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Insight of the Day: Gen Z Card Users Are Dissatisfied With Rewards Programs

According to a PYMNTS Intelligence report created in collaboration with i2c, Generation Z consumers, aged 18-25, are highly interested in rewards programs offered by financial institutions. However, the report indicated that Gen Z cardholders expressed the highest levels of dissatisfaction (41%) with their current reward programs, compared to millennials at 28%.

The report highlighted some common friction points that cardholders face when trying to redeem their rewards, with 1 in 3 users experiencing some form of friction. Factors contributing to this frustration included confusing technology, lengthy redemption processes, and unclear redemption details.

To address these challenges and improve customer satisfaction, financial institutions are encouraged to tailor rewards to the appropriate audience. Gen Zers, in particular, expressed a preference for nontraditional rewards such as flash sales, event ticket access, and referral programs. On the other hand, older generations like baby boomers, seniors, Gen X, and millennials favored cash-back offers.

In conclusion, the report emphasized the importance of eliminating friction points in reward redemption processes and customizing rewards to meet the preferences of Gen Z cardholders in order to build a long-term customer base and drive higher levels of satisfaction.

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