Table of Contents
Executive Summary
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- 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
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- Figure 1: Switching of main FI in the past five years, February 2015
- About a third switch due to better deals
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- Figure 2: Reasons for switching main FI (top three reasons), February 2015
- Travel rewards top the list of Canada’s most popular loyalty programs
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- 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
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- 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
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- Figure 5: Summary of attitudes towards loyalty, February 2015
- What we think
Issues in the Market
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- 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
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- Trend: Secret Secret
- Trend: Let’s Make a Deal
- Trend: Prove it
Market Factors
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- Key points
- Economic overview
- Overall negative impact of lower oil prices on the Canadian economy
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- Figure 6: Canada’s GDP, by quarter, Q4 2008-Q4 2014
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- 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
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- Figure 9: Inflation rates in Canada (%), 2004-14
- Bank of Canada cuts interest rate to 1% in January 2015
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- Figure 10: Canada bank rate by month, 2005-15
- Outlook on the real estate and housing market
- British Columbians have the highest net worth
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- Figure 11: Canada median net worth, by province, 2012
- Household debt in Canada
- Consumer Confidence
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- Figure 12: Consumer Confidence Index, monthly, January 2008-February 2015
- Demographic overview
- Population count and growth in Canada
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- Figure 13: Share of population of Canada, by territory/province, 2015 (projected)
- Minority groups account for less than 20% of Canada’s population
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- Figure 14: Estimated population of Canada, by ethnicity, 2011
- Canada’s population is expected to age in the coming years
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- 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?
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- 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
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- 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
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- Key points
- RBC is the largest direct mailer of loyalty/rewards cards
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- 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
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- Key points
- Most Canadians are loyal to their main financial institution
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- Figure 18: Switching of main FI in the past five years, February 2015
- Young males most likely to switch their main financial institution
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- 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
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- Figure 20: Reasons for switching main FI (top three reasons), February 2015
The Consumer – Loyalty Program Participation
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- Key points
- Travel rewards top the list of Canada’s most popular loyalty programs
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- Figure 21: Types of loyalty programs participated in the past year, February 2015
- Females have a higher participation rate across most programs
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- Figure 22: Loyalty participation by gender, February 2015
- Quebecers have a lower participation rate in loyalty programs
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- Figure 23: Loyalty program participation (any), by region, February 2015
- Some 56% of Canadians participate in three or more loyalty programs
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- Figure 24: Repertoire analysis of participation in loyalty programs, February 2015
- Key Driver Analysis
- Methodology
- Receiving special status drives leisure/entertainment program participation
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- Figure 25: Key drivers of Loyalty Program Participation, February 2015
The Consumer – Most Important Loyalty Program Features
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- Key points
- Convenience, cashback and immediate discounts rated as the most important features of a loyalty program
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- Figure 26: Most important features of a loyalty/rewards program (top five), February 2015
- Status and better service appeal more to men
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- 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
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- Figure 28: Differences in feature preferences between low and high income earners, February 2015
- Older Canadians place a higher value on convenient reward redemption
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- Figure 29: Differences in feature preferences, by age, February 2015
The Consumer – Attitudes towards Loyalty
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- Key points
- Summary of Attitudes
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- Figure 30: Summary of attitudes towards loyalty, February 2015
- Females aged 35-54 are most likely to be strategic shoppers influenced by loyalty programs
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- 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
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- 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
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- Figure 33: Attitudes relating to value and fairness, February 2015
The Consumer – Chinese Canadians and Loyalty
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- Key points
- Chinese Canadians have a higher membership rate across most loyalty programs
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- 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
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- 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
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- Figure 36: Agreement with loyalty attitudes, Chinese Canadians vs overall population, February 2015
The Consumer – LGBT Canadians and Loyalty
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- Key points
- LGBT customers have a higher propensity to switch their main financial institution
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- 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
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- Figure 38: Participation in loyalty programs, LGBT Canadians vs overall population, February 2015
- LGBT customers are less trustful of the financial services industry
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- Figure 39: Agreement with select attitudes towards loyalty, LGBT Canadians vs overall population, February 2015
The Consumer – Target Groups
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- Key points
- Three target groups
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- Figure 40: Target groups, February 2015
- Disengaged (38%)
- Cynics (32%)
- Traditionalists (30%)
Appendix – Key Driver Analysis
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- Interpretation of results
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- Figure 41: Credit or debit rewards program participated in the past year - key driver output, February 2015
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- 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
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