Canadian Retailer - Spring 2016 - 27

CUSTOMER loyalty programs are important to Canadian
us to talk to customers one-on-one. We're here
consumers, who consider them of value and credit them with to serve customer needs and to offer them an
influencing their shopping behavior. Canadian retailers are experience, and we can do that better by hearat the forefront of the customer loyalty program curve, which ing directly from the customer. This allows us
is perhaps reflected in the fact that Canadians are more ac- to do more personalized marketing, to make
tive in participating in such programs than consumers in sure what we carry or what we show in the
any other country, save Great Britain.
flyer is relevant to specific customers, and to
"Loyalty programs started here in Canada," asserts Shawn send targeted newsletters."
Stewart, VP loyalty at Canadian Tire. "Our
Canadian Tire Money, launched in 1958, is "We know that in the 21st century we have
perhaps the earliest customer loyalty pro- to enrich the shopping experience for our
gram. Other Canadian loyalty plans, such as
Aeroplan and Optimum by Shopper's Drug customers, so we asked ourselves what else we
Mart, set the standards early. Canadian loyal- could bring in terms of experience and privileges.
ty programs are the strongest in the world, The program is one way because it allows us to
and they need to be because Canadians are
talk to customers one-on-one. We're here to
value-conscious and have unique values."
Incredibly, in a recent survey conducted serve customer needs, and we can do that better
by Bond Brand Loyalty, customer loyalty pro- by hearing directly from the customer. This
grams were found to be a top contributor to allows us to do more personalized marketing,
brand loyalty, ranking higher than factors such
to make sure what we carry or what we show in
as product and service availability, overall
price, promotions, and communications. The the flyer is relevant to specific customers, and
evidence is clear: retailers must successfully to send targeted newsletters."
engage their customers with a meaningful and
- SHAWN STEWART, Canadian Tire
relevant loyalty program.
"Nearly one-third of consumers agree they would not be
Tailored communications is just the sort of
loyal to the brand if it were not for a loyalty program, and 70 thing customers are coming to expect from
per cent of consumers say they modify when and where they their loyalty reward programs. Sadly, many
shop to maximize points, a significant increase over the past retailers aren't doing enough of it. Research
few years," says Scott Robinson, VP of design and strategy at shows that only 23 per cent of Canadians surBond Brand Loyalty. Robinson has a unique insight into the veyed felt communications from loyalty proworld of loyalty programs: every year for the past six years, grams were relevant to them. Retailers should
Bond Brand Loyalty has put out the Loyalty Report, which be using consumer data to demonstrate that
reveals insights on loyalty initiatives garnered from surveys they are actually listening to their customers
encompassing more than 6,000 consumers (available for by matching their outgoing communications
download at www.bondbrandloyalty.com).
to what the customer is actually purchasing.
One retailer doing just that is Shoppers
A program for everyone
Drug Mart, ranked by customers as having
Loyalty programs come in a variety of shapes and sizes, one of the best loyalty programs in Canada.
but at their core all are about reaching customers with a new
"Our Optimum rewards program, which
form of communication and delivering relevant value prop- celebrated its 15th year in 2015, is a core part
ositions to consumers.
of Shopper's DNA. We're always working
"Customer loyalty programs allow retailers to develop strat- hard to provide great value to members by
egies through personalized communications. We can reach helping them earn points faster, which can
customers in ways we never could in the past," explains Stew- be redeemed for free goods. This really resart, noting that Canadian Tire launched its digital initiative in onates with our customers and creates exNovember 2014 when it offered card and mobile app options citement about our brand," explains David
for customers. "We know that in the 21st century we have Harrington, VP business analytics and Optito enrich the shopping experience for our customers, so we mum at Shoppers Drug Mart. "To celebrate
asked ourselves what else we could bring in terms of experi- our 15th year we doubled down on the oneence and privileges. The program is one way because it allows on-one connection with My Optimum, My

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SPRING 2016 | CANADIAN RETAILER

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Table of Contents for the Digital Edition of Canadian Retailer - Spring 2016