian consumers are increasingly looking for better rewards programs when it comes to choosing a credit card and most are also willing to switch cards for better rewards plans.

The firm did an online survey in May of more than 6,000 customers who used major credit cards in the past three months.  The majority credit card users that were surveyed (87 percent) stated that they were enrolled in a rewards program, and about 48 percent of them had switched credit cards in search of a better rewards program.

Now a better rewards program does not necessarily mean more points on their average $600.00 of monthly spending, but in the ease of using and understanding their point programs. If the user doesn’t know how to redeem those points to unlock the savings or benefits, then the rewards lose their value and that can also lead to a user switching cards for a different rewards program.

64 percent of the users surveyed said they understood how to redeem rewards offered by their credit cards, but 36 percent said they did not understand the process, which lead to their dissatisfaction with the program.

So, it looks like in the rewards game knowledge and ease of use gets you card holders.

By Jamie Barrie