Two-thirds of consumers find location-based rewards appealing

Canadian Marketing Association and LoyaltyOne study reveals Canadian shoppers switching on to in-store beacons

TORONTO, Oct. 5, 2015 /CNW/ - Most Canadian shoppers are using their smartphones to assist them while shopping and would like businesses to send them location-based offers and rewards, reveals a new report from the Canadian Marketing Association (CMA) and LoyaltyOne. Over half (56%) of those surveyed have used beacon technology at some point while shopping and overall consumer awareness of beacons and location-based services (LBS) technology is high (86%).

"Today's consumer is even more empowered thanks to the advances in mobile technology," says Sandra Singer, Vice-President of Research, CMA. "Our research indicates shoppers are already using their smart devices in-store which indicates a clear opportunity for Canadian businesses to directly market to customers through mobile devices."

Of those surveyed, 62% of shoppers said they use their mobile devices to assist them with their in-store shopping experience, and this increases at the millennial generation with 80% using their device. Almost half (45%) of those surveyed indicated they have used a device in-store that has led them to make an immediate purchase. When asked what is appealing about connecting with retailers through in-store beacons, 62% of shoppers indicated they like the idea of receiving rewards relevant to their location and over half (56%) like the idea of receiving alerts relevant to their whereabouts.

"Canadian retailers as a whole have approached beacon retail technology with caution. Beacons now have consumers' attention and we are seeing more and more retailers testing the waters," says Michael Cohen, Director of Mobile API & Analytics Innovation, LoyaltyOne. "For retailers that are currently using beacons or thinking about entering the beacon market, it is vital that they merge these new digital customer solutions with big data so that their customers receive relevant, personalized offers."

For the select Canadian businesses that are already using beacons and LBS technology, the study found that frequency of LBS is a big reason consumers uninstall or opt-out of receiving beacon notifications. Of those surveyed, one-fifth (23%) of respondents said they have uninstalled or opted out of push notifications from a retailer's app due to the frequency of messaging, while another one-fifth (20%) uninstalled or opted out due to lack of relevance.

The complete report Using Digital Solutions to Enhance the Customer Experience is available at: www.the-cma.org/resource/leadership/enhance-customer-experience.

About the Study and Methodology
The CMA/LoyaltyOne undertook a study of consumer awareness, interest, and adoption of location based technology. 1,062 consumers participated in the study. LoyaltyOne surveyed a sample of its AIR MILES Collector base. 1,062 consumers completed an online survey, of which 61% are female and 39% male. The sample universe was weighted to be representative of the active AIR MILES Collector base by engagement segment, age, and region.

About the Canadian Marketing Association
The Canadian Marketing Association embraces Canada's major business sectors and all marketing disciplines, channels and technologies. Its 800-plus members encompass all facets of marketing and represent consumer and business-to-business marketers and advertising agencies. These organizations make a major contribution to the economy driving commerce, investments in media and new marketing technologies and providing employment for millions of Canadians.

For more information, visit theCMA.ca.

About LoyaltyOne

LoyaltyOne is a global leader in the design and implementation of coalition loyalty programs, customer analytics and loyalty services for Fortune 1000 clients around the world. LoyaltyOne's unparalleled track record delivering sustained business performance improvement for clients stems from its unique combination of hands-on practitioner experience and continuous thought leadership. LoyaltyOne has over 20 years history leveraging data-driven insights to develop and operate some of the world's most effective loyalty programs and customer-centric solutions. These include the AIR MILES Reward Program, North America's premier coalition loyalty program; a majority stake in European-based BrandLoyalty, one of the largest and most successful campaign-driven loyalty marketers outside of the Americas; and a working partnership with Latin America's leading coalition program, dotz. LoyaltyOne is also the owner of COLLOQUY, a group dedicated to research, publishing and education for the global loyalty industry.

LoyaltyOne is an Alliance Data company. For more information, visit www.loyalty.com.

SOURCE LoyaltyOne

Stacey Marson, LoyaltyOne, [email protected], 416.552.2834; Natasha Boeck, Environics Communications, [email protected], 416.969.2724