Patrick Sojka, the founder of RewardsCanada.ca and FrequentFlyerBonuses.com, told Loyalty360 that Canadian credit card companies have been looking at and adding non-point earning benefits to enhance customer experiences and their engagement.
But now, those companies might have to adjust their offerings to earn customer loyalty.
“The Canadian market maxed out a few years ago on the reward offering side, and with the upcoming interchange rate change from Visa and MasterCard in April, issuers have to look at how they can reward their card holders outside of points and miles,” Sojka explained to Loyalty360. “Some of the additions are business-class lounge access, Priority Security Screening, discounted airport parking, and, of course, very extensive insurance packages with travel medical insurance, trip cancelation/interruption insurance, etc.”
RewardsCanada.ca’s recently recognized five Canadian credit card companies in five major categories.
With more than 80 travel rewards credit cards to choose from, RewardsCanada.ca helps Canadians make informed credit card decisions by ranking cards in five major categories, including: Travel Points (with annual fee), Travel Points (with no annual fee), Hybrid (flexible currency), Airline, and Hotel. The credit cards are evaluated by key factors including cost, co-brand partnerships, rate-of-return, benefits and redemption options.
Here are the winners:
Travel Points (with annual fee): BMO Rewards World Elite MasterCard
Travel Points (with no annual fee): American Express Blue Sky Credit Card
Hybrid: American Express Gold Rewards Card
Airline: TD Aeroplan Visa Infinite Card
Hotel: The Starwood Preferred Guest Credit Card from American Express
Sojka said that the BMO Rewards World Elite MasterCard stands out with a straight 2% return when redeeming points.
“It isn’t tiered or devalued at any point,” Sojka explained. “Add to this a large signup bonus, Priority Pass membership, four lounge passes, and an extensive insurance package make it very strong.”
Sojka offered some advice for credit card companies in Canada seeking to enhance their offerings from a customer loyalty/customer engagement standpoint.
“My advice to credit card companies in Canada would be to go away from the traditional award chart model that we still see on some cards, and move to the flat rate redemption on any and all travel,” Sojka suggested. “The model is old for the market and, while applicable for Frequent Flyer Programs, it doesn’t make sense anymore in the market place for proprietary credit card programs, especially when many do offer the book your travel yourself and then redeem the points against the charge when it shows up on your account. Also, leverage partnerships to enhance the experiences. Whether it’s lounge passes from Priority Pass, Lounge Buddy, or other lounge access companies to free rides with Uber, card companies need to have that engagement so that card holders aren’t churning cards every six months to simply take advantage of signup bonuses.”