More than ever, retailers are redoubling their efforts to offer rewards programs that stand out. And it’s no small feat. While each Canadian subscribes to an average of 13.5 loyalty programs, the majority of members make very little use of the offers and services available under these plans.
Overview: Quebecers and rewards programs
Source: Vividata, spring surveys, 2023 and 2020, 14+, Quebec and other provinces
Moving towards market consolidation
In an increasingly competitive environment, the major complementary banners are grouping together and focusing on their synergies within the most comprehensive programs possible. Moreover, loyalty programs that link several businesses (Triangle, PC Optimum) are those that generate the best membership rates.
The customer loyalty movement in full swing in Quebec
Sources: Metro inc. and Empire (Sobeys’ parent company) corporate sites/Radio-Canada, BMO rachète le programme de fidélité Air Miles, March 2023
First-party data: the crux of the war
Today, 9 out of 10 companies offer (in one form or another) a rewards program. And according to experts, 1 in 3 merchants who do not yet have a loyalty program will launch one by 2027. Behind these initiatives lies one of the great challenges of our times: the collection of so-called first-party data. And the deal is being welcomed by consumers . . . subject to certain conditions. The majority of Canadians agree to share their data, in exchange for discounts of at least 10%.
Shifting acquisition efforts towards retention and loyalty
Source: Adviso, Pourquoi les programmes de fidélisation sont-ils de plus en plus pertinents et rentables?, April 2023
Engagement: the Holy Grail of loyalty programs
Not surprisingly, the efficiency and profitability of loyalty programs are directly related to their actual use by registered members.
Consumers demand generosity and personalization
Source: LoyauT survey, Un point tournant pour les programmes de fidélisation, November 2021
Additional sources: Agri-Food Analytics Lab, Faculty of Agriculture at Dalhousie University, A new report suggests Canadians are willing to share personal data but expect significant discounts when purchasing food, June 2022 / Les Affaires, Inflation: les consommateurs se tournent vers les programmes de fidélisation, July 2022