Canadian Tire is well known for their
“Canadian Tire Money.” This was used to create loyalty to the store encouraging
people to save up their Canadian Tire Money for future purchases.
How
this worked was simple, you made a purchase and you would get back 0.04% of
your purchase in Canadian Tire Money. However this will only go into work if
you spend $2.00 or more. You would make your purchase, pay with your money and
receive Canadian Tire Money in paper bills.
After a while of
collecting so many Canadian Tire bills the amount you have to count adds up.
Knowing this Canadian Tire came out with a new approach that they are testing
and it is very much like the same program. The new way is called the “Canadian
Tire Advantage card.” It works the same way but you earn your points through
the card and you take a lower return rate. For this card you would take a 0.1
per cent return rate.
What do you
think? Would you prefer the paper return rate at 0.4 or would you take the 0.1
for an easier way of keeping track?
Sources:
http://www.vancouversun.com/Canadian+Tire+tests+loyalty+program+instead+money/6156461/story.html
I love the ability to keep track of what I spend and that usually involves plastic, however, trading this for 0.3% loss in benefits may make me think twice.
ReplyDeleteGreat informative blog by the way!