How are consumers using loyalty points in India?

Consumers in India are increasingly using loyalty points for everyday expenses like food and groceries, rather than saving them for larger purchases.

What is the average saving on food and groceries with loyalty programs?

The average savings on food and grocery orders through loyalty programs can reach about 8% of the order value.

Why are loyalty programs focusing on interoperability?

Loyalty programs are focusing on interoperability across categories to boost repeat usage and increase the lifetime value of customers by offering broader benefits.

Home / Business and Economy / Rewards Go Everyday: Points Now Fund Daily Spending

Rewards Go Everyday: Points Now Fund Daily Spending

17 Feb

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Summary

Reward points now fund routine expenses, not just big purchases.
Food and groceries offer highest average savings at 8%.
Loyalty programs are focusing on interoperability and frequent use.

Rewards Go Everyday: Points Now Fund Daily Spending

The Indian loyalty program market is witnessing a significant behavioral shift, with consumers now prioritizing the use of reward points for daily expenses over occasional indulgences. This trend is evident across various platforms, where food and groceries have emerged as top categories for savings, offering an average of 8% on order values. This marks a move from high-ticket redemptions to routine usage, effectively providing consumers with 'embedded liquidity' at checkout.

Companies like TWID and POP report a surge in reward point redemptions, unlocking substantial value for users and reinforcing brand loyalty through consistent engagement. While credit cards historically anchored the rewards economy, consumers now expect these benefits to translate directly to their preferred shopping and delivery platforms. This has led major marketplaces and retailers to enhance their loyalty engines, introducing layered benefits and cross-category redemption options.