As Canadians continue looking for ways to make their money go further, new survey data commissioned by PC Financial reveals while rewards programs are widely used across the country, many Canadians feel they’re not maximizing their benefits.
In fact, more than half of rewards program participants (56%) say they don’t make the most of their rewards, while 53% believe they’re leaving rewards unclaimed.
The findings point to an interesting disconnect: Canadians value rewards and want to earn them, they’re not effectively using the loyalty programs they already have.
Key findings include:
- 85% of rewards members say they at least try to maximize their rewards, yet only 40% actively optimize wherever possible.
- 50% of rewards program participants say they don’t think about rewards despite being enrolled.
- Cashback remains Canada’s most popular rewards option (45%), but 72% of cashback users earn less than $500 annually (average value: $379).
- Canadians using travel rewards programs report higher returns, with 36% earning $500 or more annually (average value: $661).
- Rewards influence everyday spending decisions, particularly for groceries (86% have optimized rewards when grocery shopping), online shopping (85%), dining (83%) and gas purchases (80%).
- While 71% of Canadians say rewards would influence their decision when choosing a mobile plan or device, only 23% actively try to maximize rewards on mobile purchases.
Eduek Brooks, Finance Expert, shared her thoughts on the situation.
Question: Why do you think there’s such a significant gap between Canadians’ intention to maximize rewards and their actual behaviour?
Answer: I think there’s a significant gap between Canadians’ intention to maximize rewards and their actual behaviour because most people are busy and don’t have the time or energy to actively manage multiple rewards programs, track promotions, or learn complicated redemption rules.
Many consumers sign up for rewards programs with the best intentions, but if earning and redeeming points feels complicated, they are less likely to engage with the program consistently. Over time, points can go unused simply because people forget about them or don’t understand how to get the most value from them.
That’s why simplicity matters. The easier it is to earn points through your everyday spending and redeem them on things you already need, the more likely you are to follow through and actually benefit from the rewards.
Q: What are the most common mistakes consumers make that lead to unclaimed or underutilized rewards?
A: One of the most common mistakes consumers make that leads to unclaimed or underutilized rewards is choosing a rewards program that doesn’t align with their regular spending habits or items they actually value.
Many rewards programs make it easy to earn points, but the redemption process can be restrictive. You may only be able to redeem points during certain promotional periods, at specific retailers, or on a limited selection of products and services. When consumers don’t find value in those redemption options, their points often sit unused or are forgotten altogether.
Consumers should always choose a rewards program that makes it easy to redeem their points and offers flexibility in where they can redeem them. PC Optimum points offer this type of flexibility, allowing you to redeem points on everyday essentials like groceries, household items, gas, and even mobile plans. If you have a PC Mastercard, you can also redeem your PC Optimum points toward paying down your credit card balance. Having multiple redemption options makes it easier to use your points regularly and get the most value from the rewards you earn, reducing the risk of them going unclaimed.
Q: How can retailers and financial service providers simplify rewards programs to help customers get more tangible value?
A: Retailers and financial service providers can simplify rewards programs by making it easy to both earn and redeem points. The more straightforward the process, the more likely consumers are to fully utilize the program and take advantage of the rewards available to them.
They should also make the redemption process transparent so consumers know exactly what they are getting when they sign up. This includes clearly communicating how points are earned, what they can be redeemed for, and how much those points are worth.
The best rewards programs remove complexity and make it easy for consumers to see and understand the exact value they are getting. When people understand the benefits and can redeem rewards without jumping through hoops, they’re much more likely to get tangible value from the program.
Q: Given that cashback is most popular but often yields lower returns, should consumers be shifting toward other reward types like travel—and why?
A: Not necessarily. Consumers shouldn’t choose a rewards program based solely on which one offers the highest potential return. Instead, they should choose the program that provides the most value based on their lifestyle, spending habits, and financial goals.
While travel rewards can sometimes deliver a higher dollar value per point, that value only matters if you travel frequently and can easily redeem those rewards. For someone who rarely travels, a cashback or points-based program that can be used on everyday expenses may provide far more practical value.
The best rewards program is one that you’ll actually use. If you travel often, a travel rewards card may be a great fit. If you prefer flexibility and cashback, a program like PC Optimum may make more sense, since points can be redeemed on things like groceries, household essentials, gas, mobile plans, and even toward your PC Mastercard balance.
At the end of the day, the goal isn’t to chase the highest reward rate but to choose a program that helps you get the most value from the purchases you were going to make anyway.
Q: What practical, everyday strategies can Canadians adopt immediately to better optimize the rewards programs they’re already enrolled in?
The best way to optimize the rewards programs you’re already enrolled in is to be more intentional about how you use them.
Start by reviewing where you spend the majority of your money and make sure you’re using the rewards program or credit card that gives you the most value in those categories. Before making larger purchases, take a moment to check for bonus points offers, partner promotions, or redemption offers that may be available.
It’s also a good idea to regularly open your rewards app and activate any personalized offers. For example, the PC Optimum app provides personalized offers based on your shopping habits, making it easy to earn additional points on products you frequently purchase.
Finally, give yourself a goal for your points. Whether you’re saving for holiday shopping, an item on your wishlist, or simply looking to reduce your grocery bill, having a redemption target helps ensure your points don’t sit unused and allows you to get the most value from the rewards you’re already earning.
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