CIBC Divorce from PC Financial Shines Light on Bruised Loyalty Card Industry

By Marowits, Ross | The Canadian Press, August 18, 2017 | Go to article overview

CIBC Divorce from PC Financial Shines Light on Bruised Loyalty Card Industry


Marowits, Ross, The Canadian Press


Loyalty cards popular despite past mistakes

--

MONTREAL - Another divorce in Canada's loyalty card sector has consumers stuck in the middle asking questions about the future of an industry still bruised by the actions of some of its largest providers.

The Canadian Imperial Bank of Commerce announced this week it is severing ties with Loblaw's (TSX:L) President's Choice Financial and rolling PC's two million bank accounts into its Simplii Financial brand starting Nov. 1.

It is the latest split between loyalty programs and the country's banks, which are increasingly moving towards digital banking, following prior breakups between Shopper's Drug Mart and Royal Bank of Canada and Costco and American Express. TD took over from RBC as the primary card for Aeroplan, while Air Canada recently said it plans to move away from Aeroplan to start its own loyalty program after 2020.

Technology and the structure of loyalty programs have dramatically changed since CIBC and Loblaws partnered almost two decades ago, said Jacques Nantel, marketing professor emeritus at the University of Montreal's HEC business school.

The industry has been going through an upheaval, he said, because of the high cost to retailers of operating a rewards program.

"The payback is not what it used to be."

CIBC's experience running the PC Financial online banking operation will allow it to compete with rivals such as Tangerine, while Loblaws will focus on its credit card and PC Plus loyalty program, said Patrick Sojka, a travel rewards expert and founder of RewardsCanada.ca.

"Even though banks are still making tons of money they are trimming the products that aren't adding enough to the bottom line," he said.

Some industry observers believe the breakup clears the deck for Loblaws, which purchased Shoppers in 2014, to merge or overhaul the PC Plus and Optimum programs, recognized in surveys as among the most favoured by Canadians. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

CIBC Divorce from PC Financial Shines Light on Bruised Loyalty Card Industry
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.