Top 10 Loyalty and Reward Program Statistics

Whether you currently have your own loyalty or reward program, or you are considering starting one, here are the Canadian Loyalty Statistics you need to know:

1. Canadians are enrolled in an average of 13.5 programs, an increase from 2020 where the average was 10, and seven programs are used on a regular basis. [Leger/R3]

2. Canadians tend to be more loyal to brands whose loyalty programs they use. As many of 75% of consumers define loyalty as participating in a rewards program. [KPMG]

3. 67% of Canadians say they modify where/when they buy and the amount they spend to maximize rewards, and 77% say Programs make me more likely to continue doing business with Brands. [Bond Loyalty]

4. Canadians are among the most active loyalty program users in the world, with 56% making purchases that earn rewards or benefits several times a week. [KPMG]

5. 72% of Millennials and Gen Z, 68% of Generation X, and 57% of Baby Boomers and Traditionalists indicated they are more likely to buy from retailers or brands offering loyalty or rewards programs. [Statista]

6. Loyalty programs have been entrenched in the Canadian retail landscape ever since the introduction of Canadian Tire money in 1958. A recent study found that Canadians today have almost 130 million memberships. [PWC]

7. Research shows repeat customers are much more valuable than new ones. The probability of selling to a returning customer is 60-70%, while the probability of selling a product to a brand-new customer is only 5-20%. [Altfeld]

8. During a survey conducted among Canadian consumers in 2020, 82 percent of responding Canadians were willing to pay more in support of products or services from companies and brands they trusted. [Statista]

9. 58.7% of internet users worldwide stated that earning rewards or loyalty points is one of the most valued aspects of their retail shopping experience, second only to a quick and easy check-out. [eMarketer]

10. Canadians rank product quality (74%), product consistency (71%), and value for money (60%) as their top three brand loyalty considerations. [KPMG]

A loyalty or reward program can help a business achieve so many different goals

No other marketing tool can impact so many business goals and integrate into everything a business is already doing this easily.

Revenue Growth

Attract new business
Stand out from your competition
Get noticed online
Increase sales
Increase average spend and purchase frequency
Increase sales conversions online
Reduce cart abandonment

Customer Acquisition and Retention

Improve customer satisfaction
Drive endorsements and referrals
Get repeat customers
Increase a customer’s lifetime value (CLV)
Grow your database
Improve your margins

Employee Recognition

Attract top talent
Retain great employees
Improve employee performance
Drive higher employee productivity
Increase employee training completion and engagement

B2B

Get long term commitments from business clients
Get paid faster
Encourage electronic invoicing and payments
Reduce accounts payables and collections
And more…

Example of results from a Loyalty or Reward Program

Average collector transaction size grew
The number of transactions by collectors grew
Gross sales by collectors grew
AIR MILES customers traveled longer distances to the business compared to average customers
Moved more merchandise at a lesser cost than the cash discount
Collectors spend more than non-collectors, plus their spending can be substantially increased during promotional periods.
Increase in visits during the promotion period
Reward offer was chosen more than the discount offer, and cost the least for the retailer
More test drives converted to sales
Buyers from the test drive offer had never purchased the brand before
Test drive customers opted-in to ongoing communications
Increase in units sold year over year
Car buyers chose in-house financing
Increase in monthly quotes
Increase in net new policies
The number of transactions increased from the previous year
Customers spending more than before the Program was implemented
More cardholders than non-cardholders had their vehicle serviced twice that year
Sold significantly more units than the usual on a Friday morning at a trade show
More customers chose Miles over cash or gift cards
Miles cost less than cash incentives and gift cards
YOY total revenue growth
Customer base and average revenue per user increase
Increased incremental revenue across all targeted collector segments and generated positive ROI
Collectors said incentives helped them engage in physical activity at the facilities more often
Free hearing test offer converted to sales
Collectors more likely to purchase two units instead of one when compared to non-collector
6x more transactions during the promotional period compared to the same period the year before
Increased their purchases YOY compared to non-collectors
Emails branded with the reward program had a higher click-through rate
Higher employee retention rate
Savings in recruitment, training, and operational costs
Reduced workplace injuries and increased employee engagement
Significant WSIB rebate
Positive ROI with happy and safe employees

Need help starting your Loyalty or Reward Program?

It’s no secret that reward programs have become an essential part of any marketing tool kit in a modern marketplace where consumers have endless choices and information at their fingertips – literally from anywhere, thanks to mobile phones.

Businesses across Canada envision starting their own reward programs and quickly learn it is not a simple endeavor. There are a few alternatives to building your own reward program.

Having the AIR MILES® Reward Program is one of the options thanks to AIR MILES INCENTIVES®, a tailored and flexible solution made specifically to meet the needs of small to medium-sized businesses*. Our team members have a combined 60+ years of reward program knowledge and experience.

We have built programs for over 500 businesses over the last 13 years. Every one of them has been entirely customized to the specific circumstances and goals of that unique business.