In 2016, Air Miles, run by LoyaltyOne, attempted to expire points and caused a huge public outcry when they allegedly reduced reward offerings, increased points required for some travel and failed to adequately staff support lines to serve customers in need. With an estimated $16 billion in points unredeemed by Canadian collectors, rewards programs seek ways to lessen their risk. Changing program termsĪnother important thing to remember here is that points on a card are not akin to money in the bank. Consumers should obviously use passwords to protect data, but when a program is hacked, the onus is ultimately on you to check credit reports and card balances to ensure you don't fall victim to fraud.
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Security issues have hit several loyalty programs including Air Miles, and PC Points customers have been asked to reset their passwords after a breach resulted in a theft of points. A big concern is what happens when systems fail, data is breached and hackers have access to your credit card, home address and even your points balance. Through loyalty programs, retailers know what you like and how much you'll spend because you told them. Not only do they have insight into your shopping habits, but they can target your every desire through personalized newsletters, custom deals on the stuff you buy and even bonuses on your birthday. By scanning your card at checkout, retailers collect considerable information about you and can use that data for profit. Enjoy your cookie.ĭuration 1:56 CBC's Renee Filippone on the launch of the new rewards programīut the benefits for businesses go beyond increased sales. Expecting food after hearing a ringing bell is learned behaviour.
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Giving you a free cookie for being a good consumer is not unlike Pavlov's salivating dogs. And hey, if reaching the next rewards level is achievable and feels good, science says you'll be back for more. By rewarding increased spending on a featured deal with bonus points, loyalty programs reinforce the shopping habits that increase a retailer's bottom line, not yours. Make no mistake, you are being programmed to shop, spend and redeem on the retailer's schedule. It's no wonder cashiers are required to push points programs at checkout: loyalty card members generate 12 to 18 per cent more revenue for retailers than non-members, Accenture Research found.īut the true value of any loyalty program lies in its ability to drive changes in consumer behaviour.
Persuasive Perks: The World of Loyalty ProgramsĪ 2016 Bond Loyalty Report found that 66 per cent of consumers will increase the amount they spend to either maximize points or to reach the next reward level. Users complain of issues after launch of PC Optimum rewards program But whether the deal is real or perceived, Canadians don't want to miss out and will spend more money today hoping to be rewarded later. Given my past shopping history, I was once targeted to buy Pampers, despite the fact my kid is toilet-trained. For example, the old Shoppers Optimum program constantly emailed members offers of 8,000 bonus points or 20X loyalty points for spending $75 or more on promoted brands and items. While loyalty programs can reward regular customers with product discounts and free goodies - everything from basic food to exotic travel - they can also persuade you to buy stuff you don't need. If you're not careful, it's easy to get duped into spending more for the thrill of getting something for free. When you consider the real cost of our increasing debt burden, our urge to splurge and the risk of points deflation, Canadians should be wary of loyalty programs - not enticed by them. With bloggers, social influencers and mainstream media all dissecting ways to game the PC Optimum program to collect the most points for the least bank, maybe it's time to rethink who really benefits from loyalty programs. That's a 35 per cent increase since 2015. Canadians hold an average of 13.3 loyalty memberships per household, or 175 million memberships nationwide.
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rewards programs - Shoppers Optimum and PC plus - into the new PC Optimum loyalty program, competition has increased not just for your money, but for your loyalty toward collecting points, too.Ī recent COLLOQUY Loyalty Census study found that we're addicted to hoarding points in exchange for free stuff. And now with the merging of two Loblaw Ltd.
There are Air Miles, Canadian Tire Rewards, Aeroplan, HBC Rewards. Try shopping at any major store without being asked for your loyalty card or rewards app at checkout - you can't.
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