Aimia’s Aeroplan Loyalty Program Receives Massive Enrollment Boost from TD Bank

Canadian-based loyalty program operator Aimia (which operates Aeroplan–the country’s premier coalition loyalty program) is already reaping benefits from a deal it made last year with TD Bank Group (TD). Since TD Bank Group became Aeroplan’s primary financial services partner and credit card issuer on Jan. 1, 2014, TD Bank has signed up 275,000 new credit card holders in the first three months of its partnership.

In a typical year, between 50,000 and 80,000 new cardholders are added, so achieving such a large increase in one quarter was incredible for Aimia. TD Bank is Canada’s second-largest bank.

The new TD Bank Aeroplan cardholders are in addition to nearly 550,000 that were transferred from CIBC (TSX:CM) as part of a 10-year deal making TD Aeroplan’s primary issuer of Visa credit cards. American Express also added 30% more new cardholders, raising the total number of co-branded credit cards to 1.4 million.

Isabelle Troitzky, Senior Communications Adviser for Aimia, told Loyalty360 that the successful launch of the agreement with TD “gives us a strong base on which to grow our gross billings. The total number of active credit cardholders has gone from 1.2 million at the time of the CIBC conveyance transaction to 1.4 million at the end of the first quarter.” 

Troitzky said there are more than 4.8 million active Aeroplan members and the base is growing as a result of TD Bank’s acquisitions.

“We have more than 4.8 million members and out of that, 1.4 million hold an Aeroplan co-branded credit card,” Troitzky explained. “You can be an Aeroplan member and not have a co-branded financial card (CIBC, TD, Amex), but only your Aeroplan Membership Card. In the latter case, you can earn miles with our non-financial partners in the retail and travel sectors.”

The 275,000 enrollments represent an extraordinary 50% increase on the portfolio conveyed to TD Bank, Troitzky added, “which is significantly above what we would have enrolled in a three month period. This is great news for the program. The TD acquisitions are bringing new members to Aeroplan. Only around half of the new members acquired by TD were previously Aeroplan members. New active members mean an even more attractive program with interesting partners.”

Troitzky offered her views on what factors caused the significant increase in enrollment.

“Both the new TD and CIBC Aeroplan credit cards offer enhanced Aeroplan program and Air Canada features and benefits and are very attractive,” she explained. “Moreover, much investment was put into marketing and advertising at the end of last year and this year both by TD and Aeroplan to promote the benefits of the TD Aeroplan cards.”

New Aeroplan co-branded financial credit cards will provide cardholders with more flexible options, better earn rates and new recognition features; all of which is in addition to the benefits to be added under the Distinction program.

A new enhanced premium card targeted at high net worth in Canadian households, with a higher earn rate, will be offered, in addition to premium and mid-market credit cards.

The launch of two additional co-branded targeted credit cards is expected to include:

  1. A card aimed at customers travelling frequently between Canada and the United States.
  2. A card specifically for Canadian small business owners, which will allow small business owners to choose additional features and benefits specifically designed to their needs.

Both the enhanced premium and premium cards will include a suite of unique Air Canada features and benefits. During 2014, annual fees will be waived and bonus miles awarded to welcome members to the new cards.

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