Why Rewards Programs Work: The Business Case for Keeping Customers Engaged
Canadians Love Rewards Programs, and Businesses See the Results
Rewards programs have become a vital part of retail and service strategy in Canada. A recent study found that 97% of Canadians belong to at least one rewards or loyalty program. Nearly one in three consumers adjust their shopping habits to earn more points. These aren’t just passive members; they actively change how, when, and where they shop to benefit from.
More Rewards is designed to help businesses take full advantage of this trend. With a wide reach and high engagement, the program supports consistent customer growth and retention across many industries.
Higher Spending and More Frequent Visits
Members of rewards programs consistently spend more per visit and shop more often. In Canadian case studies, loyalty customers increased their cart size by up to 75% at mid-frequency retailers. In the automotive sector, the increase reached 92% during a targeted promotion.
Loyalty members don’t just spend more; they also return more frequently. In one retail category, member transactions were 118% higher than those of non-members. These results show how a rewards program creates lasting customer habits that drive revenue.
Smart Value Without Sacrificing Margin
Instead of offering discounts, many businesses use rewards points as an incentive to close sales. This approach not only provides value to the customer but also helps businesses protect their margins. For example, one partner replaced a 15% discount with 3x rewards points. The result was a 50% lower cost to the business and a 30% increase in merchandise sold.
This strategy preserves your brand’s value while still motivating customers to act. It’s a win for both sides.
Shaping Customer Behaviour
The real power of a rewards program lies in its ability to influence behaviour. According to studies done in 2024, 36% of Canadians concentrate more of their purchases with businesses that offer points. Another 32% say they visit these businesses more often because of the program.
For example, shoppers may add extra items to their basket to hit a points threshold. Others may choose to buy bundled items that offer bonus rewards. Over time, these habits increase your average transaction value and customer lifetime value.
Better Experience, Greater Engagement
Instead of offering discounts, many businesses use rewards points as an incentive to close sales. This approach not only provides value to the customer but also helps businesses protect their margins. For example, one partner replaced a 15% discount with 3x rewards points. The result was a 50% lower cost to the business and a 30% increase in merchandise sold.
This strategy preserves your brand’s value while still motivating customers to act. It’s a win for both sides.
Make Rewards Part of Your Growth Strategy
Whether you are trying to increase customer retention, improve margins, or drive more visits, a well-built rewards program can deliver real impact. Programs like More Rewards help businesses attract new customers and keep existing ones coming back.
Start using rewards to build stronger relationships, create lasting habits, and grow your business with confidence.