RBC Avion Partners with Canadian Tire: A Game-Changer for Canadian Loyalty Programs
By Richard Schenker
In an exciting development for the Canadian banking, retail and rewards landscape, RBC Avion has announced a strategic partnership with Canadian Tire, a collaboration that brings together two very influential players in the Canadian market. This partnership will integrate Canadian Tire’s powerful rewards program with RBC Avion’s suite of credit and debit card offerings, creating a synergetic relationship that promises to reshape the way Canadians earn and redeem loyalty points.
The Power of Synergy: What the Partnership Means for Both Brands
The formation of this new alliance may not come as a surprise. RBC has long had a partnership with Petro-Canada, offering RBC credit and debit card users cents off per litre when filling up at Petro-Canada stations. More recently, Canadian Tire established reciprocity between its CT Money program and Petro Points, making a natural partnership with RBC inevitable.
At first glance, the collaboration between RBC, a financial institution, and Canadian Tire, a major retailer and banking player, might seem like an unusual pairing. Canadian Tire isn’t just a retailer; it also operates a bank with its own suite of financial products, including credit cards offering CT points accelerators and banking services. However, this partnership represents a strategic blending of two distinct yet complementary worlds: financial services and consumer goods during a time where Canadians are seeker greater value for their loyalty to brands.
For RBC, the collaboration broadens the appeal of its Avion Rewards program—one of Canada’s most respected loyalty programs. By allowing RBC Avion credit and debit cardholders to earn Canadian Tire Money, RBC customers will now have the flexibility to use their rewards on a diverse range of products, from automotive supplies to home goods and outdoor equipment. This will enable RBC customers to unlock more options and greater value from their loyalty points.
Meanwhile, Canadian Tire stands to benefit from RBC’s extensive customer base in the banking sector. This partnership provides Canadian Tire with an opportunity to deepen its existing loyalty ecosystem, which includes Canadian Tire Money and the Triangle Rewards program. As a result, Canadian Tire shoppers will enjoy a more robust and valuable loyalty experience. This union will also help Canadian Tire increase its share of wallet with RBC customers who also shop Canadian Tire competitors.
What This Means for the Canadian Loyalty Landscape
The announcement of this partnership raises several key questions about the future of the Canadian loyalty market. In discussing the potential implications, fellow marketing and loyalty expert Lorne Solway, Managing Director of Upper Post Consulting Group speculated whether this could be the start of a larger movement—perhaps down the road the merger of these programs or the formation of a new loyalty coalition. Solway wonders, “Is there potential for RBC and Canadian Tire to join forces with other major brands under the RBC Avion banner to create a supercharged rewards program capable of posing a real threat to the likes of Aeroplan, Scene+, and PC Optimum?”
The possibility of a more consolidated rewards ecosystem is certainly within reach with this announcement. Coalition and partner consortium loyalty programs, where multiple brands combine their loyalty points into one system, have gained popularity in Canada, with programs such as Aeroplan and Scene+. Solway suggests that “a merger or consolidation of RBC’s Avion and Canadian Tire Money into one unified system could pose a serious challenge to these existing programs, especially if it attracts an even larger network of brands.”
In the long run, it is also possible that one of these programs could eventually be phased out or absorbed into the other as both RBC and Canadian Tire might seek to streamline their offerings and avoid market redundancy. Whether this means the end of Canadian Tire’s loyalty program (which has roots in this country since 1958) or an overhaul of RBC’s Avion offerings remains to be seen, but what is clear is that this partnership paves the way for future innovation in Canadian loyalty programs.
Conclusion: A New Era in Canadian Loyalty Programs?
The partnership between RBC Avion and Canadian Tire signals the beginning of a new era for Canadian loyalty programs. The synergies benefiting both brands and their customers suggest that this collaboration will have a lasting impact on how Canadians earn and redeem rewards. Whether it eventually leads to a merger of programs or sparks a broader trend of partnerships across the industry remains to be seen. But one thing is certain: the Canadian loyalty landscape is about to become much more competitive, and consumers will benefit from a broader range of diverse and flexible rewards options than ever before.
Richard Schenker is a highly accomplished customer engagement thought leader, loyalty practitioner and partnership curator who has designed, renovated, and managed some of the world’s leading customer loyalty programs. He has an impeccable track record of success at enriching transactional and emotional relationships between iconic brands and their customers, across multiple business sectors. Richard has spent the first half of his career in senior loyalty roles with the Hudson’s Bay Company and Shoppers Drug Mart and the remainder of his career in leadership roles with leading loyalty agencies, Air Miles and Bond Brand Loyalty. Currently he is the Founder & Chief Customer Engagement Officer of Loyal Strategy Consulting, a consulting firm focused on enriching customer loyalty for leading brands. Richard can be reached at: rschenker@loyalstrategyconsulting.com or visit: https://loyalstrategyconsulting.com
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