Jeff Berry
Research Director, COLLOQUY

More than one-third of Canadian consumers can’t identify which level they belong to in their favourite loyalty programs. Many Canadians are also unsure of the benefits and perks that the level of the loyalty programs offer.

In addition to knowledge (or lack thereof), location and income are also factors for Canadian members of rewards programs. People living in the western regions of Canada are more confident of the features of their loyalty program levels compared to Canadians in the east. 

These facts are among findings of a COLLOQUY survey of more than 1,500 Canadians who belong to loyalty programs.

Income affects your engagement

Income plays a role in how aspirational Canadians are in loyalty programs. Of those making less than $50,000 a year, slightly fewer than half (49 percent) have never made it out of the lowest level of a loyalty program.  As income goes up, that percentage goes down. 

Of those making between $50,000 and $99,000, 39 percent say they have only been in the lowest level of a loyalty program, and that percentage drops to 37 when looking at those making more than $100,000 a year.

Canadians in the higher levels of loyalty programs are the most likely to feel like their status accurately reflects their engagement in the program. When presented with the statement “my current status accurately rewards me for my level of participation,” these were the responses:

62 percent overall said yes

84 percent of highest level members said yes 

73 percent of middle level members said yes

59 percent of lowest level members said yes

Perks for those that use it more

Canadians are comfortable with the idea of businesses giving special treatment to their best customers. Seventy percent of Canadians say it’s okay for a company to give preferential treatment to customers who spend more money. The research also found that two-thirds of the respondents thought that it was fair for customers to buy their way into a higher level of a loyalty program.

The survey also endeavoured to find out how much confidence Canadians had in their knowledge of the benefits of the level of their loyalty program they were currently in as well as the benefits of the levels above them. 

Loyalty literacy

British Columbia had the highest percentage (51 percent) of people confident in what they knew about the perks of their current level of their loyalty program. Sixty-seven percent of the people in BC said they were confident in their knowledge of the benefits of the level above them, just behind the 68 percent feeling that way in Manitoba and Saskatchewan.

Customers could get more out of their favourite loyalty programs by doing research to learn more about the loyalty level they are in and what it takes to advance to the next level. But marketers could do a better job of educating their loyal Canadian customers, to ensure those customers have the knowledge they need to enjoy the full benefits and perks of those loyalty programs.