Canadian Consumers Prioritize Tangible Benefits, Easy Access in Loyalty Programs.

Canadian customers value access and tangibility in loyalty programs, with 64% comfortable sharing data for benefits. Programs with unique perks and benefits are more appealing, and customers tend to be active in only half of the programs they join. The current economic environment emphasizes the importance of tangible rewards, such as using loyalty points on daily purchases.

Canadian companies are leveraging artificial intelligence (AI) and loyalty programs to drive growth and enhance customer engagement. Two prominent examples illustrate these strategies.

Bell Canada and Cohere's AI Partnership

Telecom giant BCE Inc.'s Bell Canada has partnered with Canadian AI company Cohere to sell AI tools to governments and businesses. Through this deal, Bell will offer access to Cohere’s large language model software, North, to its enterprise and government customers. This partnership aims to provide Canadian companies with an alternative to American cloud computing giants like Microsoft Corp. and Amazon Web Services [1].

The collaboration includes hosting Cohere’s technology on Bell’s data center infrastructure, ensuring that sensitive data remains within Canadian borders. Bell will also integrate Cohere’s AI technology internally to improve productivity and efficiency. BCE and Bell CEO Mirko Bibic emphasized the importance of this partnership, stating, "We’re going to go hard and we’re going to go fast" [1].

For Cohere, this deal represents a significant milestone, as it allows them to expand their customer base and increase domestic adoption of their AI technology. The company’s co-founder and CEO, Aidan Gomez, noted that over 90% of Cohere’s revenue came from outside Canada as of last year, but this is changing due to increased attention to Canadian sovereignty [1].

High Tide Inc.'s Loyalty Program Milestones

High Tide Inc., a leading cannabis retailer, has achieved notable milestones in its loyalty programs. The company has surpassed 2 million Cabana Club members and 104,000 ELITE paid members nationwide. This significant growth reinforces High Tide’s position as Canada's largest bricks-and-mortar cannabis loyalty program [2].

The company's discount club model has proven effective in differentiating Canna Cabana from competitors in Canada's crowded cannabis retail landscape. High Tide's loyalty programs serve as critical infrastructure for scaling efficiently, providing substantial competitive advantages such as enhanced customer loyalty, predictable recurring revenue streams, and valuable consumer data for merchandising decisions [2].

High Tide has also filed a preliminary base shelf prospectus that will allow it to offer up to C$100 million in securities over a 25-month period. This financing flexibility supports the company's continued retail expansion strategy without immediate dilution [2].

Customer Preferences and Economic Environment

Canadian customers value access and tangibility in loyalty programs. According to a recent survey, 64% of Canadians are comfortable sharing data for benefits. Programs with unique perks and benefits are more appealing, and customers tend to be active in only half of the programs they join. The current economic environment emphasizes the importance of tangible rewards, such as using loyalty points on daily purchases [1].

Conclusion

Canadian companies are adopting AI and loyalty programs to drive growth and customer engagement. Bell Canada’s partnership with Cohere demonstrates a strategic approach to leveraging AI for both enterprise and customer-facing applications. High Tide Inc.'s loyalty program milestones highlight the effectiveness of a well-executed discount club model in the cannabis retail market. These strategies are not only enhancing customer satisfaction but also positioning these companies for future growth in a challenging economic environment.

References:
[1] https://www.theglobeandmail.com/business/economy/article-bell-cohere-artificial-intelligence-partnership-north/
[2] https://www.stocktitan.net/news/HITI/high-tide-tops-2-million-cabana-club-members-and-100-000-elite-os7j1euo19so.html