Aeroplan-LCBO partnership (announced August 2021)
#2
Join Date: Aug 2009
Location: YLW
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Posts: 4,309
Not sure if the LCBO needs a loyalty partner?
During the Pandemic the LCBO is doing very well. The lines outside the stores many times exceed those of grocery stores.
I am used to seeing the small grocery carts in these smaller stores, but in some locations, they have the larger size grocery carts, lol
Can't speak for everyone in Ontario and I am not passing judgement, but the LCBO appears to be doing fine. LCBO is an essential service and their products are compliments to just about everything people do in Ontario.
During the Pandemic the LCBO is doing very well. The lines outside the stores many times exceed those of grocery stores.
I am used to seeing the small grocery carts in these smaller stores, but in some locations, they have the larger size grocery carts, lol
Can't speak for everyone in Ontario and I am not passing judgement, but the LCBO appears to be doing fine. LCBO is an essential service and their products are compliments to just about everything people do in Ontario.
#5
Join Date: Aug 2013
Location: YVR - MILLS Waypoint (It's the third house on the left)
Programs: AC*SE100K, wood level status in various other programs
Posts: 6,232
Pretty similar here in BC.
BUT if I could encourage Legacy Liquor Store to sign up with Aeroplan, my rum purchases would help subsidize my travel. Would be very meta if it was travel to the eventual Secret Cove Do.
BUT if I could encourage Legacy Liquor Store to sign up with Aeroplan, my rum purchases would help subsidize my travel. Would be very meta if it was travel to the eventual Secret Cove Do.
#6
Join Date: Jun 2010
Location: YYG
Programs: airlines and hotels and rental cars - oh my!
Posts: 2,997
The loyalty aspect wasn't really focused on the LCBO per-se, but was something they could re-package and sell to their vendors through various shelf-level promotions ... no different than what happens in grocery promos. The bonus offers in particular appear to have been quite popular with many of the LCBO vendors, who did multiple promotions each year ... that wouldn't have kept happening if no one was making money at it.
That being the case, I would not be at all surprised to see LCBO launch another venture to replace Air Miles. It's not about ensuring loyalty to a monopoly, it's about capturing a greater share of their vendor's total marketing spend.
That being the case, I would not be at all surprised to see LCBO launch another venture to replace Air Miles. It's not about ensuring loyalty to a monopoly, it's about capturing a greater share of their vendor's total marketing spend.
Last edited by Symmetre; Mar 10, 2021 at 11:25 am
#7
Join Date: May 2020
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Posts: 878
That was my assumption as well. The way loyalty programs are heading, everyone wants their own to have access to the data of the purchasing habits of their customers. LCBO is investing heavily into new tech initiatives from what I read in one of their reports.
#9
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#10
Join Date: Mar 2020
Programs: AC 75k
Posts: 704
Folks saying that the Aeroplan SB alliance is "Meh" are ignoring the overwhelming majority of subscribers to any loyalty program who you won't see on a board like this, and accumulate rewards over decades, not years.
#11
Join Date: Jun 2010
Location: YYG
Programs: airlines and hotels and rental cars - oh my!
Posts: 2,997
That said, it still has to generate revenue and that's still the challenge to brand-specific programs, especially when one considers the considerable cash reserves that need to be held against loyalty liabilities. It's one thing to sit on a pile of money in this climate, with record-low interest rates. But when rates are higher, opportunity costs become a serious challenge to loyalty program revenues. Air Miles made a lot of sense when it was launched, but that was at a time when data management required serious investment and interest rates were significantly higher than they are now, making it far more difficult for companies to justify holding huge cash reserves that could be out earning money otherwise.
If and when overnight bank rates rise into the mid single-digit range, I would expect some of these brand-specific programs to disappear, and coalition programs like Air Miles to become more attractive to merchants simply because they would be relieved of the obligation to maintain that substantial cash reserve.
Touche! But what I wanted to reference was the idea that people happily accumulate numbers of rewards points in their weekly purchases.
Folks saying that the Aeroplan SB alliance is "Meh" are ignoring the overwhelming majority of subscribers to any loyalty program who you won't see on a board like this, and accumulate rewards over decades, not years.
Folks saying that the Aeroplan SB alliance is "Meh" are ignoring the overwhelming majority of subscribers to any loyalty program who you won't see on a board like this, and accumulate rewards over decades, not years.
Last edited by Symmetre; Mar 11, 2021 at 5:45 am Reason: fixed a spelling error
#13
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Join Date: Sep 2014
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There's a Loyalty Summit interview video from last August with Mark Nasr, Scott O'Leary and Derek Whitworth. During one amusing scene, the interviewer mentioned Aeroplan's partnership with the LCBO. As I recall, Mark looked at Scott and there were some . The video is almost an hour long, so someone else can scroll through to find the scene.
#14
Join Date: Oct 2011
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#15
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