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Canadian Loyalty in Financial Services - US - June 2013

“Canada has a mature loyalty market and the vast majority of adults belong to at least one – and usually several – programs. They are somewhat underutilized, however, with most participants rarely, if ever, actually redeeming any rewards. The challenge for program managers is how to make their programs effective enough to do what they were created to do: rewarding their most valued customers.”

– Robyn Kaiserman, Financial Services Industry Analyst

 Some questions answered in this report include:

  • What do loyalty customers want?
  • How can marketers increase participation in loyalty programs?
  • What are some attractive demographics to target?

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Table of contents

  1. Scope and Themes

    • What you need to know
      • Companies mentioned in this report
        • Data sources
          • Consumer survey data
            • Comperemedia
              • Abbreviations
              • Executive Summary

                  • The market
                    • A mature market
                      • Segments
                        • Credit card and debit card program membership
                          • Figure 1: Participation in credit and debit card rewards, by income, February 2013
                        • Non-card based loyalty programs
                          • Figure 2: Participation in non-card loyalty programs, by income, February 2013
                        • Loyalty program customers are generally satisfied with their programs
                          • Figure 3: Customer satisfaction with credit card and debit card programs, by gender, February 2013
                        • What loyalty members want
                          • Valuable incentives
                            • Figure 4: Incentive preferences, by age, February 2013
                          • Smartphone apps
                            • Figure 5: Interest in using smartphone to maximize loyalty program, by age, February 2013
                            • Figure 6: Interest in using smartphone to maximize loyalty program, by race, February 2013
                          • Better communication
                            • Figure 7: Satisfaction with loyalty program communication, by age, February 2013
                          • What we think
                          • Issues and Insights

                              • Key points
                                • What do loyalty customers want?
                                  • How can marketers increase participation in loyalty programs?
                                    • What are some attractive demographics to target?
                                    • Trend Applications

                                        • Trend: Buydeology
                                          • Opportunities for loyalty program marketers
                                            • Trend: Let’s Make a Deal
                                              • Opportunities for loyalty marketers
                                                • Trend: Generation Next
                                                  • Opportunities for loyalty marketers
                                                  • Market Size

                                                    • Key points
                                                      • Financial services loyalty program sector is driving loyalty growth
                                                        • Figure 8: Loyalty program membership (millions of members), by industry, 2008-10
                                                    • Marketing Channels

                                                      • Key points
                                                        • Digital adspend
                                                          • Figure 9: Financial services industry digital ad spend, 2011 vs. 2012
                                                          • Figure 10: Top 10 digital advertisers, digital ad spend, 2011 vs. 2012
                                                        • Social media
                                                            • Figure 11: Use of social media in order to earn rewards, by age, February 2013
                                                        • Segment Performance

                                                          • Key points
                                                            • Airline rewards are most popular among credit and debit card programs
                                                              • Figure 12: Participation in credit and debit card rewards, by income, February 2013
                                                              • Figure 13: Participation in non-card loyalty programs, by income, February 2013
                                                              • Figure 14: Participation in non-card loyalty programs, by age, February 2013
                                                            • Customer satisfaction with programs is generally high
                                                              • Figure 15: Customer satisfaction with Non-card programs, February 2013
                                                              • Figure 16: Customer satisfaction with credit card and debit card programs, by gender, February 2013
                                                          • Market Drivers

                                                            • Key points
                                                              • Unemployment
                                                                • Figure 17: Canadian unemployment rate, April 2011-April 2013
                                                                • Figure 18: Number of employed people, April 2011-April 2013
                                                              • Median income is rising
                                                                • Figure 19: Median household income, 2006-10
                                                              • Debt levels still high
                                                                  • Figure 20: Average non-mortgage consumer debt, Q4 2011-Q4 2012
                                                                • Consumer spending was up in Q1 2013, but still trending down
                                                                  • Younger consumers are almost half the population
                                                                    • Figure 21: Canadian population by generation, 2011
                                                                  • The Asian population is growing
                                                                    • Figure 22: Asian population numbers and percentage of total population, 2006 and 2031 (proj.)
                                                                  • Smartphone ownership is rising
                                                                    • Figure 23: Smartphone ownership, by age, February 2013
                                                                • Leading Companies

                                                                  • Key points
                                                                    • Canadian Tire
                                                                      • AIR MILES
                                                                        • Aeroplan
                                                                        • Innovations and Innovators

                                                                          • Key points
                                                                            • Facebook
                                                                              • STM – Loyalty without points
                                                                                • Loblaw’s smartphone app
                                                                                • Marketing Strategies

                                                                                  • Key points
                                                                                    • Reward vs. non-reward card mailings
                                                                                      • Figure 24: Total credit card acquisition mailings, Q1 2013
                                                                                      • Figure 25: Reward vs. non-reward credit card acquisition mailings, percentage of total, Q1 2013
                                                                                    • Direct mail
                                                                                      • Figure 26: TD Canada Trust direct mail ad, 2013
                                                                                      • Figure 27: Bank of Montreal/MasterCard rewards card, March 2013
                                                                                      • Figure 28: Scotiabank/SCENE Visa direct mail ad, February 2013
                                                                                    • Email
                                                                                      • Figure 29: President’s Choice email ad, March 2013
                                                                                      • Figure 30: Scotiabank/American Express gold card email ad, March 2013
                                                                                      • Figure 31: RBC/Visa email ad, January 2013
                                                                                    • Online advertising
                                                                                      • Figure 32: Scotiabank online ad, April 2013
                                                                                      • Figure 33: RBC® Visa Infinite Avion® online ad, April 2013-May 2013
                                                                                      • Figure 34: American Express online ad, March -May 2013
                                                                                    • Print advertising
                                                                                      • Figure 35: BMO print ad, April 2013
                                                                                      • Figure 36: CIBC print ad, March 2013
                                                                                      • Figure 37: Scotiabank American Express print ad, October 2012
                                                                                    • Television advertising
                                                                                      • Figure 38: Scotiabank television ad, 2013
                                                                                      • Figure 39: Citibank television ad, 2012
                                                                                      • Figure 40: PC Financial television ad, 2013
                                                                                  • Consumer Participation in Loyalty Programs

                                                                                    • Key points
                                                                                        • Figure 41: Participation by type of loyalty program, by gender, February 2013
                                                                                        • Figure 42: Participation by type of loyalty program, by age, February 2013
                                                                                        • Figure 43: Participation by type of loyalty program, by household income, February 2013
                                                                                        • Figure 44: Participation by type of loyalty program, by race, February 2013
                                                                                    • Satisfaction with Rewards Program

                                                                                      • Key points
                                                                                          • Figure 45: Satisfaction with rewards program, by gender, February 2013
                                                                                          • Figure 46: Satisfaction with rewards program, by age, February 2013
                                                                                      • Interest in Incentives to Use Loyalty Programs

                                                                                        • Key points
                                                                                            • Figure 47: Preferred incentive to use loyalty program, by gender, February 2013
                                                                                            • Figure 48: Preferred incentive to use loyalty program, by age, February 2013
                                                                                            • Figure 49: Preferred incentive to use loyalty program, by household income, February 2013
                                                                                            • Figure 50: Preferred incentive to use loyalty program, by gender and age, February 2013
                                                                                            • Figure 51: Preferred incentive to use loyalty program, by age and household income, February 2013
                                                                                        • Important Features of a Loyalty Program

                                                                                          • Key points
                                                                                              • Figure 52: Important features of loyalty program, by gender, February 2013
                                                                                              • Figure 53: Important features of loyalty program, by age, February 2013
                                                                                              • Figure 54: Important features of loyalty program, by household income, February 2013
                                                                                              • Figure 55: Important features of loyalty program, by gender and age, February 2013
                                                                                          • Loyalty Program Participation/Redemption Behavior

                                                                                            • Key points
                                                                                                • Figure 56: Loyalty program activity, by gender, February 2013
                                                                                                • Figure 57: Loyalty program activity, by age, February 2013
                                                                                                • Figure 58: Loyalty program activity, by household income, February 2013
                                                                                            • Switching Behavior and Rewards Programs

                                                                                              • Key points
                                                                                                • Figure 59: Influence of loyalty program on credit card switching, by gender, February 2013
                                                                                                • Figure 60: Influence of loyalty program on credit card switching, by household income, February 2013
                                                                                            • Redemption of Credit and Debit Card Rewards

                                                                                              • Key points
                                                                                                • Figure 61: Frequency of credit card rewards redemption in last year, by gender, February 2013
                                                                                                • Figure 62: Frequency of credit card rewards redemption in last year, by household income, February 2013
                                                                                                • Figure 63: Frequency of debit card rewards redemption in last year, by gender, February 2013
                                                                                                • Figure 64: Frequency of debit card rewards redemption in last year, by size of household, February 2013
                                                                                                • Figure 65: Frequency of redemption of credit or debit card rewards, by type of rewards program (net satisfied), February 2013
                                                                                                • Figure 66: Frequency of redemption of credit or debit card rewards, by type of rewards program (net satisfied), February 2013
                                                                                            • Shopping Behavior and Loyalty Programs

                                                                                              • Key points
                                                                                                • Figure 67: Shopping behavior and loyalty programs, by age, February 2013
                                                                                                • Figure 68: Shopping behavior and loyalty programs, by household income, February 2013
                                                                                                • Figure 69: Shopping behavior and loyalty programs, by race/ethnicity, February 2013
                                                                                            • What Consumers Want to Hear from Loyalty Programs

                                                                                              • Key points
                                                                                                  • Figure 70: Loyalty program interaction and communication preferences, by age, February 2013
                                                                                                  • Figure 71: Loyalty program interaction and communication preferences, by household income, February 2013
                                                                                                  • Figure 72: Loyalty program interaction and communication preferences, by race, February 2013
                                                                                              • Appendix – Industry Associations

                                                                                                Companies Covered

                                                                                                • Air Canada
                                                                                                • AIR MILES Travel Promotions Limited
                                                                                                • American Express Company (The)
                                                                                                • Canadian Tire Corporation, Limited
                                                                                                • MasterCard Incorporated
                                                                                                • Primus Telecommincations Ltd

                                                                                                Canadian Loyalty in Financial Services - US - June 2013

                                                                                                £3,199.84 (Excl.Tax)