How Canadian Tire Is Harnessing Data From 100 Million Loyalty Transactions
On the heels of Canadian Tire's first anniversary of its Triangle Rewards program, the retailer reported more than 50% of Mark's, SportChek and Canadian Tire Retail (CTR) customers are using the loyalty program, accounting for 100 million transactions over the past year. The retailer also now has more than 3.5 million contactable members in the program, through email signup.
Triangle Rewards is a no fee loyalty program that enables members to collect and redeem electronic Canadian Tire Money at Canadian Tire, Sport Chek, Atmosphere and participating Marks/L'Équipeur stores, and collect on fuel purchases at participating locations. The loyalty program is the evolution of Canadian Tire's iconic loyalty program, Canadian Tire Money, which debuted in 1958.
The recent 100 million transactions through the updated program are allowing Canadian Tire to gather insight on millions of customers and product combinations, helping the company develop a single view of its customers.
“Triangle Rewards is enabling us to take our understanding of the customers to the next level, curating experience based on their needs and preferences,” said Allan MacDonald, EVP, Retail on a recent earnings call.
For example, the retailer now knows that on average about 20% of its membership comes back to CTR for tire changeover in the following season, when they come back they spend about $300 on a repair order, and a third of them go into the store and spend $50 in the store.
“So you can start to build a story and an audience and there's lots of opportunity for us to work on conversion as you can imagine with that type of data,” explained Greg Hicks, president, CTR.
Also, for the first time, Canadian Tire has been able to identify and target a group of customers it calls “high value customers,” according MacDonald.
High value customers represent 25% of CTR's active members and 62% of the sales associated with Triangle Rewards program. According to the retailer, 71% of its high value customers shop at least two of its banners and spend almost five times more than Canadian Tire’s other customers.
MacDonald said the company is using its data and the value of the Triangle marketplace to retain and move customers upstream into the high value category.
“We're focused on getting this data to all of our company and into the hands of our dealers,” MacDonald noted. “Localization will move the program to a whole new level as our dealers start to use the data to connect with customers in ways we have never done before. It's a transformative year for the company.”
Canadian Tire has been making a flurry of investments, growing from 50 people working its website, search engines and digital properties to around 160 people, and investing in marketing analytics and personalization, including analyzing the data that's coming in from Triangle Rewards.
MacDonald noted creating as many high value customers as the company can is a priority, when utilizing the data from the rewards program.
“The high value customers are really important to retain, but the near high value customers are important to identify and understand how you move them into the high value category.”
To do this, the company has been executing strategies, such as its Vermont Castings barbecue brand launch, to move customers into the high value category.
“It’s not about growing the channel, it's about growing the customer,” MacDonald noted at the end of the call.