Study

Key Loyalty Statistics in Canada

Par 7 May 2024 May 21st, 2024 Aucuns Commentaires
Symbolique des statistiques de fidélisation au Canada : une loupe sur la feuille d'érable montre l'attention portée aux programmes de récompenses

Dive into the latest loyalty industry statistics based on responses from 10,000 Canadians!

 

Table of Contents
Portrait of Canadian members
Usage of programs
Behavior and increase in share of wallet
Digital and mobility
Preferred benefits
General recommendation

 

The Canadian statistics come from our LoyalT1 study. Conducted annually, the LoyalT study provides a clear picture of the performance of loyalty programs in Canada. Conducted by R3 Marketing/Adviso, the study evaluates more than 80 loyalty programs with the responses of 10,000 Canadians, including 4,000 Quebecers. After six editions, the study has established itself as an essential reference for evaluating the performance of a loyalty program, particularly thanks to its 25 performance indicators. Learn more.

Portrait of Canadian members

7% more women among active members

Since the creation of the LoyalT study, the number of women having and using programs is slightly higher than the number of men. In 2023, this difference is 7%. The difference is partly explained by women being more often in charge of household purchases than men.

15.8 programs owned among young people

Contrary to preconceived ideas in marketing, millennials are quite interested by loyalty programs. This is the group who has the most membership to programs (15.80), followed by adults aged 35 to 54 (15.55). The average in Canada is 14.3.

28% higher usage among affluent Canadians

Many falsely believe that loyalty programs attract the less fortunate group of our society, looking for savings. LoyalT shows that in reality programs are popular with wealthy Canadians ($100,000+ annual income). On average, they have 26% more programs and use them 28% more frequently than those whose incomes are below $60,000 of annual income.

Usage of programs

14 programs owned, but 7 used

Overview of the number of loyalty programs Canadians own and use between 2017 and 2023 according to the LoyalT study

Canadians have never had so many loyalty programs. They have an average of 14.3 programs in their wallets. Fifty-two percent of them are members of more than 13 programs. However, only 7.36 programs are used on a regular basis, which is half (51%).

Despite the low growth in the number of programs since 2021, our experts believe that there is still room for more in Canadian wallets.

Recommendations
  • Programs are proliferating and enrollment is getting easier. A good onboarding strategy is essential to activate new members and keep them engaged.
  • Make sure your onboarding and engagement strategy are adequate. Your program needs to be in the top seven programs used by Canadians if you want to reap the full benefits of loyalty and get a high return on investment (ROI).

The activity rate of loyalty programs in Canada reveals consumer behavior from 2017 to 2023 according to the LoyalT studyActivity rate of 66%

Of the 51% active members, 66% say they “always” or “most of the time” use a program. Similar to previous years, this rate seems to be a legacy of the COVID-19 pandemic. Before the pandemic, this average was reaching 82%.

Recommendations
  • Track your program usage rates by customer segment.
  • Wisely select relevant key performance indicators (KPIs) to evaluate your activity rate.
  • Identify and activate the levers of engagement that are most relevant to your program.
  • Develop a welcome strategy to engage your members as soon as they sign up.

Behavior and increase in share of wallet

1 in 2 members say they go more often to the same retailers and concentrate their purchases within a program.

Again, the LoyalT study highlights the significant impact of loyalty programs on behaviour changes.

47% of Canadian program members say they go more often to the same retailer and 50% say they concentrate their purchases within a program. These numbers show an increase of two to four percentage points respectively vs. 2021.

These statistics show the power loyalty programs have in the marketing landscape. In a world without cookies, only a few marketing strategies can promise results as good as those focusing on behaviour changes triggered by a loyalty program.

Recommendation
  • The impact of a loyalty program can be significant, but it must be well-developed. Ensure that your loyalty program is not merely a marketing project, but rather a business vision of the company.
If you are developing a program, be sure to avoid these three common mistakes.

Digital and mobility

43% use a physical loyalty card; 32% a digital card

Although most of the members (43%) still use a physical card in 2023, the gap between a physical card and its digital form is narrowing. In some business sectors like drugstores, gas stations and supermarket, it is often necessary to offer both options because of the diversity in the clientele.

48% of 18-24 year olds prefer digital compared to 17% of 55+ year olds

Unsurprisingly, age is a key factor in the card type preference. Young people prefer digital cards, while older people prefer physical cards.

51% of Canadians prefer mobile

Loyalty programs are increasingly used among members through their mobile phone. One in two Canadians say they consult their loyalty programs on their mobile device. The popularity of mobile has increased by 20% since 2020.

Also playing a significant role are the preferred loyalty identification device and members’ age. As far as MyMcDo and Garage/Dynamite Studio programs go, which both target a younger audience, mobile use rises to 75% and 82% respectively.

55% of 18-54 year olds engage in gamification activities

Gamification activities are borrowed from the video games industry and adapt perfectly to loyalty strategies. Not only do they share similarities to reward systems, but they also create a strong engagement with users.

This type of initiative is also often presented in the form of a questionnaire or contest to gather additional data on members.

It is particularly popular among young adults aged 18-34 (59%), but still receives a positive response from those aged 35-54 (50%). However, individuals aged 55 and over engage in gamification less frequently (31%).

Preferred benefits

Favorite benefits of Canadians: points and freebies

When asked about what benefits or rewards they prefer, Canadian program members have not changed their mind over the years: points on transactions and free products remain essential. Rated on a scale of 1 to 10, they received average scores of 7.69 and 7.62.

Recommendation
  • Ensure that your program does not solely rely on transactional loyalty. A good loyalty program in 2024 should include benefits and features that improve members’ lives, save them time, and create an emotional connection with the program.

Preferred assets: omnichannel experience and mobile adaptation

The customer experience with the program is just as important as the benefits or the rewards. Enjoying a seamless omnichannel experience on mobile devices is critical to Canadians. They obtain scores of 6.77 and 6.61 out of 10 respectively.

Specifically, a well-designed omnichannel experience allows members to:

  • Earn and redeem points both in store and online
  • Get consistent customer service
  • Enjoy an identical user experience on multiple platforms

Although this concept may seem obvious, some sectors such as hospitality and aviation are lagging behind.

General recommendation

While loyalty statistics in Canada can provide a relevant picture, they may not necessarily apply to your business. To develop the right loyalty strategy, it is crucial to deepen your knowledge of your customer segments.

 

To optimize or evaluate your loyalty program, contact us now.

 

LoyalT Study, Top 10 loyalty programs in Canada and latest trends


1 2023 LoyalT study : web survey conducted by Léger from June 27 to July 25, 2023, amongst 10,000 Canadian respondents, including 4,000 Quebecers aged 18 and over, selected from the LÉO panel.
Hans Laroche

Hans Laroche

With over 35 years of experience in relationship marketing, loyalty program management, and development, Hans Laroche contributes to the relationship strategies of numerous companies, including Nespresso, The Royal Canadian Mint, Fido, belairdirect, Cirque du Soleil, Énergir, McKesson, and Desjardins. He has also been sharing his passion with master's students at ESG UQAM and the University of Sherbrooke for 30 years.

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