adviso and R3 Marketing, in collaboration with Ad hoc Research, has released its 7th edition of the LoyalT study. By sampling 10,000 Canadian respondents and applying a unique methodology, LoyalT is the most complete Canadian study on loyalty program performance, said officials in a news release.
List of the 10 best loyalty programs in Canada
Achieving the top spot on the LoyalT list for the first time, PC Optimum has strengthened its reputation as a leader in relationship marketing and loyalty, said the report.
“The new private coalition program Moi, by Metro, launched in 2023, has ascended to third place. Bringing together the Brunet, Première Moisson, Jean Coutu, and Super C brands, Moi replaces the metro&moi program, which was a favourite in our rankings in past years. While Sephora’s Beauty Insider has made its first reappearance on the list since 2018, Pet’s Rewards (Global Pet Foods), Nike Membership, and Air Miles have all made their very first appearance.
“Air Miles has experienced a significant upswing since its acquisition by BMO. The program’s performance has improved, in part attributed to the change in its business model and its co-branded card-linked offers, which generate even more engagement. Despite its position in fifth place, the Air Miles’s program seems to have stalled in Quebec since the withdrawal of a number of major retailers, such as RONA, Jean Coutu, and IGA. It has received an average LoyalT score of 88 in Quebec, while it has achieved a score of 111 in the rest of Canada. Over 20 per cent of Quebecers stated that they had subscribed to the program in the past 12 months.”
The report said absent from the list of top performers, given its ranking of 25th place, the new coalition program Scène+ (Banque Scotia and Cineplex) shows lukewarm performance. While it registered the strongest growth in 2024 in terms of members—numbering over 10 million—the program has not been able to create a bond with its membership nor influence their purchase behaviours and visit frequency, added the report.
“Mobile experience today is an essential element that contributes to the performance of a loyalty program,” said Hans Laroche, Senior Consultant in Loyalty at adviso/R3 Marketing.
Some key findings from the report:
- Inflation has affected members’ consumption habits. Almost one in three Canadians (32 per cent) have changed their choice of products to maximize loyalty point accumulation, as opposed to 27 per cent in 2023 and 23 per cent in 2021;
- For the first time, the Amazon Prime subscription rate has exceeded that of Costco: 54 per cent of Canadians are members, compared to 51 per cent for Costco;
- Young people (18–35) still represent the segment with the most membership. The 2024 study also shows that they are more active and more satisfied both in terms of the overall program and promotional offers;
- Participation in gamification activities has increased amongst the 18-to-54 age group. This increase is especially notable amongst those 18–35, of which 33 per cent frequently participate in games, challenges, surveys, and contests, representing an increase of seven percentage points;
- More Canadians are opting for a digital loyalty card 42 per cent state they prefer this modality, a leap of 10 percentage points compared to the previous year;
- 55 per cent of Canadians frequently use loyalty programs that have superior mobile applications, as opposed to 41 per cent for programs whose experience leaves something to be desired.
- In 2024, Canadians belonged to an average of 19 programs, which is five more than in 2023—a number that represents the highest level observed in seven years of LoyalT studies. However, only seven programs are used regularly, an identical figure to last year and barely higher than that observed in 2021. The rate of programs used on a regular basis has decreased from 50 per cent to 36 per cent, indicating that Canadians are becoming increasingly selective about which programs they choose to use consistently;
- One in three members stated they had visited retailers more often (32 per cent) and were concentrating more of their purchases (36 per cent). These two statistics have increased by four percentage points since 2023.
“We are frequently asked whether there is a decline in loyalty. The answer is no; the numbers above are very high and demonstrate the effectiveness of these programs, which is also confirmed by our profitability analyses of numerous programs. The programs that succeed in increasing visit frequency and purchase concentration show a very high ROI”, said Jonathan Pollender, Business Strategy Consultant at adviso.
“This study goes far beyond simply ranking programs. It’s teeming with valuable insights on the needs and perceptions of Canadian consumers in terms of their relationships with and attachment to brands. It highlights the best practices for generating engagement and building real, sustainable relationships. At adviso, we strongly believe that relationships are foundational to the future of marketing,” said Elizabeth Henry, CEO and Partner at adviso.
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Great insights! I found it interesting how loyalty programs are adapting to new consumer behaviors. The trend towards personalized rewards is especially appealing. Looking forward to seeing how these programs evolve in the future!