Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Loyalty in Financial Services - Canada - April 2015

“The preference of high income earners for unique/non-purchasable rewards is an opportunity for marketers to think out-of-the-box and come up with creative rewards which may not be materially extravagant, but appeal to the status conscious.”
– Sanjay Sharma, Senior Financial Services Analyst

This report looks at the following areas:

  • Designing winning features that resonate with target segments
  • Bridging the trust deficit towards the financial services industry among certain segments
  • Improving loyalty program tracking and communication
  • Enhancing the appeal of loyalty programs among younger Canadians

Canadians love to participate in loyalty programs and this has resulted in one of the most vibrant markets in the world in this regard. Marketers have used loyalty programs to influence the shopping habits of consumers and have made the pursuit of loyalty rewards an everyday activity in the lives of most Canadians. As consumers are inundated with offers, it is important for loyalty marketers to understand the features that consumers value and how to design a program that resonates with their target segment.

Financial institutions also pay a great deal of attention to the topic of customer retention and how to distinguish their program from their competitors. This report aims to tie in these two themes by examining the reasons behind why customer switch financial institutions, their participation in loyalty programs, features they value most and general attitudes around the theme of customer loyalty. It also examines how loyalty programs influence shopping decisions and how satisfied customers are with loyalty program tracking and communication.

 

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Methodology
        • Abbreviations
        • Executive Summary

            • Market factors
              • Overall negative impact of lower oil prices on the Canadian economy
                • Impact of interest rates, inflation and exchange rates
                  • Outlook on the real estate and housing market
                    • British Columbians have the highest net worth
                      • Household debt in Canada
                        • Population count and growth in Canada
                          • Companies, brands and innovation
                            • The consumer
                              • Most Canadians are loyal to their main financial institution
                                • Figure 1: Switching of main FI in the past five years, February 2015
                              • About a third switch due to better deals
                                • Figure 2: Reasons for switching main FI (top three reasons), February 2015
                              • Travel rewards top the list of Canada’s most popular loyalty programs
                                • Figure 3: Types of loyalty programs participated in the past year, February 2015
                              • Convenience, cashback and immediate discounts rated as the most important features of a loyalty program
                                • Figure 4: Most important features of a loyalty/rewards program (top five), February 2015
                              • Females aged 35-54 are most likely to be strategic shoppers influenced by loyalty programs
                                • Figure 5: Summary of attitudes towards loyalty, February 2015
                              • What we think
                              • Issues in the Market

                                  • Designing winning features that resonate with target segments
                                    • The facts
                                      • The implications
                                        • Bridging the trust deficit towards the financial services industry among certain segments
                                          • The facts
                                            • The implications
                                              • Improving loyalty program tracking and communication
                                                • The facts
                                                  • The implications
                                                    • Enhancing the appeal of loyalty programs among younger Canadians
                                                      • The facts
                                                        • The implications
                                                        • Trend Application

                                                            • Trend: Secret Secret
                                                              • Trend: Let’s Make a Deal
                                                                • Trend: Prove it
                                                                • Market Factors

                                                                  • Key points
                                                                    • Economic overview
                                                                      • Overall negative impact of lower oil prices on the Canadian economy
                                                                        • Figure 6: Canada’s GDP, by quarter, Q4 2008-Q4 2014
                                                                        • Figure 7: Household disposable incomes and savings in Canada, by quarter, Q4 2008-Q4 2014
                                                                        • Figure 8: Canada’s unemployment rate, by gender, 2008-15
                                                                      • Impact of Interest rates, inflation and exchange rates
                                                                        • Figure 9: Inflation rates in Canada (%), 2004-14
                                                                      • Bank of Canada cuts interest rate to 1% in January 2015
                                                                        • Figure 10: Canada bank rate by month, 2005-15
                                                                      • Outlook on the real estate and housing market
                                                                        • British Columbians have the highest net worth
                                                                          • Figure 11: Canada median net worth, by province, 2012
                                                                        • Household debt in Canada
                                                                          • Consumer Confidence
                                                                            • Figure 12: Consumer Confidence Index, monthly, January 2008-February 2015
                                                                          • Demographic overview
                                                                            • Population count and growth in Canada
                                                                              • Figure 13: Share of population of Canada, by territory/province, 2015 (projected)
                                                                            • Minority groups account for less than 20% of Canada’s population
                                                                              • Figure 14: Estimated population of Canada, by ethnicity, 2011
                                                                            • Canada’s population is expected to age in the coming years
                                                                              • Figure 15: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
                                                                              • Figure 16: Projected trends in the age structure of the Canada population, 2014-19
                                                                          • Who’s Innovating?

                                                                            • Key points
                                                                              • AIR MILES, YMCA and Public Health Agency Initiative to Drive Fitness Participation
                                                                                • About the participants
                                                                                  • Montreal Canadiens Club 1909 and San Francisco 49ers Faithful 49 loyalty schemes
                                                                                    • MasterCard and One Inc.’s loyalty program solution
                                                                                      • SCENEtourage from SCENE
                                                                                      • Loyalty Programs

                                                                                          • Air Miles
                                                                                            • Overview
                                                                                              • Recent news
                                                                                                • SCENE
                                                                                                  • Overview
                                                                                                    • Recent news
                                                                                                      • Aeroplan
                                                                                                        • Overview
                                                                                                          • Recent news
                                                                                                            • PC Plus
                                                                                                              • Overview
                                                                                                                • Canadian Tire Money
                                                                                                                  • Overview
                                                                                                                    • Recent news
                                                                                                                      • Starbucks Card
                                                                                                                        • Overview
                                                                                                                        • Brand Communication and Promotion

                                                                                                                          • Key points
                                                                                                                            • RBC is the largest direct mailer of loyalty/rewards cards
                                                                                                                              • Figure 17: Top loyalty (rewards) direct mailers, February 2014 to February 2015
                                                                                                                            • Selected Campaigns from Mintel Comperemedia
                                                                                                                              • RBC Visa Infinite Avion Travel Rewards Card Card
                                                                                                                                • University of Toronto Platinum Plus MasterCard
                                                                                                                                  • Rogers First Rewards MasterCard
                                                                                                                                  • The Consumer – Switching of Main Financial Institution

                                                                                                                                    • Key points
                                                                                                                                      • Most Canadians are loyal to their main financial institution
                                                                                                                                        • Figure 18: Switching of main FI in the past five years, February 2015
                                                                                                                                      • Young males most likely to switch their main financial institution
                                                                                                                                        • Figure 19: Switching of main FI in the past five years, by age and gender, February 2015
                                                                                                                                      • About a third switch due to better deals
                                                                                                                                        • Figure 20: Reasons for switching main FI (top three reasons), February 2015
                                                                                                                                    • The Consumer – Loyalty Program Participation

                                                                                                                                      • Key points
                                                                                                                                        • Travel rewards top the list of Canada’s most popular loyalty programs
                                                                                                                                          • Figure 21: Types of loyalty programs participated in the past year, February 2015
                                                                                                                                        • Females have a higher participation rate across most programs
                                                                                                                                          • Figure 22: Loyalty participation by gender, February 2015
                                                                                                                                        • Quebecers have a lower participation rate in loyalty programs
                                                                                                                                          • Figure 23: Loyalty program participation (any), by region, February 2015
                                                                                                                                        • Some 56% of Canadians participate in three or more loyalty programs
                                                                                                                                          • Figure 24: Repertoire analysis of participation in loyalty programs, February 2015
                                                                                                                                        • Key Driver Analysis
                                                                                                                                          • Methodology
                                                                                                                                            • Receiving special status drives leisure/entertainment program participation
                                                                                                                                              • Figure 25: Key drivers of Loyalty Program Participation, February 2015
                                                                                                                                          • The Consumer – Most Important Loyalty Program Features

                                                                                                                                            • Key points
                                                                                                                                              • Convenience, cashback and immediate discounts rated as the most important features of a loyalty program
                                                                                                                                                • Figure 26: Most important features of a loyalty/rewards program (top five), February 2015
                                                                                                                                              • Status and better service appeal more to men
                                                                                                                                                • Figure 27: Loyalty program features rated higher by males relative to females, February 2015
                                                                                                                                              • A quarter of high income earners would like to be granted special status by their loyalty program
                                                                                                                                                • Figure 28: Differences in feature preferences between low and high income earners, February 2015
                                                                                                                                              • Older Canadians place a higher value on convenient reward redemption
                                                                                                                                                • Figure 29: Differences in feature preferences, by age, February 2015
                                                                                                                                            • The Consumer – Attitudes towards Loyalty

                                                                                                                                              • Key points
                                                                                                                                                • Summary of Attitudes
                                                                                                                                                  • Figure 30: Summary of attitudes towards loyalty, February 2015
                                                                                                                                                • Females aged 35-54 are most likely to be strategic shoppers influenced by loyalty programs
                                                                                                                                                  • Figure 31: Attitudes related to the strategic use of loyalty programs, February 2015
                                                                                                                                                • Younger Canadians are relatively less satisfied with loyalty program communications and tracking
                                                                                                                                                  • Figure 32: Attitudes related to tracking of loyalty programs, February 2015
                                                                                                                                                • About half of Canadians have a perception of unfair customer treatment from the financial services industry
                                                                                                                                                  • Figure 33: Attitudes relating to value and fairness, February 2015
                                                                                                                                              • The Consumer – Chinese Canadians and Loyalty

                                                                                                                                                • Key points
                                                                                                                                                  • Chinese Canadians have a higher membership rate across most loyalty programs
                                                                                                                                                    • Figure 34: Membership of loyalty programs, Chinese Canadians vs overall population, February 2015
                                                                                                                                                  • Chinese Canadians place more value on receiving cashback on purchases and being granted special status
                                                                                                                                                    • Figure 35: Importance of loyalty program features, Chinese Canadians vs overall population, February 2015
                                                                                                                                                  • Chinese Canadians more likely to be strategic shoppers who aim to maximize rewards
                                                                                                                                                    • Figure 36: Agreement with loyalty attitudes, Chinese Canadians vs overall population, February 2015
                                                                                                                                                • The Consumer – LGBT Canadians and Loyalty

                                                                                                                                                  • Key points
                                                                                                                                                    • LGBT customers have a higher propensity to switch their main financial institution
                                                                                                                                                      • Figure 37: Switching of main FI in the past five years, LGBTs vs overall population, February 2015
                                                                                                                                                    • Movie theatre and airline loyalty programs resonate more with LGBTs
                                                                                                                                                      • Figure 38: Participation in loyalty programs, LGBT Canadians vs overall population, February 2015
                                                                                                                                                    • LGBT customers are less trustful of the financial services industry
                                                                                                                                                      • Figure 39: Agreement with select attitudes towards loyalty, LGBT Canadians vs overall population, February 2015
                                                                                                                                                  • The Consumer – Target Groups

                                                                                                                                                    • Key points
                                                                                                                                                      • Three target groups
                                                                                                                                                        • Figure 40: Target groups, February 2015
                                                                                                                                                      • Disengaged (38%)
                                                                                                                                                        • Cynics (32%)
                                                                                                                                                          • Traditionalists (30%)
                                                                                                                                                          • Appendix – Key Driver Analysis

                                                                                                                                                              • Interpretation of results
                                                                                                                                                                • Figure 41: Credit or debit rewards program participated in the past year - key driver output, February 2015
                                                                                                                                                                • Figure 42: Store loyalty program participated in the past year - key driver output, February 2015
                                                                                                                                                                • Figure 43: Leisure or entertainment loyalty program participated in the past year - key driver output, February 2015

                                                                                                                                                            Companies Covered

                                                                                                                                                            To learn more about the companies covered in this report please contact us.

                                                                                                                                                            Loyalty in Financial Services - Canada - April 2015

                                                                                                                                                            £3,199.84 (Excl.Tax)