Our new report, The Tipping Point: Inside Canada's Changing Loyalty Landscape, reveals that 54% of Canadians are members of three to five loyalty programs, pointing to substantial opportunities for brands willing to cater to the unique preferences of Canadian consumers.
A Dynamic, Value-Driven Loyalty Market
Canadians are value-conscious shoppers who favour price and cost-saving rewards. While 37% report spending more frequently with brands to earn travel rewards, and 40% engage more with digital platforms because of loyalty programs, only 22% feel these programs reflect an understanding of their needs. To encourage spending and deepen engagement, loyalty programs in Canada must clearly articulate the tangible benefits of their rewards, which are currently missing among many programs.
Rewards That Matter to Canadians
Saving money on travel is the most valued feature of travel loyalty programs for 45% of Canadians, while 20% place value on earning and redeeming points for everyday purchases like groceries, emphasizing the importance of balancing aspirational travel rewards with practical, day-to-day benefits.
Sustainability is another key factor, particularly for Gen Z and families. Sixty percent of Canadians, including 85% of Gen Z and 69% of households with children, say they would prefer loyalty programs with a sustainability focus. High-income earners share this sentiment, with two-thirds citing sustainability initiatives as an important consideration in loyalty program selection.
Canadian brands integrating sustainability into their rewards strategies report tangible results: nearly one-third have seen higher traveller spending on sustainable options, while approximately 30% attribute sustainable offerings to reduced churn, stronger engagement, and increased incremental revenue.
Addressing the UX and Technology Gap
User experience remains a critical yet underperforming aspect of loyalty programs. While 96% of loyalty professionals say their programs include a travel booking website, only 21% of Canadian consumers know about or use this feature. Frustrations with user experience are widespread, with 58% of consumers citing issues such as unclear earning and redemption rules, a fragmented booking experience, redirects to external payment sites, and slow or clunky websites.
Personalization is another area where programs fall short. Although 52% of Canadians—and 78% of Gen Z—consider personalized offers extremely or very important, only 8% report receiving tailored offers between booking their trip and the day of travel. Recognizing this shortcoming, more industry professionals are investing in AI (26%) and personalization tools (17%) to better meet members’ expectations.
How Brands Can Win in Canada’s Loyalty Market
To capture the full potential of loyalty programs across the Canadian market, brands should consider the following:
- Making booking straightforward and eliminating common user frustrations
- Leveraging AI to offer personalized rewards that meet consumer expectations
- Incorporating sustainability-focused options and rewards to appeal to Gen Z, parents, and high-earners
- Focusing on practical rewards that blend travel options and everyday benefits
Investing in adaptive loyalty technology that integrates seamlessly into existing systems can help brands drive measurable growth and establish a competitive edge in Canada’s consolidated loyalty market.
For deeper insights into the Canadian loyalty market, download The Tipping Point: Inside Canada’s Changing Loyalty Landscape or our companion report that examines trends across the U.S. loyalty market in The Tipping Point: How U.S. Travel Loyalty is Evolving—A Three-Year Perspective.
Tags: Canadian loyalty market, iSeatz
