Loyalty Reset: Canadian Retailers Must Embrace Generosity to Win Over Demanding Consumers

Montreal, QC – Canadian retailers are facing a loyalty crisis. A new report from consulting firm Adviso reveals that simply offering points and discounts is no longer enough to win over increasingly demanding consumers. The annual LoyalT study, released today, highlights a significant shift in consumer expectations, demanding retailers prioritize personalized experiences, genuine value, and – crucially – generosity in their loyalty programs.

For years, retailers have focused on accumulating members in loyalty programs, often overlooking the crucial element of active engagement. But the LoyalT study paints a clear picture: Canadians are members of an average of 10-12 loyalty programs, yet actively use only 3-5. This suggests a saturation point has been reached, and simply having a program isn’t enough. What’s lacking, experts say, is a genuine connection and a feeling of being truly rewarded.

"Consumers are becoming savvier and more discerning," says an industry analyst at a major retail consulting firm. "They're tired of being treated like just another number. They want brands to understand their needs and preferences, and to offer rewards that are actually meaningful to them."

The Rise of ‘Generosity’ as a Key Differentiator

The LoyalT study introduces a new metric – the ‘Generosity Score’ – to assess the true value of loyalty programs. This score isn’t simply about the size of discounts or the number of points earned; it considers the ease of redemption, the relevance of rewards, and the overall feeling of being appreciated. Programs scoring highest aren't necessarily those offering the most lavish rewards, but those delivering a seamless, personalized experience.

Adviso’s research found that programs perceived as ‘generous’ – such as Burger King’s Royal Perks and Panera Bread’s My Panera – consistently outperform competitors in terms of customer satisfaction and engagement. These programs emphasize simplicity, immediate gratification, and personalized offers, fostering a sense of genuine appreciation among members.

"It's not about giving away the farm," explains a retail strategist who reviewed the report. "It's about being thoughtful and strategic with your rewards. Understanding what your customers truly value and offering rewards that align with their needs and preferences."

Gen Z Demands a Modern Loyalty Experience

The shift in consumer expectations is particularly pronounced among Gen Z, who are quickly becoming a dominant force in the retail landscape. This digitally native generation values authenticity, personalization, and social responsibility, and they’re quick to dismiss brands that don’t align with their values.

"Gen Z wants more than just discounts; they want experiences," notes a marketing expert specializing in youth engagement. “They want brands to connect with them on a personal level, to understand their lifestyle, and to offer rewards that are relevant to their interests.”

The LoyalT study confirms these findings, highlighting the importance of mobile-first experiences, gamification, and social media integration in attracting and engaging Gen Z consumers. Loyalty programs targeting this demographic must be seamless, interactive, and aligned with their values.

“They’re looking for brands that understand their values and aren’t afraid to take a stand on important issues,” adds the marketing expert. “If you want to win over Gen Z, you need to be authentic, transparent, and socially responsible.”

Beyond Points: The Future of Loyalty

The LoyalT study signals a fundamental shift in the landscape of customer loyalty. Retailers can no longer rely on simply accumulating members and offering generic discounts. To thrive in the modern marketplace, they must prioritize personalization, generosity, and emotional connection.

“The future of loyalty is about building relationships, not just transactions,” says a retail consultant. “It’s about understanding your customers’ needs and preferences, and offering rewards that are truly meaningful to them.”

This requires a significant investment in data analytics, customer relationship management (CRM) systems, and employee training. Retailers must be able to collect and analyze customer data, personalize offers, and deliver seamless, omnichannel experiences.

The LoyalT study also highlights the importance of measuring the right metrics. Traditional metrics such as membership growth and points redeemed are no longer sufficient. Retailers must focus on metrics such as customer lifetime value, Net Promoter Score (NPS), and customer engagement.

Ultimately, the LoyalT study serves as a wake-up call for Canadian retailers. The time for incremental improvements is over. To win over demanding consumers and build lasting loyalty, they must embrace a new era of generosity, personalization, and emotional connection. The future of retail isn’t about having loyalty programs, it’s about earning loyalty.

Key Takeaways from the LoyalT Study:

• Generosity Matters: Programs perceived as generous consistently outperform competitors.
• Personalization is Key: Customers crave personalized offers and experiences.
• Gen Z Demands More: This generation values authenticity, social responsibility, and mobile-first experiences.
• Data is Crucial: Retailers must collect and analyze customer data to personalize offers and improve engagement.
• Beyond Points: Traditional metrics are no longer sufficient. Focus on customer lifetime value, NPS, and engagement.