According to a study conducted by Mintel Comperemedia, a credit cards instant rewards program is the primary motivation for consumers to apply for a specific credit card or retail store loyalty program.  Mintel researchers concluded some of the reward prospects that build strong loyalty to banks and retailers.   

Mintel's research found consumers are more geared towards credit card reward programs that they can use with everyday purchases.  Credit card processing fees are often seen by critics to encourage retailers to increase the cost of goods to justify the expenses.  Conversely, retail analysts believe that loyalty programs can reduce retailer's marketing expenses thereby offsetting the cost of interchange fees.  

According to the study, American consumers are beginning to be less fond of frequent flyer reward programs.  Fewer than ten percent of respondents told Mintel researchers that their spending is based on obtaining airline miles.  Most found that saving up frequent flyer miles has become a chore and less rewarding.   

Credit card companies have recently focused on offering time-sensitive, unique experiences involving cultural events, professional sports, and luxury destinations.  Discover’s sponsorship of the Orange Bowl and NFL’s reinvention of its affinity credit card partnership with Barclays allow football fans to get up close and personal with players.  American Express allows ZYNC cardmembers to pick their own favorite reward experiences, ranging from art museum tours to food and wine tastings. 

Even with the allegations from policymakers that retailers increase prices to support these reward programs, Mintel concluded that most consumers prefer these special incentives versus everyday lower prices.  The idea of finding unadvertised bargains is more exciting to consumers compared to getting prices throughout.  It is predicted that if rewards programs vanished tomorrow, consumers would demand similar incentives from retailers.