LoyaltyOne

Last updated
LoyaltyOne, Co.
Company typeWholly owned subsidiary of Alliance Data
Industry Loyalty marketing and enterprise services
DefunctMarch 10, 2023
FateFiled for Bankruptcy in 2023
Headquarters,
Canada
Key people
Bryan A. Pearson [1]
(President and CEO)
Services
  • Customer insight and strategy
  • Loyalty programs and marketing
  • Customer experience management
Number of employees
1,500 [2]
Parent Alliance Data
Website www.loyalty.com   OOjs UI icon edit-ltr-progressive.svg
LoyaltyOne office in Toronto LoyaltyOneTorontoOffice.jpg
LoyaltyOne office in Toronto

LoyaltyOne, Co. provides loyalty marketing services to enterprises in retail, financial services, grocery, petroleum retail, travel, and hospitality sectors globally. Under the Alliance Data umbrella, it offers services in coalition loyalty programs, analytics and retail solutions[ buzzword ], loyalty consulting and customer analytics.

Contents

On March 10, 2023, LoyaltyOne filed for bankruptcy. [3]

History

In 1991, entrepreneurs Craig Underwood, Sam Duboc, and Rob Gierkink began planning a coalition loyalty program, involving partners drawn from retail and financial services sectors. This resulted in the March 1992 launch of the Air Miles reward program. In 1998, Alliance Data acquired Loyalty Management Group Canada Inc., parent company of the AIR MILES program, and in 2008 renamed it LoyaltyOne. [4]

Businesses

Air Miles

Air Miles is a Canadian rewards program, with over 11 million active collector accounts within approximately two-thirds of all Canadian households. Cash Rewards or Dream Rewards are redeemable with hundreds of rewards partners across Canada.

2016 points expiry issue

In 2011 Air Miles Canada announced that all points would expire with no compensation to its members after 5 years of being issued. In 2016 with months before the January 1st 2017 deadline was about to be enacted, Canadian news media began to heavily report on the impending deadline with stories of Canadian's struggling to redeem their long collected points. [5] Members who redeemed the points fearing their loss were then outraged about having used up their collected points needlessly. [6] Customers complained that they 'wasted' points on things they didn't want in fear of losing all the points that had been collected. [7]

On December 1, 2016 Air Miles reversed their decision to expire members points, and cited that legislation that is about to be passed in Ontario that forbids the expiration of points would create problems in managing the program with various rules in each Province. In a statement release announcing the about face changes LoyaltyOne promised to ensure that they will still find a way to keep the rewards program profitable: "Going forward, LoyaltyOne will adjust the value proposition to collectors to offset the lost economics … and to maintain, as closely as possible, the economics of the Air Miles reward program prior to cancellation of the expiry policy" [8] A proposed Class Action lawsuit was launched in Alberta. [9]

On October 31, 2017, BrandSpark announces Air Miles as the most trusted brand in Loyalty Program category. [10]

Precima

Precima is the LoyaltyOne data analytics arm specializing in applying data insights to sales strategies, and customer loyalty. Services include assortment optimization, price optimization, promotional optimization, targeted marketing, and supplier collaboration for Fortune 1000 brands in grocery retail.

BrandLoyalty

Founded in 1995 and acquired by Alliance Data in 2013, [11] BrandLoyalty provides services in transactional and emotional loyalty, impacting consumer behavior through promotional campaign-driven loyalty programs.

In 2012, BrandLoyalty merged with IceMobile to expand in the digital space for short-term loyalty programs, instant loyalty programs, and digital solutions.[ buzzword ] [12]

Grocers and brands partnering with BrandLoyalty in European and key Asian markets include REWE, Auchan, TESCO, Metro, Disney, Stikeez, Star Wars, and Jamie Oliver.

COLLOQUY Speaks

COLLOQUY Speaks offers research and insights on loyalty and customer experience industry trends. [13]

IceMobile

IceMobile was founded by Ralph Cohen in 2002 and specializes in digital loyalty platforms and loyalty experience for high frequency retailers globally. Services include mobile solutions[ buzzword ] for loyalty stamp collecting, [14] mobile app 1-to-1 communications for daily shoppers, and personalized promotions solutions.[ buzzword ] As part of Alliance Data, IceMobile offers advanced data analytics with Precima. [15]

Awards

LoyaltyOne has received awards covering marketing, contact centres, human resources, training and leadership. [16] [17] [18] [19] In 2012, LoyaltyOne was named one of Canada’s 50 Best Employers for its third consecutive year and one of Canada’s Greenest Employers. [20] [21]

Related Research Articles

<span class="mw-page-title-main">Loyalty program</span> Marketing strategy designed to encourage customers to continue to shop at a business

A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program. A loyalty program typically involves the operator of a particular program set up an account for a customer of a business associated with the scheme, and then issue to the customer a loyalty card which may be a plastic or paper card, visually similar to a credit card, that identifies the cardholder as a participant in the program. Cards may have a barcode or magstripe to more easily allow for scanning, although some are chip cards or proximity cards.

<span class="mw-page-title-main">Nectar (loyalty card)</span> Loyalty card scheme in the United Kingdom

Nectar is a loyalty card scheme in the United Kingdom run by Nectar 360 Ltd, a company wholly owned by Sainsbury's. The scheme is the largest in the United Kingdom, and comprises a number of partner companies including Sainsbury's, Esso, eBay and British Airways. It launched in 2002 with initially four partner companies, and by 2010 had grown to include over 14 companies and over 400 online retailers. Participating companies cover sectors including travel, retail, finance and newspapers.

<span class="mw-page-title-main">Frequent-flyer program</span> Airline loyalty program

A frequent-flyer programme (FFP) is a loyalty program offered by an airline.

Aeroplan is a coalition loyalty program owned by Air Canada, Canada's flag carrier. The Aeroplan program was created in July 1984 by Air Canada as an incentive program for its frequent flyer customers. In 2002 it was spun off as a separate corporate entity and eventually sold to Aimia. On May 11, 2017, Air Canada announced it plans to launch a new loyalty program to replace the Aeroplan program in 2020. On August 21, 2018, Air Canada, along with TD, CIBC and Visa, agreed to acquire Aeroplan from Aimia for CA$450 million in cash. There are approximately 5 million active members in the program. On August 11, 2020, Air Canada released details about its new loyalty program, which was a relaunch of Aeroplan.

<span class="mw-page-title-main">Flybuys (Australia)</span> Australian customer loyalty program jointly owned by Coles Group and Wesfarmers

Flybuys is an Australian customer loyalty program equally owned by the Coles Group and Wesfarmers through joint venture Loyalty Pacific. Members can accrue points by shopping at Coles Group brands, certain Wesfarmers brands, and some third-party partners like HCF Health Insurance, Coles Express and Optus. Points can then be redeemed for money off purchases at Coles Supermarkets, Coles Express, Liquorland, Kmart, Officeworks, Target and mycar, as well as holidays and household goods.

<span class="mw-page-title-main">Air Miles</span> Miles-based loyalty program

Air Miles is a group of loyalty programs operated by different companies in each region where the brand operates - the programs are available in Canada, the Netherlands, and the Middle East. Points are earned on purchases at participating merchants and can be redeemed against flights with specific airlines.

<span class="mw-page-title-main">PC Optimum</span> Canadian retail loyalty program by the Loblaw Companies

PC Optimum is a single loyalty program operated by Canadian retail conglomerate Loblaw Companies; it was created through the merger of Loblaws' PC Plus and Shoppers Drug Mart's Shoppers Optimum programs.

Loyalty marketing is a marketing strategy in which a company focuses on growing and retaining existing customers through incentives. Branding, product marketing, and loyalty marketing all form part of the customer proposition – the subjective assessment by the customer of whether to purchase a brand or not based on the integrated combination of the value they receive from each of these marketing disciplines.

<span class="mw-page-title-main">My Coke Rewards</span> Consumer loyalty program of The Coca-Cola Company

My Coke Rewards was a customer loyalty marketing program for The Coca-Cola Company. Customers entered codes found on specially marked packages of Coca-Cola products on a website. Codes could also be entered "on the go" by texting them from a cell phone. These codes were converted into virtual "points" which could in turn be redeemed by members for various prizes or sweepstakes entries. The number of points from each product depended on the brand as well as the item itself.

An incentive program is a formal scheme used to promote or encourage specific actions or behavior by a specific group of people during a defined period of time. Incentive programs are particularly used in business management to motivate employees and in sales to attract and retain customers. Scientific literature also refers to this concept as pay for performance.

Asia Miles is a loyalty and frequent-flyer program launched by Cathay Pacific. Launched in February 1999, it allows members to earn miles by making different purchases with co-branded credit cards or on partnered flights, hotels, dining, financial services, retail, and technology products and services. Membership is free and open to individuals aged two or above.

Bread Financial Holdings, Inc. is an American publicly-traded provider of loyalty and marketing services, such as private label credit cards, coalition loyalty programs, and direct marketing, derived from the capture and analysis of transaction-rich data.

Omnichannel is a neologism describing a business strategy. According to Frost & Sullivan, omnichannel is defined as "seamless and effortless, high-quality customer experiences that occur within and between contact channels".

CrowdTwist was a privately held company headquartered in New York City, New York, purchased by Oracle in 2019. Oracle CrowdTwist is a SaaS based omni-channel loyalty and analytics platform that is designed to allow marketers to acquire, engage and retain customers. The information gathered by CrowdTwist can be used and analyzed by companies to create customer profiles on both an individual and macro level. CrowdTwist investors include StarVest Partners, SoftBank Capital, Fairhaven Capital, KBS+P Ventures and Bertelsmann Digital Media Investments. Scott Matthews serves as CrowdTwist's chief executive officer.

<span class="mw-page-title-main">Belly (loyalty program)</span>

Belly was founded in August 2011 in Chicago by Logan LaHive and Craig Ulliott, receiving its initial round of around $3M in funding from Chicago-based venture capital firm Lightbank.

Clover Rewards is a digital loyalty marketing platform that was launched in April 2011. An alternative to traditional paper and plastic card-based incentive programs, Clover Rewards provides interactive loyalty marketing solutions for businesses. The technology that Clover Rewards is built upon works on mobile phones via app or SMS and allows merchants to reward customers for frequent purchases. Clover Rewards also serves as a direct-marketing platform and analytics tool. Clover Rewards fits into the category of mobile loyalty, a modern type of loyalty program. In summer 2018, Perka was rebranded to Clover, its sister company.

Bryan Pearson is a Canadian business executive, bestselling author, and keynote speaker. Pearson serves as the President and C.E.O. of Alliance Data's LoyaltyOne, a global provider of loyalty marketing services, programs and analytics.

Aimia is an investment holding company with a focus on long-term investments in public and private companies, on a global basis, through controlling or minority stakes, and is based in Montreal, Quebec, Canada. It is publicly listed on the Toronto Stock Exchange.

<span class="mw-page-title-main">Scene+</span> Canadian loyalty program

Scene+ is a Canadian loyalty program established in 2007. It is owned by Scene LP, which is jointly owned by Galaxy Entertainment, a subsidiary of Cineplex Inc., Scotiabank, and Empire Company.

<span class="mw-page-title-main">Hotel loyalty program</span> Marketing strategy used by hotels to attract business at their properties

A hotel loyalty program or hotel reward program is a loyalty program typically run by a hotel chain. It is a marketing strategy used by hotel chains to attract and retain business at their properties. The program works to entice customers, especially business or other frequent hotel guests, to favour that particular brand or group of hotels over others when selecting a hotel by offering discounts or privileges, such as upgrades.

References

  1. "Loyaltyone, Co: quotes & news - Google Finance". Archived from the original on 14 September 2016. Retrieved 30 January 2013.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  2. "LoyaltyOne, Inc. - Company Profile by Insideview". InsideView. Archived from the original on 2013-02-11. Retrieved 2013-01-30.
  3. "Air Miles owner Loyalty Ventures files for bankruptcy". Bloomberg. March 10, 2023. Retrieved March 10, 2023.
  4. "Our History". LoyaltyOne. Retrieved 22 December 2017.
  5. "Air Miles program walks back on taking away points from collectors". The Guardian. 1 December 2016. Archived from the original on 10 May 2017. Retrieved 3 September 2021.
  6. Marr, Garry (18 November 2016). "The battle for Canadian loyalty and expiring points: Consumers will fight hard for what they've collected". Financial Post. Retrieved 3 September 2021.
  7. Harris, Sophia (3 December 2016). "Angry Air Miles collectors demand back points they rushed to use on 'junk'". CBC News. Retrieved 3 September 2021.
  8. Krashinsky, Susan (1 December 2016). "Air Miles backs off from plan to let points expire". The Globe and Mail. Retrieved 3 September 2021.
  9. Harris, Sophia (16 September 2016). "Class-action lawsuit filed against Air Miles, alleging unfair customer treatment". CBC News. Retrieved 3 September 2021.
  10. "BrandSpark Announces Canada's Most Trusted Award Winners for Retailers (Brick & Mortar and E-Commerce) and Service Brands as Voted by Canadians". Newswire. Retrieved 2018-01-04.
  11. "Alliance Data | News Release". phx.corporate-ir.net. Retrieved 2018-01-04.
  12. "IceMobile" . Retrieved 2018-01-04.
  13. "COLLOQUY Speaks". www.loyalty.com. Retrieved 2018-11-01.
  14. "BRANDLOYALTY WINS LOYALTY AWARDS 2014!, Business, Nieuws, BrandLoyalty". Archived from the original on 2018-01-05. Retrieved 2018-01-04.
  15. Digital Loyalty Platform and Experience, IceMobile. "LinkedIn: IceMobile". Archived from the original on 2010-10-31.
  16. "Awards and Recognition". Loyalty One. Archived from the original on 2009-10-19. Retrieved 2009-09-29.
  17. "Air Miles reward program receives the silver contact centre employer of choice certification award!". Contact Centre Employer of Choice. 2008-08-11. Archived from the original on 2011-07-08. Retrieved 2009-09-29.
  18. "Best Triggered Personalized Email" (PDF). Marketing Sherpa. Retrieved 2009-09-29.
  19. "Winners in 2007". Canadian Marketing Association. 2007. Archived from the original on 2011-07-18. Retrieved 2009-09-29.
  20. "Aon Hewitt's 2012 List of the Best Employers in Canada". Archived from the original on 14 April 2012. Retrieved 1 May 2012.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  21. "Canada's Green 30 companies for 2012". Maclean's. 27 April 2012. Retrieved 3 September 2021.