The year 2023 promises to be a turbulent one. After a pandemic, it’s now galloping inflation that has consumers worried. Later this year, the new phase of Quebec’s Law 25 will impose more transparent and secure use of data on companies.
Let’s see how this context affects relationship marketing trends for 2023.
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Program redesign and enhancement
Closer customer relations
Our latest LoyalT study¹ shows that Canadians are enrolled in 13.5 loyalty programs, but use only 7.1 of them. If these programs are not fully utilized, it’s because they haven’t yet developed a strong relationship with their members.
In 2023, our experts are expecting many program redesigns and improvements. In addition to being up to date, programs must strive to create greater engagement with their members by developing the affective side of the relationship. Offering only discounts or points linked to total purchases is no longer a sufficient strategy.
To achieve this, there are a number of best practices.
- Customer-centric approach (not focused on company performance)
- Exclusives
- Useful features that make life easier or save time
- Unique content and experiences
- Personalized offers and content
- Surprise & delight
Further reading: 4 reasons why you should incorporate surprises & pleasures into your loyalty program
Anti-inflation initiatives
The period of inflation has given rise to a trend in relationship marketing towards anti-inflation initiatives.
A good loyalty program responds to the needs and concerns of its members. We therefore expect many programs to adjust by offering initiatives that save members money. In addition to listening to members, this makes the programs seem generous, a quality that pays off in loyalty.
Crédit: Morrisons website
A good example in this context is Morrisons Supermarkets (England and Scotland)². To help members save even more, several offers have been added to their loyalty program.
- More points offers on frequently purchased products
- More point offers on meat and dairy products
- Surprise offers to save during specific periods (e.g. Mother’s Day)
- The chance to earn bonus points on every transaction with the physical card or mobile application
Customer data management
Of all the 2023 trends in relationship marketing, that of data management is irreversible. With the imminent end of third-party cookies and the new phase of Quebec’s Law 25, Canadian companies have no choice but to adapt their marketing strategy.
As a first step, brands and companies need to review their data strategy. They need to prioritize their own customer data – zero and first-party data. Apart from developing a loyalty program, surveys, competitions and gamification activities are good tactics to start cultivating data.
This data collection must be carried out with clear and transparent consent, as required by Law 25. In force from September 2023, the new phase of the law ensures informed consent and the cybersecurity of customer data. The use of a consent manager (CMP) will therefore become essential.
Investment in proprietary data is one of the keys to success in improving the performance of relationship marketing strategies. More than ever, we see analytics becoming the main lever for relationship program performance.
Do you need help structuring your database? Trust our expert partners at Adviso.
Premium and subscription programs
Increasingly popular, subscription services and Premium programs are based on the same principle: offering complementary or exclusive benefits and/or rewards in exchange for a monthly or annual fee.
In concrete terms, by paying a fee, members can gain access to free and/or faster delivery, a discount, more bonus points, a welcome gift, exclusive offers, and more.
Subscription programs |
Premium programs |
Amazon Prime |
PC Optimum Insiders (Loblaws) |
Harley Owners Group (HOG) |
Triangle Select (Canadian Tire) |
Walmart + |
Plum + (Indigo, Chapters) |
The impact of this strategy is highly significant. Whether in food, fashion, petrol stations, pharmacies or restaurants, brands that adopt a Premium program benefit from numerous advantages.
- Recurring revenue
- High profitability due to increase in members’ share of wallet, purchase concentration and frequency of visits
- Increased brand engagement
- Higher perception of generosity (even if it’s the members who pay)
Crédit: Walmart website
At Walmart, 60% of Walmart+ members make a purchase every month³. This percentage drops drastically to 16% among non-members. At Amazon Prime, the figures are 61% versus 10%.
This trend has been present in the United States for several years. Almost three out of four customers (72%) are members of at least one Premium⁴ program. By 2023, the R3 team expects this trend to be more widely adopted in Canada.
Need advice on how to adapt your relationship marketing strategy to the trends of 2023? Our team can help.
Development of a new program
Improvement of an existing program
Best practices analysis
Marketing strategy and data