Loyalty programs have always been a method companies utilized to try and keep consumers. This usually consists of collecting points in exchange for free items or “store money” that can be used for the following purchase. The market has been greatly saturated by variety though; consumers are now more perceptive when choosing which programs to join, selecting only those that are relevant.
Aeroplan saw this happening, and in addition to their current base of rewards consisting of flights, charitable donations, song downloads, necklaces, and fondue set, they have now expanded to include tuition with Higher Ed Points Inc.
“This was a category that we hadn’t touched before, and nobody else was playing in that area.” ― Francine Sternthal, Project Management Director, Aeroplan
Although 90% of Canadians belong to at least one loyalty program, this number has decreased from 94% in 2009. Sternthal makes good use of the first-in-the-market advantage, giving Aeroplan an edge at targeting youth with this innovative idea. While Bank of Nova Scotia and Cineplex Inc. have experience success with their SCENE loyalty program for young people, they are not active in the industry, giving Aeroplan even higher chances of success.
The use of tuition as a reward is infinitely more appealing to youths than fondue sets. As a student, I understand the pain of dealing with ever-increasing tuition fees and so I believe that if Higher Ed affiliates with more schools, it will definitely attract a large amount of the young adult consumer base.