Confronted with decades-high inflation, Canadians are altering how usually they store, the place they store, and what they purchase as they observe offers and lean into loyalty packages. But manufacturers and loyalty packages have been sluggish to reply, acknowledging the shift with options that empower shoppers.
“In a difficult financial local weather marked by aware spending, retailers want to supply all the further worth that they will,” says Shawn Stewart, President at AIR MILES. “We all know that Canadians are members of greater than 13 loyalty packages and lively in seven. As a substitute of preventing towards that actuality, we’re redesigning AIR MILES as an open and versatile program, creating options that may layer on prime of current retailer packages, present alternatives for CPG manufacturers, and provides Canadians the chance to earn wherever they store for groceries.”
The altering panorama of shopper behaviour
AIR MILES’ analysis has discovered that buyers overwhelmingly favour retailers that provide loyalty packages 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 retailers have given option to smaller, extra frequent baskets at a number of places, combined with bigger retailers at warehouse golf equipment or superstores. Enter AIR MILES Receipts, a receipt-scanning program launched nationally in November that provides a contemporary approach for Canadians to earn rewards on on a regular basis gadgets bought in-store at most main grocers. Collectors examine the AIR MILES app for out there provides, store for eligible merchandise, and scan a photograph of their receipts utilizing Optical Recognition Know-how throughout the app, incomes Bonus Miles on qualifying purchases.
For collectors, one of the best half is that you may store wherever you need, use your retailer-specific loyalty packages to earn rewards in your purchases, after which layer AIR MILES Receipts on prime to earn Bonus Miles, successfully reaping the rewards twice on a single basket. This characteristic amplifies collectors’ incomes potential on the identical spend. Precisely the sort of flexibility and financial savings maximization Canadians are looking for.
Methods for manufacturers to spice up their enterprise targets
Whereas main grocers profit from weekly promotions that drive collectors in-store, accomplice CPG manufacturers take pleasure in a spread of advantages not sometimes afforded to them:
- Enhance advertising effectiveness: With firms repeatedly on the lookout for alternatives to drive vertical development, data-driven advertising for CPGs and types at scale not solely delivers enhanced gross sales outcomes but in addition improves advertising effectivity. Via AIR MILES Receipts and its data-driven skills, companions can higher perceive the affect 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. Manufacturers 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: Traditionally, buyer loyalty is tough for CPGs and types to gauge. Producers usually 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 a whole bunch and 1000’s of manufacturers and merchandise being bought at any given time, it’s turning into more and more necessary for CPG manufacturers to drill all the way 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 plans, and future product innovation.
- Purchase new prospects: Buyer acquisition is commonly some of the costly parts of a advertising technique. CPGs and types can use the AIR MILES community and AIR MILES Receipts to establish prospects who’ve a excessive probability of buying their merchandise however aren’t doing so at present.
- Co-branded advertising partnerships: Many firms trying to attain a bigger buyer base and improve their worth proposition are turning to co-branding in product advertising. With AIR MILES Receipts’ Basket Interplay Report, manufacturers can faucet new markets and develop 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 provides that incentivize established shopper behaviour.
“Right here at AIR MILES, we delight ourselves on following shopper behaviour and creating methods for Canadians to earn and redeem Miles that match with their multidimensional lives,” says Stewart. “We’re working to rework AIR MILES into an open and versatile program that may meet the wants of every particular person collector, model, and enterprise – in the end enhancing profitability and general aggressive benefit,” says Stewart.
