Canadians love their loyalty programs.
The relationship started in 1958 with the introduction of Canadian Tire money, and loyalty-program love has blossomed over the decades. (We’ve addressed the country’s loyalty to – well, ‘loyalty’ – in earlier posts.)
Studies identifying the characteristics of Canadian loyalty program members have found that:
- Women are more active than men in loyalty programs,
- Millennials are most interested in loyalty programs, averaging almost 16 memberships per person,
- 48% of reward users aged 18-24 prefer digital to physical loyalty cards,
- 51% of Canadians prefer to access their loyalty programs through their mobile devices,
- Loyalty reward usage is 28% higher among affluent Canadians, and
- Although the average Canadian is a member of 14 loyalty programs, only half are used regularly.
Loyalty programs enable retailers to achieve positive business outcomes, such as customer retention, increased sales, and consumer behaviour data. But there must also be benefits for members. Canadians like programs that offer points on transactions and free products, save time, improve members’ lives, and create an emotional connection with that program. To that end, a well-designed program should allow members to:
- Earn and redeem points, in-store and online,
- Receive good – and consistent – customer service, and
- Have an identical user experience across multiple platforms.
The best customer loyalty programs in Canada include cards such as PC Optimum (where shoppers can earn points at Loblaws-owned grocery stores, pharmacy chains, and gas stations), Aeroplan, and Indigo’s Plum Rewards. (The Government of Canada’s website has information outlining the different types of rewards programs for the country’s consumers.)
Although there are many things to consider when building a program, brands entering the Canadian marketplace may want to use a well-structured loyalty program as a means of attracting – and keeping – long-term customers.cting – and keeping – long-term customers.
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