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Half of all loyalty rewards go unredeemed. That's not a minor inefficiency—it's a direct signal that most points programs fail to engage customers when it matters most. For Shopify merchants, redemption rate is the single best indicator of whether your loyalty program is driving revenue or just accumulating liability on your books.
This guide breaks down 19 essential redemption rate benchmarks for 2026, organized by category so you can measure your program's performance, identify where you're leaving money on the table, and build a points strategy that converts passive members into repeat buyers.
Key Takeaways
- 50% is the average, not the goal – Half of loyalty rewards go unredeemed across all programs, but healthy programs see 20-30% active redemption rates that drive measurable revenue.
- Redeemers spend 3.1x more than non-redeemers – The act of redemption itself triggers higher spending, making redemption rate a direct lever for revenue growth.
- Personalization pushes spending to 4.3x – Members who redeem personalized rewards spend significantly more than those redeeming generic offers.
- 73% of consumers actively seek to redeem – The intent is there; most programs just make it too difficult or unappealing.
- Diverse redemption options pay off – 78% of program owners report that offering multiple reward types positively impacts retention and satisfaction.
Understanding Points Redemption Rate
Redemption rate measures the percentage of earned loyalty points that customers actually use. It's the clearest signal of program health—high redemption means customers see value, low redemption means points are collecting dust.
Unlike enrollment or earn rate, redemption rate directly correlates with revenue. Every redeemed point represents a customer returning to your store, adding items to their cart, and completing a purchase. Programs with strong redemption rates create a virtuous cycle: customers feel rewarded, spend more, earn more points, and return again.
For Shopify brands, tracking redemption rate alongside customer retention metrics reveals whether your loyalty investment is paying off or just inflating points liability.
Core Redemption Rate Benchmarks
These benchmarks establish what "good" looks like for points program redemption. Use them to assess whether your program performs at, above, or below industry standards.
1. 50% of Rewards Are Redeemed on Average Across All Programs
This is the baseline. Half of all loyalty rewards issued never get used—representing both lost engagement opportunities and potential liability on your balance sheet. If you're significantly below 50%, your rewards likely aren't compelling enough or the redemption process creates too much friction. Source: Umbrex
2. Healthy Loyalty Programs See 20-30% Active Redemption Rates
While the 50% figure represents total historical redemption, healthy programs see 20-30% of active members redeeming rewards within any given measurement period. This indicates ongoing engagement rather than one-time use. Source: Envive
3. 73% of Consumers Actively Look to Redeem Rewards
Nearly three-quarters of loyalty program members are actively seeking redemption opportunities. The gap between intent and action points to friction in the redemption experience—confusing point values, limited reward options, or poor visibility into available rewards. Source: Forbes
4. Over 40% of Programs Achieve Higher Redemption Through Personalized Rewards
Tailoring rewards to individual preferences—based on purchase history, browsing behavior, or stated preferences—lifts redemption rates for nearly half of all programs that implement personalization. Generic rewards leave value on the table. Source: Rits
Revenue Impact of Redemption
Redemption isn't just an engagement metric—it's a revenue driver. These statistics quantify exactly how much more value redeeming customers deliver to your bottom line.
5. Members Who Redeem Spend 3.1x More Annually Than Non-Redeemers
The spending gap between redeemers and non-redeemers is substantial. Members who actively use their points spend more than three times as much per year as those who don't. This makes redemption rate a direct ROI lever for your loyalty program. Source: Rivo
6. Personalized Reward Redemption Drives 4.3x Higher Spending
When rewards match customer preferences, the revenue impact amplifies. Members redeeming personalized rewards spend 4.3x more than those redeeming generic offers—a 38% improvement over standard redemption. Source: Shopify
7. 83% of Loyalty Programs Report Positive ROI With 5.2x Average Return
More than eight out of ten programs generate positive returns, with the average sitting at 5.2x investment. Programs that optimize for redemption rate typically outperform this benchmark significantly. Source: Rivo
8. Top Loyalty Programs Boost Revenue by 15-25% Annually
The best-performing programs don't just retain customers—they grow revenue. High redemption rates contribute directly to this lift by driving purchase frequency and increasing order values. Source: McKinsey
9. Loyalty Members Generate 12-18% More Incremental Revenue Than Non-Members
This revenue is additive—it represents value you wouldn't capture without a loyalty program. Strong redemption rates amplify this incremental revenue by keeping members engaged and purchasing regularly. Source: Accenture
Consumer Behavior and Program Engagement
Understanding how consumers interact with loyalty programs helps you design experiences that drive redemption rather than frustrate members.
10. 85% of Consumers Say Loyalty Programs Increase Purchase Likelihood
Programs work. The vast majority of enrolled members are more likely to buy from brands that reward them. The question isn't whether to have a program—it's whether your program makes redemption easy enough to capture this intent. Source: Queue-it
11. 73% of Members Modify Spending to Maximize Loyalty Benefits
Nearly three-quarters of loyalty members actively game their purchases to earn and redeem more efficiently. This behavior benefits your brand when redemption is straightforward—and hurts when customers abandon carts because they can't figure out how to use their points. Source: Queue-it
12. 66% Say Earning Rewards Changes Their Spending Behavior
Two-thirds of consumers explicitly acknowledge that rewards influence what and when they buy. This influence extends to brand choice, timing of purchases, and basket composition. Source: Queue-it
Strategies to Improve Redemption Rates
These statistics point to specific tactics that increase redemption and the revenue it drives.
13. 78% of Program Owners Say Diverse Redemption Options Positively Impact Retention
Offering multiple reward types—discount codes, store credit, free products, free shipping, exclusive access—increases the likelihood that every customer finds something compelling. One-size-fits-all rewards limit appeal. Source: Queue-it
14. 59% Average Annual Activity Rate Across Loyalty Programs
Just over half of loyalty members make a purchase within any given year. Programs with higher redemption rates typically see higher activity rates—the two metrics reinforce each other. Source: Queue-it
15. Only 29% of Americans Strongly Agree They Get Relevant Communications
Most loyalty communications miss the mark. Personalized, well-timed redemption reminders—especially before points expire—can significantly boost redemption rates without changing the reward structure. Source: Bond Brand Loyalty
Building VIP tiers into your loyalty structure creates additional redemption pathways and motivates members to reach higher status levels.
Market Context and Program Enrollment
These broader market statistics provide context for why redemption optimization matters in an increasingly competitive loyalty landscape.
16. 92% of Consumers Are Enrolled in at Least One Loyalty Program
Loyalty programs are ubiquitous. The challenge isn't getting customers to join—it's getting them to engage. With near-universal enrollment, differentiation comes from program quality and redemption experience. Source: EY
17. The Average Consumer Has 19 Memberships But Only 9 Are Active
Members are enrolled in nearly twice as many programs as they actually use. Your program competes for attention against 18 others—redemption ease and reward relevance determine whether you're in the active nine or the forgotten ten. Source: Bond Brand Loyalty
18. 52% of Consumers Use Loyalty Programs Weekly
Half of consumers engage with loyalty programs at least once per week. Frequent engagement creates more redemption opportunities—but only if your program surfaces points balances and reward options at the right moments. Source: EY
19. The Global Loyalty Market Will Reach $41.21 Billion by 2032 at 15.3% CAGR
Investment in loyalty infrastructure continues accelerating. Brands that optimize redemption rates now will capture disproportionate value as the market expands. Source: Fortune Business Insights
How to Calculate Your Redemption Metrics
Benchmarks only matter if you can measure your own performance. Here are the formulas you need to calculate redemption rate and related metrics.
Points Redemption Rate Formula
(Total Points Redeemed / Total Points Issued) x 100
Example: You've issued 1,000,000 points and 350,000 have been redeemed. Your redemption rate = (350,000 / 1,000,000) x 100 = 35%.
Active Redemption Rate Formula
(Members Who Redeemed This Period / Total Active Members) x 100
This measures what percentage of engaged members actually use their points within a specific timeframe. Aim for 20-30% on a rolling basis.
Redemption Value Formula
Average Redemption Value = Total Discount Value Redeemed / Number of Redemptions
Track this alongside redemption rate to understand whether customers redeem frequently for small rewards or infrequently for larger ones.
Points Liability Calculation
Unredeemed Points x Point Value = Outstanding Liability
High liability with low redemption indicates a program that's accumulating cost without driving engagement.
How Rivo Helps You Beat These Benchmarks
The statistics in this guide point to specific requirements for a high-performing loyalty program: diverse redemption options, seamless checkout integration, personalization capabilities, and automated reminders. Rivo delivers all of these for Shopify merchants.
Rivo is a retention platform built exclusively for Shopify and Shopify Plus, powering loyalty programs for over 7,000 brands and driving more than $1.5 billion in revenue.
Here's how Rivo addresses the redemption challenges covered in this guide:
- Multiple redemption options in one platform. Rivo Loyalty supports discount codes, store credit, free products, and free shipping—all redeemable directly in Shopify checkout through 8+ checkout extensions.
- Checkout-integrated redemption. Customers can spend points as a payment method without leaving checkout, eliminating the friction that kills redemption rates.
- Automated points expiry reminders. Rivo sends automated emails before points expire, driving redemption at critical moments when customers might otherwise let rewards lapse.
- VIP tiers that motivate engagement. Tier progression based on spend, orders, or points earned creates ongoing motivation to redeem and purchase.
- Analytics that track what matters. Rivo's dashboard includes 20+ reports on program performance, points liability, and redemption trends—giving you the data to optimize continuously.
Brands using Rivo consistently outperform industry benchmarks. Kitsch generated $5.8M in loyalty-attributed revenue with over 1M redemptions. OSEA Malibu achieved a 77% repeat purchase rate among members who redeem rewards.
Month-to-month pricing starts at $49/month. No annual contracts. White-glove onboarding included on Plus and Enterprise plans.
Frequently Asked Questions
What is a good redemption rate for a points program?
The industry average is 50% of all points issued, eventually getting redeemed. However, healthy programs see 20-30% active redemption rates within any given period. If you're below 20%, focus on making rewards more accessible and valuable—and communicate point balances more frequently.
How does redemption rate impact loyalty program ROI?
Redemption rate directly correlates with program ROI because redeemers spend 3.1x more annually than non-redeemers. Programs with high redemption rates generate more revenue per member, offsetting the cost of rewards and delivering positive returns. The average loyalty program ROI is 5.2x.
Why do customers not redeem their loyalty points?
The top reasons include: rewards requiring too many points to access, confusing redemption processes, lack of awareness about point balances, unappealing reward options, and friction in the checkout experience. 38% of brands cite getting customers to redeem as a major operational challenge.
How can I increase my loyalty program's redemption rate?
Focus on three areas: reduce friction by integrating redemption directly into checkout, offer diverse reward options that appeal to different customer preferences, and communicate proactively through points balance updates and expiry reminders. Programs that personalize rewards see over 40% higher redemption rates.
What's the difference between redemption rate and activity rate?
Redemption rate measures the percentage of issued points that get used. Activity rate measures the percentage of loyalty members who make a purchase within a given period. The average activity rate is 59% annually. Both metrics matter—high activity with low redemption suggests engaged members who aren't finding value in the rewards offered.
