This week, Reach3 Insights, in collaboration with PayPal, announced new research uncovering the powerful role that rewards play in consumer payment decisions. Using Reach3’s conversational, mobile-first approach, the study revealed that consumers’ preferences go far beyond dollars and cents, and that rewards drive loyalty, shape behaviors, and deliver emotional benefits that influence how people shop and pay. In fact, 81% of consumers say they impact their shopping and payment behavior.
“Rewards drive real behavior, and when executed well, they can drive loyalty in a meaningful way,” said Sean Campbell, senior vice president at Reach3 Insights. “Our research with PayPal shows that there’s a lot of nuance in this space and highlights the need to use modern research techniques to really understand what matters to different customers.”
The project combined quantitative, qualitative, and video feedback deployed via the Rival Technologies platform, along with AI-enabled tools and an emotional elicitation exercise to capture deeper insights.
Among the key findings:
Cashback beats points: 68% of study participants said they prefer cashback for its simplicity and instant gratification, compared to 32% who prefer points.
Rewards drive behavior and emotion: 81% make shopping choices based on rewards; 33% said that thinking about them gives them feelings of satisfaction and joy.
Rewards influence loyalty: 63% say rewards make them feel more valued as a customer, and nearly half (49%) are more likely to recommend a brand because of related programs.
Generational differences also emerged. While Boomers and Gen Xers lean toward practical rewards tied to everyday purchases, younger consumers prefer flexible, gamified, and shareable experiences that align with digital wallets and social platforms.
“This study highlights how modern research methods can get to the heart of what motivates consumers,” said Leigh Admirand, executive vice president at Reach3 Insights. “By blending conversational feedback with AI, we’re uncovering not just what people do, but why they do it, and that’s the key to designing more meaningful customer experiences.”
