Canadians love loyalty, but they’re most loyal to a deal – CB
Faced with decades-high inflation, Canadians are altering how typically they store, the place they store, and what they purchase as they comply with offers and lean into loyalty applications. Yet manufacturers and loyalty applications have been gradual to reply, acknowledging the shift with options that empower customers.
“In a challenging economic climate marked by mindful spending, retailers need to offer all of the extra value that they can,” says Shawn Stewart, President at AIR MILES. “We know that Canadians are members of more than 13 loyalty programs and active in seven. Instead of fighting against that reality, we’re redesigning AIR MILES as an open and flexible program, creating solutions that can layer on top of existing retailer programs, provide opportunities for CPG brands, and give Canadians the opportunity to earn wherever they shop for groceries.”
The altering panorama of shopper behaviour
AIR MILES’ analysis has discovered that buyers overwhelmingly favour retailers that provide loyalty applications over ones that don’t: 82 per cent mentioned they had been extra prone to store at a retailer with a loyalty program, 69 per cent mentioned their retailer of selection was influenced by whether or not they might earn loyalty factors, and 66 per cent will modify the place and once they make a purchase order to maximise their factors.
Nowhere is that this extra evident than the grocery class, the place single-banner loyalty and weekly outlets have given strategy to smaller, extra frequent baskets at a number of places, combined with bigger outlets at warehouse golf equipment or superstores. Enter AIR MILES Receipts, a receipt-scanning program launched nationally in November that gives a contemporary approach for Canadians to earn rewards on on a regular basis gadgets bought in-store at most main grocers. Collectors test the AIR MILES app for accessible gives, store for eligible merchandise, and scan a photograph of their receipts utilizing Optical Recognition Technology throughout the app, incomes Bonus Miles on qualifying purchases.
For collectors, one of the best half is that you would be able to store wherever you need, use your retailer-specific loyalty applications to earn rewards in your purchases, after which layer AIR MILES Receipts on high to earn Bonus Miles, successfully reaping the rewards twice on a single basket. This characteristic amplifies collectors’ incomes potential on the identical spend. Exactly the sort of flexibility and financial savings maximization Canadians are looking for.
Ways for manufacturers to spice up their business targets
While main grocers profit from weekly promotions that drive collectors in-store, accomplice CPG manufacturers take pleasure in a variety of advantages not usually afforded to them:
- Improve advertising and marketing effectiveness: With corporations constantly on the lookout for alternatives to drive vertical development, data-driven advertising and marketing for CPGs and types at scale not solely delivers enhanced gross sales outcomes but in addition improves advertising and marketing effectivity. Through AIR MILES Receipts and its data-driven talents, companions can higher perceive the impression that selling their merchandise is having to drive incremental gross sales—at main grocers nationwide vs a single banner/group of banners–thus enabling them to raised optimize future spend. Brands can analyze the effectiveness of promotions and campaigns, establish ranked SKUs in basket, and assess KPIs for product gross sales throughout all classes by Vendor.
- Drive buyer loyalty: Historically, buyer loyalty is troublesome for CPGs and types to gauge. Manufacturers typically ship their merchandise off to shops for retail gross sales, with little to no interplay going down between the model and their prospects. Since AIR MILES can attribute each receipt to a singular buyer, manufacturers can establish repeat purchasers and uncover behavioural developments that assist them uncover methods to encourage future repeat purchases. Insights additionally supply a complete perspective throughout a number of retailers, enabling a deeper understanding of brand name interplay and loyalty measurement.
- Uncover buyer insights: With tons of and 1000’s of manufacturers and merchandise being offered at any given time, it’s changing into more and more necessary for CPG manufacturers to drill right down to granular-level understanding of their buyer profiles. With AIR MILES Receipts, you get entry to highly effective behavioural and demographic insights to gas focused advertising and marketing plans, and future product innovation.
- Acquire new prospects: Customer acquisition is commonly some of the costly elements of a advertising and marketing technique. CPGs and types can use the AIR MILES community and AIR MILES Receipts to establish prospects who’ve a excessive chance of buying their merchandise however aren’t doing so immediately.
- Co-branded advertising and marketing partnerships: Many corporations trying to attain a bigger buyer base and improve their worth proposition are turning to co-branding in product advertising and marketing. With AIR MILES Receipts’ Basket Interaction Report, manufacturers can faucet new markets and broaden their attain by figuring out what different gadgets a buyer is placing into their basket when buying merchandise throughout their classes, and develop co-branded gives that incentivize established shopper behaviour.
“Here at AIR MILES, we pride ourselves on following consumer behaviour and creating ways for Canadians to earn and redeem Miles that fit with their multidimensional lives,” says Stewart. “We’re working to transform AIR MILES into an open and flexible program that can meet the needs of each individual collector, brand, and business – ultimately enhancing profitability and overall competitive advantage,” says Stewart.
