Canada Loyalty Programs Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q2 2024 Update

According to PayNXT360’s, loyalty market in the country is expected to grow by 10.0% on annual basis to reach US$5,092.3 million in 2024.

In value terms, the loyalty market in the country has recorded a CAGR of 11.6% during 2019–2023.The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 8.7% during 2024-2028. Loyalty market in the country will increase from US$4,628.7 million in 2023 to reach US$7,097.3 million by 2028.

The loyalty program landscape in Canada is characterized by rapid evolution, driven by technological advancements, changing consumer preferences, and regulatory shifts. Companies increasingly adopt personalized and technology-integrated solutions while exploring cashback options to enhance customer engagement. The launch of innovative programs by major players signifies a competitive market focused on delivering value to consumers.

As the regulatory environment becomes more stringent, businesses must navigate these changes carefully to ensure compliance and maintain consumer trust. The future of loyalty programs in Canada appears promising, with significant growth potential as firms continue to innovate and adapt to the needs of their customer base. Senior executives must monitor these trends, ensuring their loyalty strategies align with market dynamics and regulatory requirements to achieve sustained success.

Overview of Loyalty Program Trends

The loyalty program landscape in Canada is rapidly evolving, reflecting changing consumer behaviours and market dynamics. Key trends influencing this market include:

• Increased Participation: Loyalty programs have become integral to the shopping experience for many Canadians, with consumers actively engaging in multiple programs. This trend is driven by the desire for rewards and the need for value, particularly in a competitive market.

• Shift Towards Personalization: Brands increasingly leverage data analytics to create personalized loyalty experiences. Tailored rewards and targeted communications enhance customer satisfaction and foster deeper connections, making personalization a key focus for loyalty programs.

• Technological Integration: Integrating mobile technology and digital platforms is transforming loyalty programs. Consumers can easily track their rewards, receive personalized offers, and redeem benefits through mobile apps, enhancing convenience and engagement.

• Emergence of Premium Programs: There is a growing trend towards premium loyalty programs that offer enhanced benefits for a subscription fee. These programs cater to consumers willing to pay for exclusive rewards, early access to sales, and other perks, reflecting a shift in consumer expectations.

These trends indicate a shift towards more innovative and engaging loyalty programs that resonate with Canadian consumers' diverse preferences.

New Loyalty Programs Launched in the Country

Recent months have seen the introduction of several innovative loyalty programs across Canada, reflecting strategic responses to consumer demands:

• Shoppers Drug Mart PC Optimum Program: The PC Optimum program has undergone enhancements. Members can now earn points on a wider range of products and redeem them for personalized offers, catering to consumer preferences for flexibility and value.

• Loblaws’ Loyalty Initiatives: Loblaws has introduced new features in its loyalty program, focusing on personalized rewards and partnerships with various retailers. The program allows customers to earn points on everyday purchases.

• Hudson's Bay Rewards Program: Hudson's Bay has revamped its loyalty program to offer more personalized experiences and exclusive promotions, enhancing customer engagement and retention.

These initiatives reflect a competitive landscape where businesses are continuously adapting their loyalty strategies to meet the diverse needs of Canadian consumers.

Overview of Cashback Loyalty Program Trend

Cashback loyalty programs are gaining traction as a preferred alternative to traditional point-based systems in Canada. Key aspects of this trend include:

• Immediate Financial Benefits: Cashback programs provide instant rewards, appealing to consumers who prefer immediate gratification over delayed rewards associated with points. This immediacy enhances the attractiveness of these programs.

• Enhanced Value Perception: As consumers become more price-sensitive, cashback offers are viewed as a way to enhance perceived value, particularly in competitive sectors like retail and e-commerce.

• Integration with Digital Payment Solutions: The rise of digital wallets and payment platforms has facilitated the implementation of cashback programs, allowing seamless transactions and easy reward redemption.

• Market Differentiation: Companies utilize cashback programs to differentiate themselves in a crowded market, driving customer acquisition and retention through attractive offers.

This trend underscores a shift towards more flexible and consumer-friendly loyalty solutions catering to Canadian shoppers' evolving preferences.

Recent Regulatory Changes Impacting Loyalty Programs

The regulatory environment surrounding loyalty programs in Canada is evolving, with significant implications for businesses:

• Data Protection Regulations: Stricter regulations regarding consumer data collection and usage require loyalty programs to adopt transparent, permission-based models. Compliance with these regulations is essential for maintaining consumer trust.

• Consumer Protection Laws: New laws safeguarding consumer rights may necessitate clearer communication regarding loyalty program terms and conditions, enhancing transparency and fairness.

• Competition Authority Scrutiny: Regulatory bodies are increasingly scrutinizing loyalty programs to ensure they do not create unfair market advantages or limit competition. This scrutiny prompts businesses to reassess their loyalty strategies to ensure compliance.

These regulatory changes compel businesses to adapt their loyalty programs, ensuring compliance while maintaining customer engagement and satisfaction. Companies must align their loyalty strategies with legal requirements while delivering value to consumers.

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities. • Gain insights into the Canada loyalty spend market: The report provides a comprehensive overview of the Canada loyalty spend market, including market size, growth drivers, and trends. This information can help businesses to make informed decisions about their loyalty program strategies.

• Benchmark your business against competitors: The report provides a competitive analysis of the Canada loyalty spend market, which can help businesses to identify their strengths and weaknesses relative to their competitors. This information can help businesses to improve their loyalty program strategies and gain a competitive advantage.

• Stay up-to-date on the latest trends in the loyalty spend market: The report provides an overview of the latest trends in the loyalty spend market, such as the growing popularity of mobile-based loyalty programs and the increasing awareness of the benefits of loyalty programs among consumers. This information can help businesses to stay ahead of the competition and improve their loyalty program strategies.

• Make informed decisions about your loyalty program: The report provides a comprehensive overview of the factors to consider when developing a loyalty program, such as the target audience, the rewards and benefits, and the marketing and communication strategy. This information can help businesses to develop a loyalty program that is effective and successful. This report provides in-depth, data-centric analysis of loyalty programs in Canada. Below is a summary of key market segments:

• Canada Retail Sector Spend Value Trend Analysis

--Ecommerce Spend

--POS Spend

Canada Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in Canada

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

--Loyalty Schemes

--Loyalty Platforms

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type

--Points programs

--Tier-based programs

--Mission-driven programs

--Spend-based programs

--Gaming programs

--Free perks programs

--Subscription programs

--Community programs

--Refer a friend program

--Paid programs

--Cashback programs

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Channel

--In-Store

--Online

--Mobile

Canada Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

--Seller Driven

--Payment Instrument Driven

--Others

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors

--Retail

--Financial Services

--Healthcare & Wellness

--Restaurants & Food Delivery

--Travel & Hospitality (Cabs, Hotels, Airlines)

--Telecoms

--Media & Entertainment

--Others

• Canada Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online

--Retail

--Financial Services

--Healthcare & Wellness

--Restaurants & Food Delivery

--Travel & Hospitality (Cabs, Hotels, Airlines)

--Telecoms

--Media & Entertainment

--Others

• Canada Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store

--Retail

--Financial Services

--Healthcare & Wellness

--Restaurants & Food Delivery

--Travel & Hospitality (Cabs, Hotels, Airlines)

--Telecoms

--Media & Entertainment

--Others

•Canada Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App

--Retail

--Financial Services

--Healthcare & Wellness

--Restaurants & Food Delivery

--Travel & Hospitality (Cabs, Hotels, Airlines)

--Telecoms

--Media & Entertainment

--Others

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Retail

--Diversified Retailers

--Department Stores

--Specialty Stores

--Clothing, Footwear & Accessories

--Toy & Hobby Shops

--Supermarket and Convenience Store

--Home Merchandise

--Other

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

--Card Based Access

--Digital Access

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

--B2C Consumers

--B2B Consumers

• Canada Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

--Free

--Free + Premium

--Premium

• Canada Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case

--Analytics and AI Driven

--Management Platform

• Canada Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

--In House

--Third Party Vendor

• Canada Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

--Cloud

--On-Premise

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

--Software

--Services

• Canada Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms

--Custom Built Platform

--Off the Shelf Platform

• Canada Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

--By Age Group

--By Income Level

--By Gender