6/12/2023 0 Comments Colloquy loyalty census![]() “It becomes a question of how many consumers you will lose versus how much you will lose in your books.” “It’s a liability, when you lower the points you don’t owe people as much,” De Bellefeuille says. The reason to devalue the points is plain and simple, she says. “No company is there just to give gifts,” she says, adding sometimes consumers also shop at a slightly more expensive store because of the points. The argument by some is that points are giving you something for nothing, but the Montreal lawyer says your data or information about yourself is what you are giving. “Now you need more to get the same thing.” “What (the lawsuit) is based on is there was a contract for a certain period amount of time and it said your points had a certain value and what they did is lower the value of those points,” says Sylvie De Bellefeuille. ![]() Her case is still winding its way through the courts. Lawyer Sylvie De Bellefeuille with Option Consommateurs, an association that advocates for consumers and has launched a class action against Pharmaprix, Shoppers Drug Mart Corp., over points, argues you can’t just change the points structure either. There’s another reason points program can’t simply just end - they are a legal and financial liability. There are no immediate plans to end the Shoppers Optimum program,” said Tammy Smitham, vice-president, external communication, Loblaw and Shoppers Drug Mart, in an emailed statement. We understand the value of our customer loyalty program and this continues to be a major focus for us. The new terms and conditions indicate there will be a 45-day notice period should the program end. As a result, there is no longer an end date of Dec. “Yes, we revised the terms and conditions in September to make them more reflective of other loyalty program standards. Shoppers officials say there are no plans to end the Optimum loyalty program despite the recent changes in the terms and conditions that have some consumers convinced its future is limited. Sure, the advertising goes up, but you were going to spend some money on that already.” “The unification of the back office to get scale efficiencies, you don’t lose that. “I think it’s a bit like the TD Canada Trust situation where everybody thought (TD Bank) would drop (the) Canada Trust (name) from the banner but found they couldn’t do it,” said Wong, adding the efficiencies from joining two programs together can be achieved without completely eliminating the brands. When Air Canada swallowed up Canadian Airlines in 2000, it rolled its points program into Aeroplan and made the transition more palatable by including some elements of its formal rival’s Canadian Plus features, like the concierge program for its top tier flyers, while also respecting their status level. Ken Wong, a marketing professor with the Smith School of Business at Queen’s University in Kingston, Ont., figures Loblaw probably wanted to roll the Optimum program into its own PC Plus rewards program, but realized it was going to face some backlash under a single banner. Naturally, any change to a loyalty program risks challenging the very nature of why it exists - namely, to keep customers coming back to a certain brand. They get their six segments and secure their top tier status on one Saturday,” Pearson says. “They’d be six segments away from achieving top tier status so they book a ticket where they go Toronto to Chicago to Washington to New York to Boston to Toronto. ![]() This advertisement has not loaded yet, but your article continues below. Her 2016 gross purchases at Shoppers would have been $1,746 she says, but the coupons and redeemed points cut her spending to $1,078. In an economy with low wage growth, people need the extra cash breaks wherever they can get them. I spend a lot of my time travelling the world meeting with other program operators and looking at the structure of loyalty programs in different countries and Canada is probably one of the most developed loyalty program markets in the world,” says Bryan Pearson, chief executive of LoyaltyOne.īut Wiegard says there’s more than fun to points collecting. ![]() The retail sector accounts for the biggest chunk of membership at 48 per cent and it grew by 12 per cent in 2015. A 2015 study from Colloquy Loyalty Census Canada, run by LoyaltyOne - the operator of the Air Miles program - found Canadians have almost 130 million memberships, or an average of more than four per person. The points game has become part of the Canadian shopping fabric.
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