Starting February 1, 2018 Loblaws’ PC Points will merge with Shoppers Drug Mart’s Optimum program to form PC Optimum. This move comes more than three years after Loblaws acquired Shoppers Drug Mart.
It is an unification that will make collecting points and collecting shopper data easier and less fragmented, with an easy-to-remember redemption system of 10,000 points equaling ten dollars. Customers receive approximately 15 points per dollar spent, and can redeem their points once they reach 10,000. All value accumulated before the merger will be carried over. In Quebec, Pharmaprix points can be converted to PC Optimum.
PC Points and Shoppers Optimum have both been successful and popular programs for many years. Now, there is the potential to leverage strengths from both loyalty programs to make PC Optimum a dominant force in the Canadian market in the future. One card, or app, can be used across the Loblaws network, including No Frills, Real Canadian Superstore, Zehrs, Independent City Market, Pharmaprix, Fortinos, Joe Fresh, Provigo, Loblaws, and Shoppers Drug Mart, which will make it easier for customers to remember to collect and use their points. Rewards are also tailored to match your profile of frequent purchases.
In an interview with the Toronto Star, BMO analyst Peter Sklar explained that it is difficult to determine if the new PC Optimum system will provide added savings since points are earned faster but have less dollar value than before. He noted that marketing of the program will be very important to ensure positive customer reception.
Key Takeaways
For other retailers, or brands, looking to improve their loyalty programs, this merger shows the advantages of unification and breadth across a network and the importance of a system that customers find easy to use and understand. Having one system is more efficient for data collection as well, and will help develop better shopper insights. Personalized offers and added perks or incentives can also draw customers to your program, which in turn will drive loyalty to your brand.
