Here is the 2018 summary report for LoyalT, the most complete study on loyalty program performance in Canada. You will discover - The methodology - The possession and usage rate for loyalty programs in Canada - The importance of personalized offers - Mobile App usage - The impact of a program on purchase frequency and concentration - Millenials and how they use loyalty programs - Top 10 programs in Canada A personalized report for every program analyzed is also available. Please contact us at info@r3marketing.ca for more details.

1. Presented by and and sponsored by
1

2. © 2018 DataCandy Software, Inc. All Rights Reserved.
Loyalty and gift card
solutions for real and
relevant results
700
brands
Datacandy.com
3 400,000
members
10,000
locations
Used by over

3. © 2018 DataCandy Software, Inc. All Rights Reserved.
Loyalty and
DataCandy
Platform

4. © 2018 DataCandy Software, Inc. All Rights Reserved.
Campaign
Management
Point
s
Discoun
ts
Punch
Card
RFM
Segmentation
& Targeting Social Media
Fulfillment
In-stor
e
Reporting &
Analytics
Promo
Cards
E-gift
Corporate
Orders
Card
Store
Promotions
Online Gift
SMS Gamification
EXTENSIONS
Automated
Clearing House
Member
Portal
Wallets Bank
Terminal POS
Mobile
AppAPI
Online
ordering

5. © 2018 DataCandy Software, Inc. All Rights Reserved.
v
Customer comments
“Clients note that the solution is
customer friendly and easy to use, and
that the vendor is responsive, helpful,
and provides good customer service and
value.”
Loyalty Report, 2016
Forrester
DataCandy have an excellent
reputation and impressed us with their
gift card platform. They have proven
to be responsive to our needs and
mirrors our business culture in terms of
serving customers with the best
possible products and services. The
DataCandy Gift Card platform is
another step toward achieving an
unparalleled shopping experience for
ALDO customers around the globe.”
Pascal Hebert
IT Manager – Global Store Operations
The Aldo Group
“The DataCandy team, for
development as much as for support,
is composed of dynamic, dedicated
and competent people. Requests are
handled quickly, our needs are
understood and considered and the
work is always done in collaboration
with all parties involved. The
relationship with them goes beyond
partnership. Working with DataCandy
is real candy!”
Véronique Painchaud
Marketing and Loyalty Specialist
Familiprix

6. 6

7. 7
New program
development
Existing
program
optimization
Training Best practice
analysis (BP-I)
Our products and services

8. 8
Our clients

9. Why
?
9

10. Why ?
➔ There is no extensive study of loyalty programs for the
Quebec and Canadian market
➔ There are no benchmarks available for loyalty program
managers
➔ The only existing data measures members’ satisfaction or
engagement
However, the best measure of performance for a loyalty
program is its capacity to modify purchase behaviour of
members.
10
1
2
3

11. A unique
methodology
11

12. Methodology
▪ Weighting according to the real distribution of the population, according to the sex, age,
regions, education, presence of children and mother tongue
▪ Margin of error is +/- 1.4 %, confidence interval of 95% (in 19 cases out of 20)
Canadians over 18
years old 5,000 respondents
(3,000 in Québec)
Data Collection
from April 24 to May 11
2018
12
(Internet panel of over 400,000
respondents across Canada)

13. +
Engagement Behaviour
+
Recommendation
3 Key performance indicators
13

14. The LoyalT score is calculated using a multiple regression analysis to determine
the contribution of each key performance indicator to the final score.
RECOMMENDATION
1
ENGAGEMENT
2
BEHAVIOUR
3
Interest in recommending the
program to friends and family
Social media subscription, newsletter
and other communications consultation
rate by members and points redemption
in the last 12 months
Capacity of the program to make
members more loyal and to modify
purchase behaviour (frequency and
concentration of purchases)
LoyalT
Score
14
6 %
37%
57%
Key performance indicators and measures

15. Provigo/Loblaw/M
axi
Metro
IGA
Longo’s
Familiprix
Jean Coutu
Pharmaprix/
Shoppers
Rexall
Lawton’s
Pharmasave
Shell
EKO
Petro-Canada
Esso
Irving
Husky
BMR
RONA
Lowe’s
Canadian
Tire
Cineplex
Chapters Indigo
DeSerres
Brands and programs studied
(9 activity sector)
15

16. Simons
La Baie
Addition Elle
Penningtons
Sephora
Dynamite/Garage
The Body Shop
La Senza
Air Canada
West Jet
Porter
Via Rail
Starbucks
David’s Tea
SAQ
Club Cage
Mondou
PetSmart
Coalition Programs
Air Miles
CAA
Aeroplan
16
Brands and programs studied
(9 activity sector)

17. Variables analyzed for each program
17

18. The personalized
LoyalT report
18

19. The personalized LoyalT report
19
Recommendations : main takeaways, elements to
improve, recommended strategies, etc...
The performance of your program on
15 variables
Your LoyalT score and the performance of your
program on the 3 key performance indicators
Your results compared to other programs in
your activity sector and to the top 10 programs in Canada
1
2
3
4
$9,500

20. The personalized LoyalT report
20

21. Trends and
results
21

22. Ownership and usage
22

23. Loyalty program usage is growing
Number of programs owned, used or rarely/never used by person
23
8.9
5.9
3.0
9.8
6.6
3.2

24. Women use more loyalty programs than men
24
6,6
7.0
6.2

25. People with higher revenues use more loyalty programs
25
6,6
5.3
6.4
6.6
7.9
8.0

26. Usage rate remains high
The 5 programs that are the most used in 2018 (always or most of the time)
26
Author’s note
➔ Usage rate remains high even though Canadians have more programs than before
➔ Brands with higher frequency of purchase obtain better results
➔ The rate shown for PC Optimum is the average of both programs (PC Plus and Optimum)

27. Components of a loyalty program
27

28. Importance of personalized offers
28
43%
Author’s note
➔ The best programs are those using personalization and data analysis. Customers are expecting the
right offers at the right time.

29. 5 Programs with the best personalized offers
29
Author’s Note
➔ SAQ stands out as this program has over 24 months of customer data history which permits to
better personalize offers.

30. Mobile app usage is growing
30
16%
% of respondents that always or most of the time use the mobile app

31. The 5 best programs for mobility
31
Author’s note
➔ Starbucks is first because the program integrates mobile payment, mobile orders and other
mobile friendly elements.

32. Co-Branded Credit Cards
32

33. Adding a co-branded credit card improves a
program’s performance
LoyalT scores are significantly higher for co-branded credit card owner.
PC Plus de Loblaws/Provigo/Maxi Program
Members holding the co-branded credit card
have a better perception of the program than
members who do not have the credit card.
33

34. Adding a co-branded credit card improves PC
Plus’ performance
34
(% of respondents attributing a score of 9 or 10)
Author’s note
➔ This trend is also validated with other programs offering co-branded credit cards like Petro-Points,
Husky Rewards and Canadian Tire.

35. Reward exchange and generosity
35

36. 41%
Rewards redemption rate increases slightly
36
% of respondents redeeming their rewards in the last 12 months
Author’s note
➔ Coalition program is the only category that decreased from 2017 to 2018.
➔ Several programs develop initiatives that are encouraging members to redeem.
➔ A member’s engagement rate for a program increases when redeeming.

37. 5 programs with the best redemption rate
37
Author’s notes
➔ Initiatives encouraging points redemption like vouchers (métro&moi) or contests (SAQ),
mobility and frequency of visits are elements increasing redemption rate.

38. Perceived generosity according to program type
38
43%

39. The 5 programs with the best perceived generosity
39

40. Changes in purchase behaviour
40

41. The best programs increase purchase frequency
% of respondents that agree (score from 7 to 10) that the program makes them buy
from the company more often
42%
41

42. The 5 programs where members visit more often due to the
program
42

43. The best programs increase purchase concentration
% of respondents that agree (score from 7 to 10) that the program causes
an increase in the concentration of their purchases
43
46%

44. The 5 programs where members concentrate the most their
purchases
44

45. Impact on retention
% of respondents that agree (score from 7 to 10) that if the program did not exist,
they would shop there less often
45
36%

46. Millennials
46

47. Millenials are more selective in their programs’ choices
47
3.4 3.4 2.8
10.5
9.7
5.7
9.1
7.1
6.9

48. Millennials have a higher redemption rate than
any other age group
48
% of respondents redeeming during the last year

49. Canada’s Top 10
49

50. Canada’s Top 10
Starbucks
Rewards
Beauty Insider
(Sephora)
Milliplein
(EKO)
50
Author’s note
➔ Starbucks earns first place for a second
consecutive year.
➔ Milliplein changed it’s program this year
and results are almost instantaneous.
➔ Milliplein and Scene have the same LoyalT
score (66.0). However, Milliplein
performed better on the Behaviour key
performance indicator, which is the most
important KPI determining the loyalty
score. This gives the 3rd position to
Milliplein.

51. Canada’s Top 10
51
Program Points 2018 2017 Business
Starbucks Reward 71.6 1 1 Starbucks
Beauty Insider 67.2 2 ↑ 6 Sephora
Milliplein 66.0 3 ↑ 8 EKO
Scene 66.0 3 ↑ 4 Cineplex
PC Plus 65.6 5 ↓ 2 Loblaws
Petro-Points 65.2 6 ↓ 4 Petro-Canada
Câlin 64.8 7 ↓ 3 Mondou
metro&moi 61.6 8 8 Metro
Optimum 61.2 9 ↓ 8 Shoppers /
Pharmaprix
Frequent Steeper 60.0 10 ↓ 9 David’s Tea
Author’s note
➔ The best programs (Starbucks
Reward) has only 71,6 points on 100.
There is room for improvement even
for the best programs.
➔ In case of an equality, the program
with the highest score for the
Behaviour KPI earns the highest
ranking.
➔ PC Plus and Optimum were
evaluated separately because the
programs merged in February and
data for the study was collected in
April/May. It did not give enough
time for members to live the PC
Optimum experience. Next year, we
will evaluate PC Optimum as a
whole.

52. Winners for each key performance indicator
52
Top 3
Scene
Beauty Insider (Sephora)
Câlin
Top 3
metro&moi
Starbucks
Câlin
Top 3
Starbucks
Beauty Insider (Sephora)
Milliplein
EngagementRecommendation Behaviour

53. Growth champions
53
Author’s note
➔ The Simons and Inspire (SAQ) experience high growth a couple of years after their
launch.
Programs that had the highest LoyalT score growth from 2017 to 2018

54. The new PC Optimum program
54

55. PC Optimum : expected changes in purchase
behaviour (PC Plus and Optimum % of 7 to 10)
55
Author’s note
➔ The probability that PC Optimum members will shop more often in the pharmacies, supermarkets
of the group as well as the Esso gas stations are high.
➔ PC Optimum is a new private coalition program to follow closely during the next years because
they are well established Canadian brands where purchase frequency is high.

56. Coalition programs
56

57. Performance of coalition programs is decreasing
57
56,2
Author’s note
➔ The LoyalT scores of the three coalition programs are well under the average LoyalT score of all
combined programs (56.2).
49.6 47.6
44.4
50.8
50.8
45.2

58. The performance of coalition programs
% of members shopping at 0, 1 or 2 different retailers
58
Author’s note
➔ By definition, a coalition programs should make a member shop at many retailers. However, the
majority of members use the program at only 0, 1 or 2 different retailers.

59. Reminders...
59

60. ➔ Loyalty program ownership and usage is increasing;
➔ The best programs are those able to modify members’ purchase
behaviour by increasing frequency and share-of-wallet;
➔ Customer-data and personalization remain key to a better performing
program;
➔ Coalition programs remain at the bottom of the LoyalT ranking;
➔ Private coalition programs is a trend to track closely
◆ PC Optimum with Esso
◆ Triangle by Canadian Tire (L’Équipeur, Atmosphere, Men’s
Wearhouse and Sport Chek).
Reminders...

61. One last thing
61

62. To get a personalized report
62
Contact us at
info@r3marketing.ca

63. October 22nd from 9 AM to 5 PM
HEC Executive Education
Using relational marketing
to increase sales
R3 training (in French only)
63
October 24th 8h30 AM to 12 PM
St-James Club, Montreal
All you ever wanted to know
about loyalty programs
To register : ww.r3marketing.ca