A few bloggers recently have been writing on BMO in various capacities and a friend had asked me my opinion on the company’s current initiative involving Air Miles and what my view might be on that strategic tactic: http://tinyurl.com/344t5t
One of the most successful customer loyalty programs ever initiated can arguably be Air Miles. Almost every other successful loyalty program created has been modelled after Air Miles. Any marketing executive, senior management or creative strategic minds of AllianceData have been sought after feverishly whenever they’ve left positions at the company. The development of the Shoppers Optimum Point Plan came about when SC acquired one such prospect.
The demographic information of participants is also some of the most lucrative in the business and many companies, including PG, JNJ & other large consumer staples, follow the purchasing trends of members in order to price-target products and strengthen brand loyalty. These companies are willing to pay top dollar in order to accurately forecast customer traffic patterns, buying habits, brand insight and participate actively in on going incentive offerings that Air Miles initiates from time to time.
– 100+ brand name sponsors
– Members can redeem over 800 different rewards
– Strategic allicance/relationship with both Mastercard & American Express
– Offer specialty services for companies developing targeted customer loyalty, customer management & sales promotions.
– Members receive statements, special incentives, newsletters & magazines with targeted mailings/promotions for sponsor companies.
– Started in 1991 with the national launch in 1992 – BMO was the first sponsor company to sign on
– Currently over 9 Million active collector accounts
– 4.4 Million redemptions fulfilled annually
– Constant contact with members – 15,000 calls received daily
Why might it matter?
– BMO most likely will have assistance from Air Miles in setting up marketing initiatives & contacting active customers to utilize new offer
– Great for a company currently struggling to attract & retain retail customers
– Encourages repeat business for other banking products
– Last quarter market share slid from 12.44% to 11.84%
– Debit card usage by women alone, since 2003, has grown from between 20-43% on average.
– 77% of women have primary or shared financial decision-making in the household