Report: Canadian Consumers’ Loyalty Preferences Changing, New Approaches Needed

A new report released today by Eagle Eye, a leading SaaS technology company that allows businesses to create a real-time connection with their customers, upends conventional assumptions about Canadian consumers and their relationship with brand loyalty, and highlights the importance of getting loyalty right for brands and retailers in the Canadian marketplace. 

The report is set against the backdrop of a shifting loyalty market in Canada, one that is experiencing the fragmentation of legacy loyalty programs like Air Canada and Aeroplan and subsequent consolidation of major retailers’ loyalty programs, like the recent fusion of the Loblaws and Shoppers Drug Mart initiatives into the PC Optimum program. Eagle Eye’s report, Shifting Loyalties, illustrates the pitfalls of mis-executing loyalty, as reflected in the surprising finding that 87% of Canadians currently belong to just five loyalty programs or fewer. 

Based on a survey conducted by Eagle Eye/Ipsos of 2,000 Canadian consumers, the report also contrasts the attitudes and behavior toward loyalty programs between different generations of Canadian consumers: Millennials, Generation X, and Baby Boomers. Other key statistics include:

• 45% of Canadians have quit a loyalty program, and among those who do quit, 57% shop less or quit shopping with the brand altogether
• 83% of Millennials support loyalty’s shift to the mobile environment, as do 64% of Gen X and 34% of Boomers
• 45% of consumers expect personalized offers and communications in exchange for sharing personal data

These and other findings within the report indicate a growing interest across all consumer groups for loyalty experiences and rewards that are personalized, valuable, easy-to-use and delivered in real time. Millennials (18-34) are raising expectations for data-driven, digital loyalty experiences, while Generation X (35-54) and Baby Boomer (55+) consumers – two demographics that deliver palpable spending power – are increasingly open to mobile technologies and social media influence. 

For brands and retailers across Canada, the report offers several prescriptions for data-based engagement strategies that will resonate with Canadian consumers. These include an embrace of digital and mobile earning and redemption options, the ability to leverage data to create personalized offerings and communications, and using non-transactional rewards to foster emotional loyalty. 

According to Eagle Eye CEO Tim Mason, the results of this consumer survey represent a significant opportunity for retailers. “The Canadian loyalty market is clearly shifting, while the value of customer data is increasing,” he says. “Brands that can create data-enabled, 1-to-1 interactions with their customers through their loyalty programs and engagement strategies will position themselves for significant competitive advantage.”

Eagle Eye, a London-based company with a growing presence in Canada, previously released a survey on loyalty in the United Kingdom that reinforced the importance of data in developing customer insights needed to drive effective loyalty programs and customer engagement.

“Loyalty programs, along with the wealth of customer touchpoints facilitated by consumer technology, yield a goldmine of data,” explains Mason. “From these surveys, we’ve learned that using data to develop a holistic customer view, and creating personalized, relevant experiences is the most advantageous and financially rewarding approach brands can take.”

For more information about Eagle Eye’s survey findings and the Canadian loyalty landscape, or to speak with Eagle Eye CEO Tim Mason, please contact Vanessa Horwell at [e-mail]. For more information about Eagle Eye, please visit www.eagleeye.com.

About Eagle EyeEagle Eye (LSE: EYE) is a leading SaaS technology company that allows businesses to create a real-time connection with their customers. The Company's digital marketing platform, Eagle Eye AIR, enables the secure, real-time, multi-channel issuance, management and redemption of digital promotions and rewards, replacing previously used paper-based methods. Eagle Eye’s platform creates a network effect between merchants, distributors and brands enabling stronger connections and value to all parties. With these capabilities, Eagle Eye enables brands and merchants to reduce cost, improve their customer offer and accelerate their innovation.

The Company's current customer base comprises Canada’s food and pharmacy leader Loblaws as well as leading names in UK grocery, retail and hospitality including John Lewis, Asda, J Sainsbury, Greggs, JD Sports, Ladbrokes, Marks & Spencer, Mitchells & Butlers, Pizza Express, Tesco and Thomas Pink.  Visit www.eagleeye.com to learn more.

MEDIA CONTACT:
Vanessa Horwell, ThinkInk
+1.305.749.5342 x 232
[e-mail]