59% of Consumers Say Rewards Make Them More Loyal to a Brand, New Research From PayPal and Reach3 Insights Finds
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CHICAGO, Sept. 8, 2025 ~ A new study conducted by Reach3 Insights, in partnership with PayPal, has revealed the significant impact that rewards have on consumer payment decisions. The research, which utilized Reach3's conversational and mobile-first approach, delved into the preferences and behaviors of consumers when it comes to rewards.

According to the study, rewards play a crucial role in shaping consumer loyalty and behavior. In fact, 81% of participants stated that rewards have a direct influence on their shopping and payment choices. This highlights the importance of understanding what truly matters to customers in order to drive meaningful loyalty.

"Rewards drive real behaviors, 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."

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The project utilized a combination of quantitative, qualitative, and video feedback through the Rival Technologies platform. Additionally, AI-enabled tools and an emotional elicitation exercise were used to capture deeper insights.

One key finding from the study was that cashback rewards are preferred over reward points by 68% of participants due to their simplicity and instant gratification. Furthermore, rewards not only drive behavior but also evoke positive emotions for consumers. 33% reported feeling satisfaction and joy when thinking about rewards.

Moreover, rewards have a significant impact on customer loyalty. 63% stated that rewards make them feel more valued as a customer and almost half (49%) are more likely to recommend a brand because of its rewards program.

The study also revealed generational differences in reward preferences. While older generations tend to prefer practical rewards tied to everyday purchases, younger consumers lean towards flexible, gamified experiences that align with digital wallets and social platforms.

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Leigh Admirand, Executive Vice President at Reach3 Insights commented on the importance of using modern research methods to understand consumer motivations. "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."

The findings of the study will be presented at the upcoming Insights Association's Corporate Researchers Conference (CRC) in Chicago. Titled "Motivated to Pay: How PayPal Used Conversational Research to Uncover What Consumers Want From Rewards at Checkout", the session will take place on Tuesday, September 9 at 4pm during the event.

For more information on Reach3 Insights and their research, interested individuals can visit their website or meet the team at Booth 208 during the conference. This study serves as a reminder of the importance of understanding consumer preferences and behaviors in order to create successful rewards programs that drive loyalty and satisfaction.
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