Canadians love loyalty, but they are more loyal to a deal [Sponsored] – Macleans.ca

Faced with decades-long inflation, Canadians are changing how often they shop, where they shop and what they buy as they pursue deals and rely on loyalty programs. However, brands and loyalty programs have been slow to respond, recognizing the change with solutions that empower consumers.

“In a challenging economic climate marked by conscious spending, retailers must offer whatever additional value they can,” says Shawn Stewart, president of AIR MILES. “We know that Canadians are members of more than 13 loyalty programs and are active in seven. Instead of fighting that reality, we are redesigning AIR MILES as an open and flexible program, creating solutions that can layer on top of existing retail programs, provide opportunities for CPG brands, and give Canadians the opportunity to earn money wherever they shop for food. . .”

AIR MILES research has found that consumers overwhelmingly prefer retailers that offer loyalty programs over those that don’t: 82 percent said they were more likely to shop at a store with a loyalty program, 69 percent said the retailer of their choice was influenced depending on whether they could earn loyalty points, and 66 percent will modify where and when they make a purchase to maximize their points.

Nowhere is this more evident than in the grocery category, where single-flag loyalty and weekly stores have given way to smaller, more frequent baskets in multiple locations, combined with larger stores in warehouse clubs or hypermarkets. . Enter AIR MILES Receipts, a receipt scanning program launched nationwide in November that offers a new way for Canadians to earn rewards on everyday items purchased in-store at most major grocery stores. Collectors check the AIR MILES app for available offers, purchase eligible products and scan a photo of their receipts using optical recognition technology within the app, earning bonus Miles on qualifying purchases.

For collectors, the best part is that you can shop wherever you want, use your retailer’s specific loyalty programs to earn rewards for your purchases, and then place AIR MILES receipts on top to earn bonus Miles, effectively earning you the rewards. twice in one basket. This feature amplifies collectors’ earning potential with the same spend. Exactly the kind of flexibility and savings maximization Canadians are looking for.

While major grocery stores benefit from weekly promotions that draw collectors into stores, partner CPG brands enjoy a variety of benefits not typically offered to them:

• Improve marketing effectiveness: As companies continually look for opportunities to drive vertical growth, data-driven marketing for CPG and brands at scale not only delivers better sales results but also improves marketing efficiency. Through AIR MILES Receipts and its data-driven capabilities, partners can better understand the impact their product promotion is having in driving incremental sales (at major grocery stores nationwide vs. a single sign or group of posters), allowing them to better optimize future spending. Brands can analyze the effectiveness of promotions and campaigns, identify SKUs sorted into the basket, and evaluate KPIs for product sales across categories by supplier.
• Boost customer loyalty: Historically, customer loyalty is difficult for CPGs and brands to measure. Manufacturers typically ship their products to stores for retail sale, with little to no interaction between the brand and its customers. Because AIR MILES can attribute each receipt to a unique customer, brands can identify repeat buyers and uncover behavioral trends that help them discover ways to encourage future repeat purchases. Insights also offer a comprehensive perspective across multiple retailers, enabling a deeper understanding of brand engagement and loyalty measurement.
• Discover customer insights: With hundreds and thousands of brands and products sold at any given time, it is increasingly important for CPG brands to delve into a detailed understanding of their customer profiles. With AIR MILES receipts, you gain access to powerful demographic and behavioral insights to drive targeted marketing plans and future product innovations.
• Acquire new clients: Customer acquisition is often one of the most expensive components of a marketing strategy. CPGs and brands can use the AIR MILES network and AIR MILES receipts to identify customers who have a high probability of purchasing their products but are not doing so today.
• Co-branded marketing partnerships: Many companies looking to reach a broader customer base and improve their value proposition are turning to co-branding in product marketing. With the AIR MILES Receipts Basket Engagement Report, brands can tap into new markets and expand their reach by identifying what other items a customer puts in their basket when purchasing products in their categories, and develop co-branded offers that incentivize behavior established of the consumer.

“Here at AIR MILES, we pride ourselves on tracking consumer behavior and creating ways for Canadians to earn and redeem Miles that fit their multi-dimensional lives,” says Stewart. “We are working to transform AIR MILES into an open, flexible program that can meet the needs of each individual collector, brand and business, ultimately improving profitability and overall competitive advantage,” says Stewart.