Brits show how they can still get a kick out of shopping without spending a lot of money
THE best things in life really are free – according to 59 percent of Brits who get a kick out of buying beauty products, clothes and groceries without breaking the bank.
A survey of 2,000 adults found that 82% used loyalty points to make future purchases cheaper, while two-thirds used them to reduce their grocery shopping costs.
Nearly three-quarters of 74% use points to supplement their income and save money.
Nine in ten Brits (92%) are members of at least one loyalty program – an increase of 17% on last year.
This comes as Virgin Red launches its second report, The Points Index, 'Making Points Go Further', which takes stock of the mood in the country and looks at how government spending and behavior has changed over the past year.
The report shows that over a third of 35% collected more loyalty points in the past twelve months than ever before, as people got smarter to cope with the ongoing cost of living crisis.
Internal Virgin Red data showed that redemptions increased in November and December, with members redeeming their loyalty points for rewards such as flights, train tickets, wine and gift vouchers.
The spike signals a possible increase in last-minute travel and gift buying ahead of the holidays. This highlights how people are making their money work harder by using points for gifts or reducing the cost of their train journey home.
With travel firmly back on the radar, more than half (55%) plan to use their hard-earned points to reward themselves with things they wouldn't normally be able to afford, like vacations or flights.
Andrea Burchett, Chief Loyalty Officer and Managing Director at Virgin Red said: “For some, rewards points offer a way to supplement rising everyday costs such as grocery bills.
“But for others, it's a positive way to treat themselves, whether it's small day-to-day victories or sticking to something big like international travel.
“Experiences, and especially travel, are a clear focus for 2024, so it's great to see people using loyalty points to prioritize this, while being mindful of the existing economic pressures.”
However, the idea that high-value rewards are actually feasible has receded, according to the research, as 27% think you can use them for expensive items like flights or theater tickets – down 15% from 2022.
For those claiming higher reward items, flights to New York, Orlando and Los Angeles are the most popular locations, while Paris and Amsterdam are the top destinations in Europe.
When it comes to dream vacations, the Maldives and Tokyo top the list.
But more than half (52%) admit to feeling guilty about spending money on something indulgent knowing others are struggling financially, and only 10% of adults feel more confident about the state of the economy compared to last years around this time.
This goes some way to explaining why 36% of the population plans to be kinder to themselves by 2024 with small but frequent self-gifts.
This includes coffee, dining out and wine, as well as trips to the cinema – with the release of Oppenheimer and Barbie last July, Virgin Red members saw cinema ticket redemptions two and a half times more than any other month in 2023.
Virgin Red's Andrea Burchett added: “While we're not offering a crystal ball to see what lies ahead in 2024, we hope the report helps people better understand the loyalty programs they are members of and, importantly, how their money goes – all you have to do is decide which reward you want to go for.”
Why are the British cutting their spending?
In other news, a savvy shopper has revealed how you can get FREE coffee every week if you're signed up to a particular energy supplier.
We've put together a handy list of the exact times you can pick up yellow sticker bargains in the major supermarkets. It could save you hundreds of euros.
Check out our list of lesser-known loyalty programs that can get you free food, coffee, and gas.
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