SPC Card and Conversion are proud to announce the release of the second annual “Pulse of the Canadian Student Shopper” study. With 1 million+ cardholders aged 14-24 per year, SPC Card - Canada’s leading student loyalty program, enjoys robust and privileged access to young Canadian shoppers. The second annual survey was fielded in September, 2012 and has derived a robust sample size of 1440 young Canadian shoppers aged 14-24. The study provides unprecedented access to, and of-the-moment perspective on, the volatile, influential and lucrative student consumer market in Canada. To match the evolving focus points of the industry writ large a major focus of this year’s study has been on the shifting expectations young Canadian shoppers have of loyalty programs.

1. Research &
Strategic Insight
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
LOYALTY
LANDSCAPE
UPDATE

2. Greetings and welcome to our first white paper of the 2013
season. We at SPC Card, in conjunction with our research
partners at Conversion, are pleased to share our findings and
thoughts with our coalition partners and the industry as a whole.
As North America’s dominant student loyalty program, SPC Card
has unprecedented and unique access to the now and the near
future of youth shopping behaviour through our 1.1 million
student shoppers in Canada and America – and we like to share
what we learn.
We would like to thank our media partners and The Retail
Council of Canada for taking interest in our research and
distributing it. We look forward to working with these partners
and others now and in the future as we help chart the course
of marketing and retailing in North America and beyond.
Dean Mazzariol
President, SPC Card
INTRODUCTION
Research &
Strategic Insight 01
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013

3. THE NOW & NEAR FUTURE OF LOYALTY IN CANADA
Research &
Strategic Insight 02
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
The tides are most definitely changing in the consumer landscape.
Our 2012 Pulse of the Canadian Student Shopper study attested
to this, and it’s largely due to the continuing definition of a new,
digitally-driven retail consumer ecosystem. Social media and
social CRM continue to emerge as pivotal elements of any and
all marketing communication programs. The ongoing economic
uncertainty paired with a proliferation of online discount buying
platforms means consumers expect discounts everywhere.
Meanwhile, the loyalty space continues to become more saturated
than ever in Canada with a wide variety of new entrants to the
market (Scene and Plum most prominently, but many more private
retailer programs continue to pop up) and new “loyalty light”
programs being introduced in categories that never touched
loyalty before. Virgin Mobile is a prominent Canadian example
now, with its Member Benefits strategy.
There is also an undeniable change in expectations of Millennials
to take into account when it comes to the loyalty space. Soft
benefits are an increasingly influential element of any loyalty
program, as is recognition for new and trackable forms of
advocacy. We have also discovered that the loyalty game of
collecting points (tokens, dollars, etc.) is certainly not dead
with Millennials, however; instant gratification of varying kinds
also plays a key role, particularly as an introductory mechanism
and part of an ongoing surprise and delight strategy.
So where do things stand right now and, more importantly,
where are they going when it comes to the still abundantly
fertile loyalty landscape here in Canada? Let’s take a look at
some hot-off-the-presses results, freshly culled from this year’s
SPC Card / Conversion “Pulse of the Canadian Student
Shopper” study, fielded in August / September 2012 to the
SPC Card registered members database and generating a
regionally diverse sample size of 1440.

4. THE NOW: WHO IS USING WHAT CARDS & HOW?
Research &
Strategic Insight 03
The immediate takeaway from our second annual Pulse of
the Canadian Student Shopper study has to be that loyalty
programs are alive and well; 79% of our student shopper study
base was enrolled in at least one private loyalty program,
while a similar number (70%) were registered in a group or
“coalition” loyalty program on top of a membership to SPC
Card. Loyalty programs are most definitely an established and
ingrained part of the modern shopper’s expected landscape of
options and something that is not going away any time soon.
Aggregate analysis also indicates that there is not as much
of a gender distinction as previously marked in the loyalty
landscape when it comes to who is actually driving loyalty
program membership. Yes, females DO drive private loyalty
program behaviour by a significant factor of 17%, but close
to three-quarters (71%) of male student shoppers now play
an active and formal role in the Canadian private loyalty
landscape, versus the 88% of females that play a role.
Importantly, these gender percentages come even closer
when looking at group coalition membership results.
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
Canadian Student Shoppers & Store Loyalty Programs –
Where They Collect Points
(n=1440)
“I usually collect reward points using:”
MALE FEMALE 14-17 18-24
Regular
Loyalty
Card
Credit
Card
Debit
Card
Mobile
Phone
Video
Game
Console
Prepaid
Card
0 10 20 30 40 50 60 70 80%
63%
74%
27%
23%
7%
21%
17%
18%
8%
3%
6%
5%
7%
1%
5%
3%
4%
2%
3%
2%
19%
41%
74%
63%

5. Research &
Strategic Insight 04
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
THE NOW: WHO IS USING WHAT CARDS & HOW?
Canadian Student Shoppers and Store Loyalty Programs - Membership (Top 10)
(n=1440, SPC Card Members)
MALE FEMALE 14-17 18-24
MEMBER OF AT
LEAST ONE STORE
LOYALTY PROGRAM
AMERICAN EAGLE
ACCESS CARD
INDIGO PLUM
REWARDS
BEST BUY
REWARD ZONE
COSTCO
MEMBERSHIP
CARD
MY STARBUCKS
REWARDS
SEPHORA VIB
BEAUTY INSIDER
LA SENZA
PRESTIGE VIP
BLUENOTES
SIGNATURE CARD
SHOPPERS'S
OPTIMUM CARD
71%
88%
28%
18% 18%18%
30%
17%
20%21%
13%
1%1%
28%
23%
8%
11%
43%
39%
45%
0
20
40
60
80
100%
PETRO POINTS
10%11%

6. 05
Early adoption is also something to consider in our
assessment; 76% of those aged 14-17 in our study were
enrolled in at least one private loyalty program. Further,
usage in the past month (earned, collected, redeemed,
received a perk) is nearly ubiquitous across our study base,
with 90% of student shoppers indicating usage of at least
one loyalty program (group or private) in the past 30 days.
Loyalty membership is an ingrained and frequently used
behaviour that starts early.
* No Annual Fee
** Annual Fee
+ Source: SPC Card Market Share Study 2012
Canadian Student Shoppers & Group Loyalty Programs - Membership
(n=1440, SPC Card Members)
MALE FEMALE 14-17 18-24
SCENE CARD* AIR MILES* SPC CARD**+ AEROPLAN* HBC REWARDS*
0
10
20
30
40
50%
21%
16%
13%
39%
33%
14%
16%
11% 11%
35%
26%
17%
16%
45%
24%
20%
17%
48%
50%
34%
Research &
Strategic Insight
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
THE NOW: WHO IS USING WHAT CARDS & HOW?

7. Research &
Strategic Insight 06
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
Canadian Student Shoppers and Store Loyalty Programs – Last Month Usage (Top 10)
(n=membership established in study per program)
“Of these loyalty programs, which of them have you used (earned, redeemed, received any benefit or perk from) in the last month?”
MALE FEMALE 14-17 18-24
SPC CARDAIR MILES MY STARBUCKS
REWARDS
COSTCO
MEMBERSHIP
CARD
AEROPLAN PETRO POINTS SHOPPER'S
OPTIMUM CARD
SCENE CARD SEPHORA VIB
BEAUTY INSIDER
AMERICAN EAGLE
ACCESS CARD
0
10
20
30
40
50
60
70%
61%
63%
54% 53%52%
49%49% 48%
46%
50%
44% 45%
48%
42%
49%
52%
46%
44%
45%
56%
THE NOW: WHO IS USING WHAT CARDS & HOW?

8. 07
Taking a look at the collection versus redemption equation
that drives the loyalty machine, our annual study shows that
the game is still on with half of our student shoppers
perceiving themselves as at least “frequent collectors of
points.” Another 30% indicate they collect points “all the
time” (13%) or, at the top level, collect points“all the time
and look for ways to double up points, etc.” (17%). And
despite all the hoopla about new modes for payment and
collection, just under 7 in 10 (69%) student shoppers still
collect using their various standard loyalty cards with credit
cards (25%) and debit cards (19%), pulling up the rear as the
second and third most used collection vehicles respectively.
Mobile phone collection (5%), video game consoles (4%)
and prepaid cards (3%) round out the collection vehicles.
Canadian Student Shoppers & Store Loyalty Programs – Collecting Points
(n=1440)
“Thinking about programs that allow you to collect points, which best describes you?”
MALE FEMALE 14-17 18-24
I never collect points
0 10 20 30 40 50 60%
I collect points
once in a while
26%
29%
28%
27%
I collect points when
I am reminded
19%
16%
20%
15%
7%
9%
3%
5%
I collect points all the
time & look for ways to
double up points etc.
I collect points
all the time
12%
13%
10%
15%
I am a frequent
collector of points
19%
20%
16%
23%
16%
16%
17%
17%
Collect Frequently
[Top 3 Box]
49%
50%
44%
55%
Research &
Strategic Insight
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
THE NOW: WHO IS USING WHAT CARDS & HOW?

9. 08Research &
Strategic Insight
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
Canadian Student Shoppers & Store Loyalty Programs –
Redeeming Points
(n=1440)
“Think about how you redeem those points, which best describes you?”
MALE FEMALE 14-17 18-24
33%
34%
35%
37%
36%
35%
37%
21%
20%
8%
8%
10%
10%
21%
22%
33%
I hardly
ever
redeem
I save them
up for at
least a year
I save them
up for at
least six
months
I save them
up for a
month or so
0 5 10 15 20 25 30 35 40%
On the redemption side of the equation, we see results that one
can look at from a variety of perspectives. From the normalcy and
needs viewpoint, the fact that just over a third (34%) of student
shoppers describe themselves as “hardly ever” redeeming and
another third (36%) say they “save them up for at least a year”
should be of some good news to points and credit-based loyalty
programs where the house must always win; higher collection rates
and lower rates of redemption drive the loyalty machine.
Of course, there’s a flipside here that speaks to the potential of an
increasingly detached base of loyalty program members –particularly
within the context of a landscape that is getting more congested.
Creating a legion of zombies without a mission or a preference is
not the ideal approach.
We also don’t want a legion of members who are increasingly
cynical of the loyalty game; 60% of our student shopper base agrees
that, “The problem with most loyalty programs is that they aren't
very good at providing me with benefits or rewards quickly enough.”
Luckily, the changing media landscape is presenting opportunities
where engagement and advocacy can be driven, in part, without
only having to offer more costly redemption and discount benefits.
As per last year’s study, we have the developing digital marketing
and retailing ecosystem to thank for this.
THE NOW: WHO IS USING WHAT CARDS & HOW?

10. 09Research &
Strategic Insight
THE NEAR FUTURE: TRENDING EXPECTATIONS & ISSUES
It’s important to note here that nearly one-third (31%) of our
student shopper base states, “I don't find the communications
I get from loyalty programs to be very relevant.” Not bad, but
we can do better.
Important options to consider in order to become more
relevant, as highlighted in this study, include:
 Offering more frequent rewards at a lower value for
behaviour your modern shopper is increasingly
comfortable with.
 Nano-points, simple recognition and/or stored activity
accumulation for use later in a surprise-and-delight
context should be considered for desirable consumer
behaviour. This could include downloading apps to
their smartphones, checking in, advocacy, reviews and
provision of more specific personal information in
exchange for more relevant information and offers.
The loyalty game involves a fine balance between engagement
to drive allegiance, an increase in purchase volume, size and
frequency, and keeping redemption rates predictable and
manageable. Our study has identified a number of potential
vectors that the wise loyalty program should start to recognize,
consider and implement to suit the changing expectations of
the modern consumer.
Any loyalty program membership base should be recognized
as the marketing function’s most valuable asset. It’s your
addressable community of people who are “in.” It reduces
your reliance on paid media within a measurable, responsive
and highly scalable framework. It’s also a key recommendation
and advocacy engine and, in the hands of a modern brand
publisher, a brand enhancer of potentially epic proportions.
Our goal, and ideally your goal, should be to make loyalty
membership databases an asset on any organization’s books.
With this assertion, let’s take a look at some ways the modern
brand publishers can up their game within the loyalty space.
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013

11. THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
THE NEAR FUTURE: TRENDING EXPECTATIONS & ISSUES
NEW PRIORITIES
I would consider volunteering time
to a cause or charity in exchange
for points, rewards or discounts
I am interested in using my phone
rather than a card to collect points
and receive discounts
I wish loyalty programs offered
more of an experience rather
than just discounts
I would consider converting
points or rewards into ballots for
daily contests to win trips, tickets
and merchandise
I would consider providing
personal preferences to a loyalty
or rewards program in exchange
for more targeted and relevant
advertising and offers
I would consider driving my friends
to shop in a given time period at a
given store in exchange for points,
rewards or discount
I would consider converting points
or rewards into credits to pay
down obligations like a monthly
cell phone plan or a student loan
I like the idea of pooling points
or rewards with friends and family
as a route to bigger rewards,
steeper discounts, etc
Loyalty programs for people my
age need to involve social media
connections and community
I would be likely to download a
loyalty app to my smartphone
I would consider contributing
reviews or comments online
in exchange for points, rewards
or discounts
I would consider checking in at
various participating retailers
in exchange for points, rewards
or discounts
64%
62 %
55%
36%
44% 33%
41%59% 41%
34%
33%
45%
Research &
Strategic Insight 10

12. STATUS QUO
THE NEAR FUTURE: TRENDING EXPECTATIONS & ISSUES
 64% of our study base would consider contributing
reviews or comments online in exchange for points,
rewards or discounts.
 A majority (55%) would also consider checking in at
various participating retailers in exchange for points,
rewards or discounts.
 Utilizing the access and efficiency of modern, skillfully
managed membership databases to give your members
more dexterity with their points.
 62% of our study base expressed interest in converting
points or rewards into credits to pay down obligations
like a monthly cell phone plan or student loan.
 59% like the idea of pooling points or rewards with
friends and family as a route to bigger rewards, steeper
discounts etc.
 41% consider volunteering time to a cause or charity
in exchange for points, rewards or discounts.
69%
I prefer getting
instant discounts
versus collecting
points
63%
I am pretty much
always interested
in new loyalty
programs so I
can save money
59%
Emails are the
best way for a
loyalty program
to communicate
with me
39%
When a retailer
offers a loyalty
program I know
they want to offer
me the best deals
11
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
Research &
Strategic Insight

13. THE NEAR FUTURE: TRENDING EXPECTATIONS & ISSUES
 Make yourself consistently available where your
membership wants you to be.
 Just under half (45%) believe that, “Programs for people
my age need to involve social media connections and
community.”
 44% would be likely to download a loyalty app to their
smartphone (a figure destined to increase as rewards and
recognition get offered to members for doing so).
 Over a third (36%) are interested in using their phone
rather than a card to collect points and receive discounts.
Universal smartphone adoption could be the tipping
point in the future.
 59% of our study base indicates that email
is still the best way for loyalty programs to send
communications.
 Think about experiential events and benefits that both
enhance your overall brand relevance while also utilizing
the omnipresent efficiencies of the digital world.
 Indeed, one-third of our study base wishes loyalty
programs offered more of an experience rather than
just discounts.
60%
The problem with most
loyalty programs is that
they aren't very good at
providing me with
benefits or rewards
quick enough
I don't find the
communications I get
from loyalty programs
to be very relevant
I am unclear about the
value of reward points and
often find them confusing
31%
NEEDS IMPROVEMENT
31%
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
12Research &
Strategic Insight

14. Research &
Strategic Insight
About The Study
SPC Card and Conversion are proud partners in the annual “Pulse of the
Canadian Student Shopper” study.
With 1 million+ cardholders aged 12-24, SPC Card, Canada’s leading student
loyalty program, enjoys robust and privileged access to young Canadian
shoppers.
Conversion Research, the full service insight practice helmed by
award-winning market research expert Mike Farrell, provides undeniable
longitudinal experience and objective discipline.
This study was fielded online in September 2012 to a fielding universe of SPC
Card members and derived a national total aggregate sample size of 1,440
Canadian students aged 14-24 – weighted to most recent StatsCan regional
and demographic information where applicable.
Full sets of detailed tables are available upon request. Customized detailed
tables (i.e. cut by stores shopped or custom demographics) are available for a
very reasonable fee.
Project Lead and Author
Mike Farrell
SVP, Research and Strategic Insight
Conversion Marketing &
Communication
Data Lead
Caroline Wilson
Vireo Research
Design
Diana Shim
Interested in knowing more about SPC Card?
Please contact:
Nicholas Bianchi
Vice President, Sales & Loyalty Marketing
nicholas@spccard.ca
toll free – 877.798.4637 ext. 241
Interested in knowing more about Conversion, this project and custom
research opportunities?
Please contact:
Mike Farrell
SVP, Research and Strategic Insight
Conversion Marketing & Communication
mike.farrell@driveconversion.com
416.938.0673
Please direct all media inquiries to Mike Farrell.
THE PULSE OF THE CANADIAN STUDENT SHOPPER 2013
13