Vouchers and points common currency for cash conscious Brits

The nation’s increasing appetite for discounts and cost savings saw a dramatic uplift in the number of John Lewis & Waitrose partnership card reward vouchers issued in 2008 – a record increase of 17%.

The John Lewis & Waitrose partnership card, which offers reward points and vouchers on customer spend (one point for every £1 spent in the John Lewis Partnership which ranges from fashion and food, to holidays and car insurance and one point for every £2 spent outside JLP), awarded cardholders £23.3 million in reward vouchers last year – significantly up on the £19.8 million issued in 2007.

Far from being forgotten, 95% of the reward vouchers issued have been redeemed in-store (52% at John Lewis, 43% at Waitrose) and 5% online.

Analysis among John Lewis & Waitrose partnership card cardholders reveals it’s the lure of rewards driving them to view the card as their key payment tool. Research among nearly 2,000 cardholders showed 60% took out a John Lewis & Waitrose partnership card as a result of the rewards it offers on customer spend, with nearly three quarters (70%) saying they use it at least once a week. Sixty per cent use the partnership card as their primary credit card.

John Lewis & Waitrose Director of Card Services, James Furse, said while in the past there has been a small segment of the market reluctant to make use of discount vouchers, they have now become an accepted and valued currency for countless shoppers.

“The fact that such a high number of the vouchers awarded to partnership card cardholders have been redeemed shows that partnership card is offering a service that’s highly relevant to customers, particularly in the current environment,” Furse said.

“The high redemption rate of the reward vouchers in 2008 highlights the extent to which consumers are now committed to making the most of discounts and reward schemes to help ease their financial burden.”

He said that taking advantage of discount vouchers, rewards, and price cuts has become very much mainstream and the nation is understandably looking for everyday opportunities to make their pound go that little bit further.

“As a responsible lender we would encourage people to avoid over-stretching themselves when borrowing, but as a revolving credit facility it is clear that customers see clear benefits in using the John Lewis & Waitrose partnership card over other cards available in the market.”