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Experian Takes Stake in Customer Engagement Firm Reward

Experian Claims Stake in Customer Engagement Firm Reward

Experian acquired a stake in Reward, which powers bank and retail rewards programs.

“The investment cements an existing commercial partnership between Reward and Experian,” the companies said in a news release Wednesday (May 22). “This further collaboration will focus on leveraging Experian’s rich data and audience activation capabilities to fuel Reward’s offerings across banks and retail, expanding reach to create a more rewarding experience for consumers.”

The partnership focuses on new ways to enhance Reward’s customer engagement programs, employing Experian’s data and audience activation capabilities to fuel Reward products and services to banks and retailers, according to the release.

The companies will try to scale solutions across international markets, creating better shopping experiences for customers based on a new understanding of consumers’ needs and preferences, the release said.

“Experian’s investment in Reward is a powerful endorsement of our vision and international growth strategy,” said Reward CEO Jamie Samaha in the release. “With a goal to give back $2 billion to customers by 2025, we are excited to leverage Experian’s global footprint and capabilities to enhance our service offering to our bank and retail partners.”

PYMNTS Intelligence found that 90% of consumers said they are interested in earning rewards in exchange for card activity. However, the type of reward depends on the age of the consumer.

Fifty-four percent of baby boomers and seniors prefer cash-back rewards on their purchases while 37% are content to get cash rebates on qualifying purchases. However, 24% of Generation Z consumers would welcome subscriptions or memberships in exchange for card purchases.

Flash sales also appeal to 16% of Gen Z consumers, which is higher than the 5.4% of older generations who show interest in those sales. By the same token, roughly 12% of Gen Z shoppers would appreciate ticket access and referral programs while baby boomers and seniors expressed little interest in those types of rewards.

Additional PYMNTS Intelligence research found that rewards programs from merchants such as grocers are popular, especially if they’re personalized.

“When shoppers receive offers tailored to their preferences, they feel understood and valued by the retailer,” PYMNTS wrote last month. “This personalized experience enhances customer satisfaction and fosters loyalty, as shoppers are more likely to return to a retailer that offers relevant deals.”