Leadership Case - Air Miles Reward Program

Founded in 1992, the AIR MILES Reward Program is Canada's premier coalition loyalty program. More than 10

million active Collector accounts, representing approximately two-thirds of all Canadian households, actively

participate in the Program. The AIR MILES Reward Program allows Collectors to indulge in leisure,

entertainment, merchandise, travel and other lifestyle rewards quickly, simply by doing their everyday shopping

for products and services at AIR MILES Sponsors. AIR MILES reward miles can be redeemed for more than

1,200 different rewards, such as movie passes, family attractions, electronic merchandise, sports and recreation,

travel and more.

www.airmiles.ca

AIR MILES® Reward Program

Case Study

The 1:1 Difference

Business Challenge

In January 2010, the AIR MILES Reward Program (AMRP) conducted a customer-centric test marketing program with Sobeys, the grocery Sponsor in Atlantic Canada. The business goal of this 1:1 initiative was twofold:

1. Generate significantly more grocer sales, at positive ROI, than other marketing vehicles;

2. Create a sustainable competitive advantage both for Sobeys and for AMRP by using SKU and promotion response data, combined with new 1:1 marketing technology to create a unique, highly personalized marketing campaign for the customer.

Practical Solution

The final work product was extraordinary and the first of its kind in Canada. Sobeys was able to use the AIR MILES Collector Update vehicle, but with their SKU level data and AMRP program data driving the targeting. This created a one of a kind marketing delivery vehicle. Together, Sobeys and AMRP provided 1:1 offers to 180,332 Sobeys customers. Each customer received unique product offers tailored to their preferences, as well as an achievable transactional offer to drive total basket size and store sales. The package also included a letter from the manager of the Sobeys store where they shop. Because no two Collectors are the same in what they buy from Sobeys or what kinds of offers they respond to, and the offers were based on this individual needs data, every Sobeys Collector received a unique piece as a result of this one-of-a-kind data and printing technology.

Proven Results

The results were equally outstanding. Sobeys total response rates were significantly higher than previous non-personalized, less data driven campaigns. Response rates to the product offers were five to ten times higher than previously