DM Magazine March 2025

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Marketing Loyalty to Americans Research & Insights PM 4 0 0 5 0 8 0 3

VOL. 38 • NO. 3 • MARCH 2025

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// 3 ON THE COVER Vol. 38 | No. 3 | March 2025

PRESIDENT Publisher & Editor-in-Chief Steve Lloyd - steve@dmn.ca DESIGN / PRODUCTION Jennifer O’Neill - jennifer@dmn.ca ADVERTISING SALES Steve Lloyd - steve@dmn.ca

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Study on Franchise Marketing: Spotlight on Franchisor and Franchisee Marketing ADOBE STOCK/ RAWPIXEL.COM

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POSTMASTER:

Still Marketing to Americans?

Here are Direct Mail Trends in 2025

MARKETING RESEARCH

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North American Program Owners Focus on Enhancing Loyalty & Customer Engagement

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ENGAGE WITH DATA-DRIVEN BUSINESSES:

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talking points

Royal Bank of Canada and Canadian Tire Corporation formed a long-term strategic loyalty partnership between Avion Rewards and Triangle Rewards.

This collaboration will enhance the value of both programs by linking millions of eligible RBC credit and debit cardholders to Triangle Rewards, enabling them to earn more Canadian Tire Money while unlocking exclusive promotions at Canadian Tire, SportChek, Mark’s and other CTC retail banners. The partnership expands the reach of Triangle Rewards and further strengthens Avion Rewards’ strong network of merchant partners.

“We are bringing together two deeply rooted Canadian companies — Canada’s largest bank and the country’s largest general merchandise retailer — to increase the amount of everyday value, rewards and savings that we provide to our shared customers,” said Vinita Savani, Executive Vice President, Cards & Loyalty, RBC. “Our combined scale and unparalleled reach will leverage the strength of our businesses and leading loyalty programs to provide additional benefits for millions of Canadians in meaningful new ways.”

“This partnership creates a loyalty powerhouse, combining strong brands and putting additional Canadian Tire Money into the hands of cardholders and members,” said Darryl Jenkins, Executive Vice President & Chief Development Officer, Canadian Tire Corporation. “It means millions of linked members will gain access to unique promotions and new ways to expand the value of their favourite loyalty programs every day. The partnership will increase our loyalty membership and drive retail sales across our banners.”

Under this partnership, eligible RBC credit and debit cardholders will be able to earn Canadian Tire Money at an accelerated rate when shopping at CTC’s retail banners.

They will also enjoy exclusive offers and ❱ DMN.CA

promotions through RBC and Avion Rewards.

These new offerings are expected to launch in 2026.

This partnership expands the ways linked members can earn through Triangle Rewards — one of Canada’s leading loyalty programs.

Triangle Rewards enables nearly 12 million loyalty members to collect and redeem Canadian Tire Money across CTC’s banners. A cornerstone of CTC’s new True North strategy, Triangle Rewards is enhancing its value to Canadians through more personalized offers and a coordinated strategy combining its banner stores, the unique retail-driving capability of Triangle Cards, and everyday partners like Petro-Canada, RBC and other leading brands currently in negotiation.

Avion Rewards, Canada’s largest proprietary loyalty program, has been a leader in loyalty for more than 20 years and is available to all Canadians, regardless of where they bank.

It provides Canadians with the flexibility to shop, save, earn and redeem for everyday merchandise, aspirational rewards and experiences. With its market-leading travel value proposition, extensive roster of over 2,000 retail partners, unparalleled experiences, innovative features and payment capabilities, Avion Rewards provides its members with a comprehensive rewards experience that spans their entire shopping journey.

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Money.ca, a leading authority in personal finance, revealed the findings of its comprehensive survey to identify the most popular credit cards in Canada.

The findings emphasize the drastic difference between the most popular credit cards in Canada and Money.ca’s heavily researched best credit cards in Canada list (based on methodology).

Key Highlights from the Survey: Notably, the top two cards — PC® Mastercard and Canadian Tire Triangle Mastercard — are not issued by any of Canada’s Big Five banks. ❯ For many Canadians, rewards play a key role in credit card decisions. Six of the top 10 most popular credit cards — such as the PC Mastercard and Canadian Tire Triangle Mastercard — are store-branded, reflecting a strong preference for rewards tied to everyday spending on groceries and retail. ❯ Only two of the top 10 cards — the RBC Avion Visa Infinite and BMO AIR MILES Mastercard — focus on travel rewards. ❯ Similarly, just two — the BMO CashBack Mastercard and TD Cash Back Visa Card — prioritize cash back.

the increasing role of online shopping in Canadians’ spending habits.

“What we found most interesting is that this survey showed that the most popular credit cards held by Canadians aren’t necessarily the cards that topped our best credit card list and that there’s great diversity in how Canadians feel about and use their credit cards,” said Cory Santos, a credit card editor at Money.ca .

“This survey reflects the preferences and priorities of Canadian consumers, highlighting the credit cards that offer the most value and align with their financial goals.”

The data presented by Money.ca is based on a survey conducted by Pollfish, which gathered insights from 2,000 Canadian adults between August 1-6, 2024. The online survey allowed respondents to select multiple options, ensuring a comprehensive view of consumer preferences. As a result, some percentage totals exceed 100 percent, reflecting the diverse ways Canadians use credit cards.

For a detailed breakdown of the survey results and to explore the full list of Canada’s most popular credit cards, visit https://money. ca/credit-cards/most-popular-canadiancredit-card-survey . And for Money.ca’s best credit cards in Canada list, visit https://money. ca/credit-cards .

Money.ca’s best credit card methodology involved analyzing over 17,500 data points across more than 150 credit cards, evaluating each card’s features, benefits, and overall value. Money.ca’s proprietary scoring system assessed various metrics, including welcome bonuses, rewards structures, travel insurance offerings, interest rates, and hidden fees.

Money.ca is a trusted Canadian resource dedicated to providing comprehensive and unbiased financial information. Covering a wide range of finance topics, including credit cards, banking, mortgages, retirement and investing, Money.ca helps Canadians make informed decisions to achieve their financial objectives.

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The Amazon.ca Rewards Mastercard rounds out the list at number 10, underscoring

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Organizations that strategically measure and act on employee engagement data are better positioned to navigate uncertainty and sustain workforce productivity, according to McLean & Company’s newly published research insights in the firm’s Employee Engagement Trends Report 2025.

The report is based on insights from the firm’s Employee Engagement Survey and the HR Trends 2025 report. This year’s edition of the Employee Engagement Trends Report presents an in-depth analysis on survey data from 2024, and an overview of year-overyear engagement trends from 2019 to 2024.

This is based on survey responses from over MARCH 2025

// 5 pathways, providing access to upskilling opportunities, and fostering a culture of continuous development will be essential for improving engagement in 2025 and beyond.

Coworker relationships remain a strong engagement driver. With 78 percent of employees reporting positive co-worker relationships, strong co-worker connections continue to play a key role in fostering engagement and resilience. Organizations can leverage this strength by encouraging mentorship, collaboration, and team-building initiatives that further enhance workplace culture.

216,000 employees across 236 organizations, providing critical insights into the evolving state of workplace engagement.

McLean & Company’s 2025 report reveals that despite a challenging external environment in 2024, which was marked by global economic uncertainty, shifting labor market conditions, and continued workplace transformations, overall engagement levels have remained mostly stable. According to the HR research and advisory firm’s Employee Engagement Survey database findings, 62.6 percent of employees are categorized as engaged, nearly 2 percent higher than pre-pandemic levels. However, the firm cautions that organizations cannot afford to be complacent. While high-level engagement scores have held steady, key drivers such as work-life balance, leadership communication, and career development opportunities showed incremental shifts that warrant proactive attention.

“As economic pressures and labor market uncertainties continue, maintaining employee engagement requires more than a once-ayear survey,” says Laura Hansen-Kohls, vice president, HR Diagnostics, Advisory & Data Insights at McLean & Company. “Organizations that implement ongoing measurement and take targeted action to address engagement gaps will see the greatest success in retaining talent, driving performance, and fostering resilience. Employee engagement is dynamic, and companies that commit to sustained, datadriven strategies will gain a competitive edge.”

Key Findings From McLean & Company’s 2025 Employee Engagement Trends Report: Work-life balance gains traction, but leadership burnout persists. Worklife balance saw a 1.1-point increase in 2024, suggesting progress in employee satisfaction with flexible work arrangements MARCH 2025

and wellbeing initiatives. However, managers continue to report significantly lower satisfaction compared to individual contributors, underscoring the need for more robust leadership support and workload management strategies. Leadership burnout remains a growing concern, as people managers are 1.7 times more likely to report high levels of workplace stress compared to non-managers.

Total compensation scores remain stagnant amid cost-of-living concerns.

Despite economic fluctuations and rising inflation, employee satisfaction with total compensation remained relatively unchanged in 2024. Compensation and benefits continue to be among the lowest-scoring engagement drivers, reinforcing the need for organizations to build a comprehensive total rewards strategy that aligns employee expectations with organizational priorities.

Communication gaps in executive leadership persist. While organizations are increasing efforts to act on employee feedback, only 53.2 percent of employees reported understanding the rationale behind executive decisions, a slight decline from previous years. Transparency and clear communication from senior leadership remain critical areas for improvement, especially during times of organizational change and external uncertainty.

Career advancement and development shows modest growth but remains a concern. Employees seeking career progression opportunities saw minor improvements in 2024, yet perceptions of upward mobility within organizations remain a challenge. The report highlights that employees who receive meaningful feedback from their managers are 5.7 times more likely to feel supported in their career advancement efforts. Establishing well-defined career

Key Takeaways From the 2025 Report: Sustain Employee Engagement in an Evolving Workplace McLean & Company’s research emphasizes the critical role of ongoing employee listening strategies, executive leadership transparency, and targeted action planning in sustaining engagement. Engagement is not a static metric but a continuous effort that requires organizations to adapt to changing employee needs and external conditions.

The 2025 Employee Engagement Trends Report provides organizations with the data and insights needed to move beyond measurement to meaningful, high-impact action in the future of work.

“Organizations that actively monitor engagement trends and adjust their strategies accordingly will be better equipped to retain top talent, improve performance, and create a more resilient workforce,” explains Hansen-Kohls. “The findings from this year’s report reinforce the importance of taking a proactive, human-centric approach to employee engagement.”

To access the full Employee Engagement Trends Report 2025 and learn more about McLean & Company’s employee engagement solutions, visit the research page. McLean & Company workshops offer an easy way to analyze and act on employee engagement data. To learn more about how to gather the employee voice to inform engagement action planning, please visit the workshop page.

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Porter Airlines, BMO and Mastercard launched two new BMO VIPorter Mastercard credit cards — creating the first and only travel credit card program in Canada that grants immediate frequent flyer benefits for cardholders in an airline’s loyalty program, while enabling accelerated travel rewards.

More than 30,000 people have joined the pre-launch waitlist since the program was announced in January 2025 as Canadians seek more choice and benefits from their travel credit cards.

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The new BMO VIPorter Mastercard credit card lineup enhances customers’ ability to earn VIPorter points and redeem for flights through everyday purchases, while automatically granting VIPorter Avid Traveller benefits to both the primary cardholder and any secondary cardholders on the account.

Card benefits, along with the welcome offer, include waived annual fees for the first year and up to 70,000 VIPorter points — giving cardholders as much as $2,400 of total value in their first year. Cardholders can experience greater earning rates for points and personal travel benefits, including: BMO VIPorter Mastercard: Offering more value and opportunities to earn rewards and flights, cardholders earn 2 points for every $1 spent on Porter flights, 1 point for every $1 spent on transportation, gas, groceries, dining and hotel accommodations, and 0.5 points for every $1 spent on all other purchases.

Cardholders are automatically granted VIPorter Passport Avid Traveller membership benefits, including earning 6 points per dollar on Porter flights, dedicated airport check in, priority security screening, early boarding and priority re-accommodation for flight delays.

All cardholders also earn $1 of Avid Traveller Qualifying Spend for every $25 in eligible credit card spend, unlocking even more earning and travel benefits over time.

This card features an annual voucher for 35 percent off the base fare on any Porter flights for up to four people when spending at least $25,000 annually on the card.

BMO VIPorter World Elite Mastercard: Offering elevated rewards and travel experiences, cardholders earn 3 points for every $1 spent on Porter flights, 2 points for every $1 spent on transportation, gas, groceries, dining and hotel accommodations, and 1 point for every $1 spent on all other purchases. ❱ DMN.CA

Cardholders are automatically granted VIPorter Avid Traveller Venture membership benefits, where they can enjoy earning 6 points per dollar on Porter flights, dedicated airport check-in, priority security screening, early boarding, priority re-accommodation for flight delays, one complimentary checked bag, a carry-on bag when purchasing a Basic economy fare, and complimentary PorterClassic seat selection.

All cardholders will also earn $1 of Avid Traveller Qualifying Spend for every $25 in eligible credit card spend, unlocking even more earning and travel benefits over time.

This card features an annual roundtrip Porter companion pass that gives an additional passenger flying on the same booking 100 percent off the base fare of any Porter flight when spending at least $50,000 annually on the card.

“Porter elevates economy travel for all of our passengers and VIPorter enables loyal customers to enjoy complimentary benefits that enhance their journey even more,” said Edmond Eldebs, Senior Vice President and Chief Commercial Officer, Porter Airlines.

“While other programs let you reach frequent flyer membership levels based on how much is spent on their cards, the BMO VIPorter Mastercard lineup grants it automatically.

By partnering with BMO and Mastercard to enable cardholders to access Avid Traveller benefits immediately and earn VIPorter points even faster, our members can redeem for even more flights on Porter and our partner airlines. Porter is growing faster than any Canadian airline and opportunities to use points for meaningful travel experiences are growing along with us.”

“We are excited to collaborate with Porter and Mastercard to reimagine the travel rewards experience and deliver innovative and convenient ways for Canadians to achieve their personal and financial goals simultaneously,” said Jennifer Douglas, Head, North American Retail & Small Business Payments, BMO. “The BMO VIPorter Mastercard program empowers Canadians through a lineup of new credit cards that provides compelling value and rewards for everyday purchases helping them make real financial progress.”

“We are dedicated to providing Canadians with opportunities to enhance their everyday experiences and pursue their passions, especially travel. That’s why we are thrilled to introduce the new BMO VIPorter Mastercard credit card lineup in partnership with BMO and Porter,” said Diane Miquelon, Senior Vice President, Financial Institutions, Mastercard, Canada. “This new offering will allow Canadians to expedite their travel rewards journeys with everyday purchases, while always ensuring each transaction is secure, simple and seamless.”

The new cards enable VIPorter members

to build points quickly for redemption across Porter’s expanding North American network, as well as Porter’s growing list of global airline partners, currently featuring flights operated

by Air Transat and Alaska Airlines.

Highlights of Porter’s VIPorter program include: ❯ All members receive 100 percent of their eligible points for every flight purchased, including Basic economy fares, exclusive of taxes and fees. VIPorter is the only airline loyalty program in Canada to give members full value for every dollar they spend on flights. ❯ Accelerated earning and additional travel benefits for VIPorter Avid Travellers. Redeem for any seat across Porter’s expanding network, including points-only and cashplus-points redemption options, with no blackout dates. ❯ Earn confirmed PorterReserve flight certificates, starting at $3,000 in annual Qualifying Spend. Head Start allows members to carry over up to $3,000 in Qualifying Spend into the next year to accelerate their Avid Traveller benefits. ❯ Over 3,000 flight routings available for redemption with Porter, Air Transat and Alaska Airlines to North American and global destinations.

To help Canadians get started on their travel rewards journey, the annual fee for all BMO VIPorter Mastercards will be waived in the first year. BMO VIPorter Mastercard customers are eligible to earn 40,000 points and a 35 percent base fare discount Porter flight voucher during the first year. BMO VIPorter World Elite Mastercard cardholders can receive 70,000 points, a companion pass for 100 percent off a Porter base fare, and $1,000 in Qualifying Spend during their first year.

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As part of a commitment to provide Canadians with greater access to financial services across Canada, Canada Post recently had a national launch of the new Canada Post MyMoney™ Account.

CPC says Canadians deserve financial services that are fair, transparent and, above all, accessible. That’s why they say they are partnering with KOHO to introduce the MyMoney Account — a spending and savings account designed to better support your everyday needs. The account offers low-fee and no-fee plans that include cashback rewards on select purchases and other features and tools to help maximize savings: Earn market leading interest on the entire account balance; Get up to 2 percent cash back on select categories of purchases; Build credit history with credit-building tools; MARCH 2025

// 7 Deposit funds with the KOHO app or at Canada Post locations.

Post offices and post office clerks are experienced in handling financial services.

Canada Post handles millions of financial service transactions for customers each year including domestic and international remittances, money orders, prepaid reloadable cards and e-vouchers.

With its unrivalled national corporate and franchise retail networks, Canada Post says it is uniquely positioned to help meet the evolving needs of Canadians and newcomers, communities and Canadian businesses — especially those living in rural, remote and Indigenous communities. The new MyMoney Account marks a strategic shift toward products that are more aligned with Canada Post’s core financial services.

The MyMoney Account will be delivered with KOHO, a leading Canadian financial technology company that provides online financial services to more than one million users. By combining KOHO’s expertise with the CPC network, they are hoping to provide greater access to financial services for all.

deliver personalized, scalable campaigns that consistently drive measurable results — from enhanced digital engagement to significant in-store sales growth.

Leveraging Real-Time Data in a Shifting Economy Canadian retailers and brands are witnessing notable shifts in consumer purchasing behaviours and market dynamics. Advertisers must remain agile and responsive, making real-time promotional data a critical tool for developing effective digital marketing strategies. ShopLiftr’s advanced platform aggregates and processes promotional data from 350 retailers across North America, managing over 1.75 million promotions annually. This comprehensive database powers the creation of dynamic digital ads across display, video, and digital out-ofhome formats, delivering accurate, real-time deals that connect digital engagement to measurable offline sales. By leveraging this platform, advertisers can swiftly refine their pricing and promotional strategies, deliver flexible messaging, and drive significant instore sales even amid economic uncertainties.

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Canadian advertisers face a perfect storm of challenges in 2025: ongoing inflation, geopolitical business uncertainties, and rapidly shifting consumer behaviours are disrupting traditional retail strategies.

In this high-stakes environment, ShopLiftr’s innovative ad tech platform turns challenges into opportunities with unmatched datadriven intelligence and omnichannel reach.

The platform’s flexibility, adaptability, and speed are crucial benefits in this everchanging landscape. With comprehensive digital ad solutions, ShopLiftr seamlessly bridges the digital-physical retail divide through dynamic creative adaptability, real-time trade data integration, and precise targeting capabilities. By simplifying the complex world of modern retail advertising, ShopLiftr empowers Canadian advertisers to MARCH 2025

Dominating the Digital-to-Physical Retail Connection Advertisers have a significant opportunity to enhance their omnichannel presence by seamlessly connecting digital touchpoints both outside and inside the store. Retail media in Canada is projected to account for about 1 in 5 digital ad dollars in 2025, with a growth rate of 19.7 percent, more than double the growth in digital ad spending.

This rapid expansion is driven by an increase in ad inventory, including on-site ads, offsite ads leveraging first-party retail data, and in-store digital activations. Additionally, CTV viewership is growing faster than its ad spend, with CTV expected to account for 20 percent of media time per day by 2026.

ShopLiftr can play a pivotal role in this transformation by offering dynamic display, video, and DOOH (Digital Out-of-Home) ads that connect with consumers in realtime. By utilizing ShopLiftr’s adaptable ad tech platform and robust database, advertisers can ensure that relevant, accurate information is ingested and injected into ad units seamlessly, enhancing the consumer experience and driving engagement across all digital mediums. This approach not only maximizes the impact of marketing dollars but also ensures a cohesive and personalized customer journey. This integrated approach has demonstrated success in driving both online engagement and in-store sales, with clients experiencing product sales lift up to 8 percent or more.

By prioritizing digital signage and integrating first-party data for precise targeting and measurement, Canadian

advertisers can capitalize on the growing retail media and CTV trends. ShopLiftr’s solutions enable brands to stay ahead of the curve, providing a comprehensive strategy to connect with consumers both online and in-store, ultimately driving growth and engagement in the competitive digital landscape.

Effortless, Scalable Ad Creation with ShopLiftr’s SMART Platform ShopLiftr’s SMART platform optimizes digital advertising by tackling one of the industry’s biggest challenges: producing vast amounts of personalized, multi-channel creative content efficiently and cost-effectively. Their dynamic creative automation technology empowers advertisers to generate unlimited ad variations across any size or format, maintaining brand consistency while drastically reducing production time.

Proven through successful campaigns, including one that generated over 88,500 creative variations for a major beverage company and another that automated the weekly production of nearly 4,800 ad units (display and video) across 479 retail locations, ShopLiftr delivers unmatched efficiency and impact. With built-in features like real-time geotargeting, multilingual support (English, French, and Spanish), and dynamic creative flexibility, ShopLiftr enables advertisers to deliver highly targeted, personalized campaigns that drive measurable results on any screen, in any size, anywhere.

Making the Complex, Simple What sets ShopLiftr apart is their ability to transform complexity into opportunity. While their ad tech platform was designed to inspire and purpose-built to drive sales, it inevitably enhances operational efficiency. Whether adjusting prices in response to economic shifts, launching flash promotions to combat inflation, or optimizing hyperlocal offers, ShopLiftr’s technology provides the agility and flexibility needed to thrive in today’s volatile market.

With robust measurement tools tracking every campaign’s impact, from incremental sales to foot traffic increases, ShopLiftr delivers the actionable insights and proven results that Canadian brands and retailers need to maintain their competitive edge.

Ready to transform your advertising impact? Harness ShopLiftr’s proven technology to drive measurable sales lift, streamline operations, and deliver personalized campaigns that convert.

ShopLiftr, a cutting-edge innovator in digital advertising, fuels in-store sales for brands and retailers with a dynamic, data-driven platform.

Our approach renders accurate, personalized, and hyperlocal display, video and digital out-of-home ads in real-time, leveraging our extensive proprietary trade data to engage and inspire consumers.

DMN.CA ❰

MARKET RESEARCH

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Study on Franchise Marketing: Spotlight on Franchisor and Franchisee Marketing

STUDY: Exploring

As a valued partner of Constant Contact, we at the International Franchise Association (IFA) are proud to support their new research efforts to understand how franchise brands are helping their local franchisees achieve marketing success through corporate provided tools for social media, email, SMS and other strategic support. This is one of the incredible benefits of being in franchising — you’re in business for yourself, but not by yourself.

In this report, franchisors and franchisees were asked about their marketing priorities, autonomy, access, barriers to success, and training and support. Their answers reveal significant areas of improvement on communication between the franchisor and franchisee. These insights can improve understanding of how franchisors and franchisees can more effectively use marketing and technology together, improving outcomes across local businesses and their corporate counterparts.

Franchising spans more than 300 industries — from brands just getting their start to some of the most common household names — with reach around the world. Every brand differs in how they centralize and manage brand marketing for individual franchisees — yet it is a key component of brand success. After reading this report, it’s clear that the right mix of access, engagement and flexibility is paramount for franchisors to empower franchisees while still protecting the integrity of their brand.

We hope you find this research useful and look forward to staying in touch about ways to continually improve and strengthen the franchise business model and the countless people it serves.

Matthew Haller is President & CEO, International Franchise Association

❱ DMN.CA

ADOBE STOCK/ RAWPIXEL.COM

Franchise Marketing

MARCH 2025

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MARKET RESEARCH

BY MATTHEW HALLER

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ffective franchisor-provided marketing tools and training play a critical role in keeping franchisees aligned with the brand, ensuring consistency and competitiveness. Distinctions in their roles, however, give franchisors and franchisees different perspectives and needs when it comes to marketing technology.

Franchise marketing thrives on a strong partnership between franchisors and franchisees – strategically blending a corporate strategy with localized marketing efforts. Franchisors are tasked with the unique challenge of both maintaining market-wide brand reputation while also supporting local franchisee marketing goals.

Managing brand adherence and reputation across multiple markets is a top concern among franchisors, but they also recognize the necessity for customization at the local level. Failure to unify these needs at a strategic level can lead to inconsistent branding, inefficient operations, and missed opportunities for growth.

To better understand how franchises can work to bridge these gaps, we surveyed 239 US and Canada-based marketing decisionmakers working for the corporate headquarters of a franchise (referred to as “franchisors” throughout this report) as well as 264 US and Canada-based decisionmakers for a franchisee at the local level (referred to as “franchisees” throughout this report). Our data uncovers what both parties seek from franchise marketing and provides a roadmap for how they can drive success together.

1.0 Franchisor Priorities and Motivations Franchisors are prioritizing audience reach, increasing Return on Investment (ROI), and operational efficiency over franchisee marketing efforts and local collaboration. AI tool expansion and growth into new markets are also significant focuses for one-third of those surveyed, even more so than personalization and their datadriven strategy.

Franchisors may be leaning into AI due to its promising ability to provide scalable, cost-effective ways to drive growth, responding to a MARCH 2025

perception that personalization and data will require more effort, time, and individual coordination with franchisees.

Number of franchise units impacts top priorities.

Franchisors with fewer franchisee units (less than 20 locations) are focused more on growth and generating measurable results than larger franchisors, citing expanding audience reach (42 percent), increasing ROI (40 percent), and enhancing operational efficiency (39 percent) among their top priorities. However, priorities evolve as franchises grow, with larger franchisors placing more of an emphasis on the development of collaboration with franchisees. Mid-size franchisors (20 to 100 locations) prioritize integrating or expanding the use of AI (41 percent), improving support for franchisee marketing efforts (38 percent), and improving corporate and local team collaboration (37 percent). As corporate marketing goes further to “do it with them,” partnerships are fostered that benefit all parties.

Franchisors often prioritize national brand strategy over local marketing support, making collaboration with franchisees a lower priority. However, 95 percent of franchisees agree that it is or would be extremely helpful if corporate headquarters provided localized marketing support for their business.

1.1 Franchisor Priorities and Motivations: Adapting to Diverse and Regional Markets Although 60 percent of franchisors believe that their marketing strategy is highly adaptable to diverse regional and local markets, 40 percent see room for improvement. A clear tension exists along the control-to-freedom continuum: the more a franchisor locks marketing strategy from franchisee customization and input, the less adaptable it becomes to the unique needs of local and regional markets. Franchisors that delegate full marketing messaging responsibility to franchisees are significantly more likely to have a highly adaptable marketing strategy (79 percent) compared to those that allow moderate control (48 percent) and those allowing limited control (45 percent).

However, maintaining brand control is imperative. Franchisors must protect brand integrity while also empowering franchisees to execute their own marketing within well-defined guardrails.

Striking this balance ensures consistency while allowing for the local flexibility needed to drive engagement and growth. The more franchisors can do to streamline the process of creating from brand standards, the better.

The right technology improves marketing performance.

When franchisors provide the right technology to franchisees, their brands are better equipped to adapt to diverse local and regional markets. Franchisors who are very satisfied with their franchisee marketing technology stack are almost 2x more likely to have an adaptive, best-in-class marketing strategy (83 percent vs. 44 percent).

2.0 Franchisees Need Localized Marketing Tools Alongside the role national marketing plays in strengthening brands, franchises need effective localized marketing. Franchisees are owned and operated locally and have unique insights as well as a great individual incentive to plan local marketing campaigns.

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MARKET RESEARCH performance tracking and reporting systems, providing better training and support programs, and updating marketing technology for streamlined operations. While few franchisors feel that improving their own reporting and data at the corporate level needs to be prioritized, as demonstrated earlier in the report, franchisors are, in fact, eager to strengthen insight and analytics at the franchisee level. 46 percent report performance tracking and reporting systems are a top priorities for improving the management of franchisee marketing efforts. So while franchisors are generally confident in data and reporting at the corporate level, their concern lies in the ROI and brand consistency of local-level marketing.

However, it is critical for franchisors to provide the right tools to support their needs.

In executing localized marketing strategy, limited time and resources is a top challenge cited by franchisors, followed by challenges in tailoring campaigns and addressing regulatory issues.

Technology can play a critical role in extending the limited time and resources plaguing nearly half of franchisors. Incorporating dynamic localization technology, distributing templates, and implementing other tactics ❱ DMN.CA

Leverage technology to improve franchise marketing management.

Choose technology that gives franchisees the freedom to focus on local, relevant content and design without worrying about altering or diluting your branding and messaging. With certain tools, such as those of platforms like Constant Contact, franchisors get enterprise ready access, control, and flexibility that includes tools for social media marketing, email, SMS, events, and more in one marketing platform. Templates, automation, and AI content generation are catered to your business and free training is available to all end users.

2.2 Franchisees Need Localized Marketing Tools: Franchisees Want More Support Two-thirds (64 percent) of franchisees say that marketing their business is a high priority for them, another 32 percent say it is a moderate priority. But faced with limited resources and budgets, franchisees are looking for more marketing expertise, training, and support to execute on localized efforts.

designed to scale local efforts and make it easier for franchisees to execute their strategy can be a game-changer. Since inconsistent adoption of tools and templates by franchisees is mentioned as another significant challenge, finding the right mix of marketing tools that appeal to franchisees is necessary for success.

Elevate Franchisee Marketing with Better Data To improve the management of franchisee marketing efforts, franchisors prioritize stronger MARCH 2025

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MARKET RESEARCH

when compared to those who have less visibility into this data.

There is room for improvement in franchisor marketing technology and insight. Just 37 percent of franchisors surveyed say their tools are very effective at helping them track marketing performance. Similarly, only 40 percent report they have extensive ability to make effective marketing decisions based on the data they have from franchisees Gain visibility for better results. Having access to tangible data at the local level can be incredibly valuable to franchisors for formulating localized and corporate brand marketing strategies.

Those with complete visibility: ❯ Make more effective marketing decisions 63 percent vs. 25 percent say they can make effective marketing decisions based on data from their franchisees to a great extent. ❯ Can better track marketing performance 65 percent vs. 19 percent say their tools are very effective at tracking marketing performance. ❯ Are more satisfied with their technology 65 percent vs.

23 percent say they are very satisfied with franchisee marketing technology.

Franchisee Insight Despite technology limitations ranking low on their list of top challenges, only 39 percent of franchisees feel strongly that they are being provided with the right marketing tools to effectively address the unique needs of their specific location. This presents a clear opportunity for franchisors to enhance support, providing more tailored resources and strategies that empower franchisees to drive local success while maintaining brand consistency.

2.3 Franchisees Need Localized Marketing Tools: Marketing Tactics Franchises Value When providing marketing support to franchisees, corporate is focused on social media advertising, email marketing, and in-store promotions. This seems to track with which tactics franchisees value most for marketing their business. When comparing what franchisors are prioritizing to provide their franchisees and what franchisees find to be most effective for their business, we see franchisees placing more value on social media ads, email marketing, and personalized promotions than franchisors.

There is also a gap between corporate and local teams when it comes to the perceived value of influencer marketing, text/SMS, and local SEO, with franchisors putting more priority on these than franchisees. Typically, more advanced marketing tactics reside with franchisors, who undertake MARCH 2025

these marketing tactics for the mutual benefit of franchisors and franchisees.

Franchisee Insight Mature or declining franchisees (those that are fully developed with little room for expansion or experiencing reduced growth) are significantly more likely than others to report that in-store promotions have been most effective for their business (50 percent vs. 40 percent), while growing and established businesses are more likely to feel that social media ads are most effective. Digital channels such as social media are becoming more and more essential for emerging and growing franchises.

provide training, and incorporate best practices learned from other local contexts inside the franchise deteriorates.

Only 38 percent of franchisors report having complete visibility into their franchisees’ marketing and communications programs, but this group sees significant benefits

3.1 Measuring Success: Preferred Metrics to Gauge Performance For franchisors, metrics provide important feedback and help franchises pivot to match current market demands. Data-driven franchises change strategy and

3.0 Measuring Success Visibility into franchisee marketing efforts enables decisionmaking that is more closely aligned with marketing strategy. When franchisor visibility is poor, their ability to collaborate effectively with franchisees, share resources, DMN.CA ❰

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MARKET RESEARCH

tactics in response to measurable outcomes. Nearly three-quarters of franchisors say that sales is the most effective metric used to measure marketing success.

Customer retention is also high on the list at 65 percent.

Lead generation is highly valued by nearly half of those surveyed.

New and growing franchisors are slightly less likely than more mature franchisors to rely on sales as a metric for measuring success.

Instead, growing franchisors rely more heavily on engagement, measured by click-through and open rates. Meanwhile, the most mature franchisors rely on sales and customer retention more than their less mature counterparts.

4.0 Franchisor Control vs.

Franchisee Autonomy Centralizing marketing control at the corporate level protects brand consistency, provides access to advanced marketing technology tools, and ensures effective messaging across all franchisees. Virtually all franchisors (95 percent) say that maintaining control of franchisee marketing tools, branding, and messaging is important, with 62 percent describing marketing control as extremely important.

Franchisor control varies, with 48 percent granting franchisees a moderate level of autonomy and 39 percent full autonomy. Over half of franchisees (53 percent), however, believe their marketing is fully autonomous – suggesting that some franchisees may think ❱ DMN.CA

they have more control than they actually do and are unaware of backend guardrails.

Franchisee Insight Franchisees with full control over their messaging are significantly more satisfied with their level of marketing autonomy than those with moderate, limited, or no control. 61 percent of those with full control over messaging report being very satisfied, compared to just 38 percent of those with moderate and 20 percent of franchisees with limited or no control.

4.1 Franchisor Control vs.

Franchisee Autonomy: Set Controls to Ensure Brand Consistency Franchisors set marketing control levels to enhance performance and meet regulatory and compliance requirements across their franchise network. However, the primary reason for enforcing a specific level of control is ensuring brand consistency (59 percent).

Within specified guardrails, franchisees can customize their marketing, allowing them to add needed localization and context.

Franchisors know that their franchisees need room to adapt marketing messages to strengthen engagement with local audiences, so a balanced approach with sufficient autonomy to accomplish this is essential.

Franchisors weigh innovation with brand integrity as they delegate marketing control.

Marketing control at the corporate

level is common, but some franchisors also permit part or full marketing autonomy for franchisees. Those that allow full marketing control for their franchisees are significantly more likely to be doing so to encourage innovation and creativity (50 percent) and manage resource availability (50 percent) than those that allow less control. Those that allow limited or no control are heavily focused on ensuring

brand consistency (71 percent) and driving results and performance (65 percent).

4.2 Franchisor Control vs.

Franchisee Autonomy: Balancing Autonomy and Control Fuels Franchisee Empowerment Overall, a majority of franchisees are confident that they have enough control over their marketing to succeed, showing MARCH 2025

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MARKET RESEARCH automation campaigns continue to grow in relevance.

they are generally happy with the autonomy provided through corporate-given marketing tools.

Franchisee Insight Notably, franchisees that perceive more control and autonomy are more confident they have the leverage needed for creativity, innovation, and brand knowledge, while safeguarding brand consistency as a whole. This suggests that striking the right balance between control and autonomy not only strengthens franchisee confidence but also fosters creativity, innovation, and a deeper understanding of the brand. When franchisees feel empowered within clear brand guidelines, they are better equipped to drive local engagement while maintaining overall brand integrity.

MARCH 2025

4.3 Franchisor Control vs.

Franchisee Autonomy: Use Templates to Boost Consistency and Efficiency To support franchisee productivity and maintain brand consistency, templates and pre-built campaigns are a popular marketing control that give franchisors direction over marketing messaging.

Franchisors most commonly supply their local franchisees with social media post templates (61 percent) and email templates (60 percent). One in five (21 percent) provide franchisees with automation templates to direct customer journeys. With time constraints and resources a major issue among franchisees, automation features will likely become more important to marketing teams over time as customer touchpoint-triggered

Franchisee Insight Ninety-one percent of franchisees say their business would benefit from more frequent updates to marketing templates and campaign options provided by their franchisor. Top-tier brand consistency requires fresh marketing templates and campaigns that are ready for franchisees to deploy. Franchisees are eager to leverage these templates, however just 35 percent of franchisors update their marketing templates and campaigns weekly. 41 percent report updating monthly and 19 percent update quarterly.

Without frequent updates, franchisees may feel restricted in their pursuit of local marketing goals and building channel engagement effectively.

5.0 Investing in Marketing Technology to Stay Competitive New marketing technologies incorporating AI and automation, advanced analytics, and other features are encouraging franchises to consider upgrades and new martech investments.

A 62 percent majority of franchisors say investment in new marketing technology is very likely in the coming year and a third (33 percent) agree that it is somewhat likely. As marketing strategies evolve in alignment with organizational goals, new features become more relevant and offer the prospect of enhanced outreach and measurement capabilities.

Both types of stakeholders — franchisors and franchisees — see value in their existing marketing technologies, with franchisors reporting slightly higher rates of satisfaction with their franchisees’

DMN.CA ❰

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MARKET RESEARCH (94 percent) of franchisors are more comfortable allowing franchisees to use AI for marketing if corporate can oversee or control AI outputs.

Franchisors feel that using AI increases efficiency and automation, enhances content creation, and provides better insights through advanced analytics in their marketing efforts.

Franchisee Insight Franchisees have a high appetite for AI. 87 percent of franchisees agree that more extensive use of AI tools would improve their marketing performance. Franchisors who implement new automation technologies will likely find broad support among franchisees.

martech than the franchisees themselves (40 percent vs. 34 percent say they are very satisfied).

Generally, the tools franchisors provide are highly valued by franchisees. The most common technologies provided by franchisors to their franchisees are social media scheduling tools, email automation tools, CRM systems, and analytics and reporting tools. These align with the tools that franchisees find to be most effective.

5.1 Investing in Marketing Technology to Stay Competitive: Franchisee Success Requires Flexible, User-Friendly Martech For marketing tools to help franchisees achieve engagement goals, franchisors need tools offering the right combination of access, control, and flexibility.

Brand consistency is a need weighed against flexibility and freedom for franchisees.

Martech with limited flexibility for marketers locks marketing operations and introduces friction in the franchisor-franchisee relationship, rather than streamlining and strengthening collaboration. The data shows franchisor support for improving system flexibility and making ❱ DMN.CA

automation tools easier for franchisees to use.

Reducing marketing tool complexity would also help nearly half of those surveyed — specifically, simplifying automation. Implementing automation and AI tools augments team productivity and improves marketing efficiency.

5.2 Investing in Marketing Technology to Stay Competitive: AI-Driven Marketing Improves Franchisee Results With AI marketing technologies developing and evolving quickly, franchisors want to empower franchisees as long as appropriate controls and oversight are implemented. The vast majority

5.3 Investing in Marketing Technology to Stay Competitive: Corporate Support for Franchisee AI AI adoption is still early and growing among franchises, but most franchisors provide franchisees with AI support. In fact, only 13 percent of franchisors currently do not provide support in the use of AI for franchisees.

Since AI tools have demonstrated potential for marketing use, franchisors are on board with encouraging franchisees to use AI and are ready to share knowledge and lessons learned. Over half (54 percent) of franchisors say they monitor and analyze AI-driven marketing performance while 50 percent allow flexibility for franchisees

to experience AI tools of their choosing. Nearly half share best practices for AI-driven marketing with their franchisees.

Franchisor oversight is common when it comes to the use of AI tools. While over one-third (36 percent) of franchisors allow franchisees free rein over their use of AI tools, nearly half only permit tools that have been pre-approved.

Another 10 percent impose limited access under corporate oversight, and just 5 percent prohibit AI tools entirely.

Empowering Franchisees with Smart Martech Drives Local Success and Brand Integrity When franchisors empower franchisees through martech that emphasizes ease-of-use and sufficient support, franchise marketing adapts to local conditions while protecting the overall brand. What franchisees need to be successful is for franchisors to: ❯ Establish smart guardrails ❯ Provide relevant training ❯ Share updated templates and automations for franchisees to customize Franchisors should collaborate with franchisees in ways that promote partnership and encourage creativity and innovation. Technology that empowers franchisees instead of constraining them positions franchises to stay competitive in their local markets. Franchisor control and reporting is an essential facet of franchisee marketing and is enabled through effective access levels and backend functionality.

STUDY METHODOLOGY. Using a custom online questionnaire, Constant Contact, in partnership with Ascend2 Research, surveyed a total of 503 marketing decision-makers working for franchisors (239 participants) and franchisees (264 participants) throughout the United States and Canada. Individuals surveyed represent businesses across all industries and company sizes. The survey was conducted in January 2025. Constant Contact simplifies digital marketing for franchisors with an all-in-one platform for email, social, landing pages, and more. Whether you’re an emerging brand or an established system, franchisors decide how much control to maintain at the top while giving franchisees flexibility for local marketing success.

MARCH 2025

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INSIGHTS

STILL MARKETING TO AMERICANS? Here are Direct Mail Trends in 2025 T

he mailing industry in 2025 stands at a crossroads. We’re all familiar with the challenges facing us, from chronic delivery issues, implementation of the Postmaster General’s Delivering for America strategic plan, and of course, continued postage rate increases.

On the other hand, there are even more reasons for optimism. As a $38.2 billion industry, direct mail is an effective marketing, branding, and fundraising channel. It provides more opportunities than ever before to help marketers and non-profits stand out from the glut of digital messaging that is so pervasive.

According to USPS, in Fiscal Year 2024, controllable losses were reduced by $434 million, while revenues increased both for First-Class MARCH 2025

Mail (by 3.4 percent) and Marketing Mail (by 1.9 percent). And in study after study, marketers and printers alike agree — mostly — on how they’re adjusting the craft of direct mail to make it more affordable while, at the same time, producing mail that gets the attention of customers and moves them to respond.

For example: ❯ In a 2024 Winterberry Group survey, 81 percent of brands plan to increase mail spending in 2025 ❯ A recent SeQuel Response report found that 72 percent of consumers engage with mail each week – up three percent from 2023 ❯ 84 percent of marketers in Lob’s 2024 study said that direct mail delivers the best ROI

ADOBE STOCK/ NIKO

BY PAUL BOBNAK

DMN.CA ❰

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INSIGHTS

1. Optimize Your Data Today, it’s no longer an option: you need to get the most out of your direct mail spend. That starts with data, your single greatest asset. This has been true for decades, but given increased postage and printing costs, getting your data right is no longer just one more item on your to-do list; it’s at the top.

When you invest in solutions, you save money over both the long and short run of your direct mail campaigns. There are a number of ways to become more efficient in your processes and keep your costs under control.

To keep your costs from controlling you and produce datadriven messaging with your mail, use these tools — and use them often — for these important tasks: Dedupe your lists, end any internal silos, and run them through CASS (Coding Accuracy Support System) and NCOA (National Change of Address) before presort. Segment and target your audience(s) with AI-driven testing and modeling strategies that analyze and identify high-value cohorts. Dig into that audience data and predict which segments are most likely to respond to specific messages. Personalize messages, offers, headlines, and images on your mail pieces with variable data printing (VDP).

2. Review Your Mail Formats Have you noticed that some direct mail seems to be getting smaller?

That flat, folded self-mailer, or envelope that you’ve been mailing for years may not be as affordable as it once was - or as effective.

Think about how you can re-work the size and complexity of your current campaign packages and elements. Many economical options exist for design, printing, processing, and postage. The savings resulting from reduced paper and postage costs may increase the ROI on your campaign.

Here are some examples: ❯ Shrink your catalog trim size from full-size to slim-jim while maintaining page count ❯ Transform a letter package or ❱ DMN.CA

ISTOCK/ SAKORN SUKKASEMSAKORN

Considering all the ways that mail has been evolving recently, let’s look forward to how to incorporate the changes that will make your mail more powerful this year and beyond.

flat into a folded self-mailer Replace a folded self-mailer with a jumbo postcard

mail tracking, such as delivery date notifications and better workflow planning.

3. Tune Up for Automation and Tracking Digital campaigns run at the push of a button, so why can’t mail? When you shift from resource-heavy manual processes to automation tools, you save time and money. Your focus also shifts to achieve additional improvements in performance every step of the way.

Making changes to an existing template or uploading a new mailer to a completely automated CRM system doesn’t have to be complicated. With a laser-like focus on data, and the insights AI can give you, your automation can operate “always on.” At advanced levels, data can flow from pointof-capture events or triggers into your CDP or CRM for printing and entry into the mail system.

With USPS Seamless Acceptance, mail owners’ use of electronic documentation and Intelligent Mail barcodes (IMb) streamlines mail entry verification as well as makes postage discounts available. And Informed Visibility provides numerous benefits for

4. Utilize USPS Incentives For the first time in a few years, USPS did not file a request for a January increase in postage rates.

This is a welcome step, as postage is the biggest component of mail campaign costs. With a rate hike still likely to be scheduled for July 2025, it’s a good time to consider using two programs to save additional money on postage this year.

Once again, USPS is offering companies incentives for mail campaigns that incorporate new and developing marketing and printing technologies. The goal is to help marketers and printers to create high-value mail that drives engagement and increases ROI. For 2025, the 5 USPS Promotions are: ❯ Integrated Technology (3 percent Discount) ❯ Tactile, Sensory and Interactive Engagement (4 percent Discount) ❯ Reply Mail IMbA (3 percent Discount for Static IMb, 6 percent for Serialized) ❯ Continuous Contact (3 percent Discount)

❯

❯

First-Class Mail Advertising (3 percent Discount)

Campaigns may qualify for two Add-On Promotions (Informed Delivery and Sustainability), each with a one percent discount, but only when stacked with one of the five main promotions listed above.

The Mail Growth Incentives program covers both Marketing Mail and First-Class campaigns mailed in CY 2024. The goal is to drive higher sustained usage of mail by large mailers, as well as encourage higher volume by the rest. Mailers can earn credits of 30 percent on future volume when they exceed their 2024 volume baseline.

These trends demonstrate that direct mail is a vital entry point for marketers that is changing to meet today’s demands. It uses digital technologies to streamline processes, reach audiences with personal, relevant messages across channels, and provide a physical and authentic way to experience a brand.

PAUL BOBNAK creates written and video content for mailing.com, Lob, and other companies. He also speaks about direct mail at marketing and printing industry events, webinars, and groups.

This article originally appeared in the January/ February, 2025 issue of Mailing Systems Technology.

MARCH 2025

CMMC CANADIAN MUSEUM MARKETING CONFERENCE June 6, 2025 Canadian Canoe Museum, Peterborough, On ATTEND: This newly-minted Conference’s mission is to expand and enhance the ability of Canada’s museums, galleries, historic sites and cultural organizations to meet the challenges in today’s sector.

If you’re looking for ways to increase membership, multiply visitor numbers, offer more visual or digital and virtual exhibits, sign partnerships with local and regional sponsors and business partners, ramp up merchandise sales, get more brand exposure in press, social media, radio, TV, YouTube and more…be sure to bring your team to this Conference. Plus…we have special rates for team registrations and appropriate rates for both volunteer-run or skeleton-staffed facilities.

Opening Keynote Speaker: Olivier Carré-Delisle, Vice-President, Digital, Public Affairs and Commercial Operations, Ingenium Added opportunities: • Pre-conference one-day workshop • Hands-on marketing and communications skills building • Plus a behind-the-scenes tour of the new museum • Outdoor camping skills workshop with Canoe Museum guide • And much more. Full details to be revealed shortly.

sponsored by:

To Register or Get More Information ATTEND FOR AS LITTLE AS $150.00 (for volunteer-run facilities).

ATTEND AS A GROUP & SAVE YOUR BUDGET SPECIAL RATES FOR SMALLER MUSEUMS, GALLERIES, CULTURAL CENTERS, ATTRACTIONS…Find out how you can save as a duo or group registration.

See the full speaker roster and sign up now to save with Early Bird Registration discounts for single, dual or team registrations.

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ADOBE STOCK/ MILKYWAY

MARKET RESEARCH

North American Program Owners Focus on Enhancing Loyalty & Customer Engagement

L

oyalty programs remain a cornerstone of marketing strategies in North America, with 70.3 percent of program owners reporting satisfaction.

However, while satisfaction levels are relatively high, persistent challenges underscore the need for refinement and innovation in many programs.

Key sources of dissatisfaction include poor integration with the overall customer experience, cited by 81.8 percent of program owners, and a lack of differentiation in competitive markets, highlighted by 54.5 percent.

These challenges reflect the ongoing complexity of designing loyalty programs that align seamlessly with broader business objectives while standing out in crowded industries.

Satisfaction also arises from the

❱ DMN.CA

ability to foster deeper customer engagement (62.8 percent) and gather valuable customer data (58.3 percent). These factors highlight the immense potential of loyalty programs to transform customer relationships and deliver measurable results.

5.3X ROI reported among those with positive ROI North American loyalty programs deliver positive ROI and foster deeper customer engagement. For those satisfied with their loyalty initiatives, the benefits are evident.

Programs that drive repeat business, highlighted by 67.3 percent of respondents, deliver tangible value. Moreover, 86.1 percent of loyalty program owners report achieving a positive ROI, with an average return of 5.3X. What’s more, North American businesses have increased

investment in loyalty programs with plans for major overhauls.

Spending on loyalty initiatives also underscores their growing importance, with 29.1 percent of the marketing budget in North America allocated to loyalty programs. This investment reflects a clear recognition of the critical role these programs play in driving long-term business success.

Despite current satisfaction levels, 57.2 percent of program owners plan to revamp their loyalty programs within the next three years, and 53.7 percent intend to switch to a different platform. These trends highlight a strong commitment to addressing

ongoing challenges and adapting to the market’s evolving demands.

Loyalty Managers Recognize the Potential of AI to Drive Efficiency and Engage Consumers in North America With the rise of AI technologies in areas such as customer support, personalization, and data analysis, the adoption of AI in loyalty programs is gaining momentum.

Currently, 36.0 percent of North American companies use AI in their loyalty programs, with an additional 49.2 percent planning to incorporate it in the near future. This shift toward AI-driven strategies reflects a growing recognition of AI’s potential to enhance productivity, improve customer engagement, and optimize program performance.

Moreover, AI’s capacity to automate routine tasks and MARCH 2025

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MARKET RESEARCH

Customization Boosts Engagement and Loyalty in Rewards Programs The impact of customization on customer engagement is undeniable: 83.1 percent of program owners in North America agree that allowing members to customize their rewards positively influences engagement. Additionally, 81.1 percent of consumers prefer to shop with brands that offer this level of personalization.

However, not all companies have acted on this insight. While 56.5 percent of programs already leverage customization, only 30.4 percent of businesses plan to adopt it in the future. With 79.9 percent of organizations globally planning to launch programs with reward customization within the next two years, the competition is heating up.

generate deeper insights allows loyalty managers to focus on strategic initiatives, such as improving customer experience and refining program offerings.

Consumers are also showing increasing interest in AI-powered loyalty programs, with 34.0 percent more likely to join programs that leverage AI. This underscores AI’s ability to boost participation by enhancing personalization and delivering tailored experiences. Thirty-four percent of consumers would be more interested in joining a loyalty program if it used AI. Key Motivations and Engagement Channels for Loyalty Program Members To better understand customer behavior and improve loyalty strategies, it’s essential to identify the key factors driving customers to join and engage with loyalty programs. In both Canada and the U.S., the primary motivation is earning rewards, discounts, or cash back on future purchases.

Free shipping and returns are particularly compelling in the U.S., while personalized offers and exclusive benefits are important incentives for attracting customers in both regions.

Mobile is the leading channel for engaging with loyalty programs in both countries, highlighting the importance of mobile optimization. In Canada, plastic cards slightly surpass digital cards, while in the U.S., both card types trail behind email, text, and website interactions.

The Growing Demand for Flexible and Lasting Loyalty Program Rewards What makes North American customers join a loyalty program?

Loyalty members in Canada and the U.S. prioritize flexibility and lasting benefits. Both Canadians and Americans value more earning opportunities and nonexpiring points, as well as flexible redemption options such as discounts, gift cards, and exclusive experiences. These trends highlight the growing demand for loyalty programs that offer personalized and enduring rewards.

What makes North American customers join a loyalty program?

MARCH 2025

Canada 1. Earning rewards, discounts, or cash back on future purchases (78.3 percent) 2. Receiving free shipping and/or free returns (36.0 percent) 3. Receiving personalized offers or rewards (35.9 percent) U.S. 1. Earning rewards, discounts, or cash back on future purchases (73.7 percent) 2. Receiving free shipping and/or free returns (48.0 percent) 3. Receiving personalized offers or rewards (34.2 percent) 4. Accessing rewards that are available at partner retailers (26.0 percent) Getting access to member- only products and benefits & early access to sales and exclusive discounts (24.0 percent) Building stronger connections with members begins with understanding what they truly value. Here, we highlight three key features that resonate strongly with both members and brands in the North American market.

Missed Opportunities for Loyalty Program Owners to implement point pooling.

In North America, 70.4 percent of consumers prefer to shop with brands that allow them to share loyalty accounts with friends or family to combine and pool

points, reflecting a strong interest in collaborative earning and spending. However, only 29.8 percent of consumers currently share their loyalty accounts, and 38.2 percent would use this feature if it were available, highlighting a significant gap between consumer demand and program availability.

Despite strong consumer enthusiasm, many loyalty programs in North America have yet to adopt point pooling and family account features, leaving a significant gap between customer demand and program offerings. While 48.4 percent of loyalty programs in the region currently offer account sharing, only 27.9 percent of businesses plan to implement it in the future.

This represents a critical missed opportunity for brands to meet consumer preferences and stand out in a competitive market.

Fully 70.4 percent of consumers would prefer to shop with brands that allow them to share loyalty accounts with friends or family to combine and pool points.

The demand for account sharing is evident, but businesses may wonder if the benefits outweigh the costs. Encouragingly, 7 out of 10 loyalty program owners who already offer this feature report net positive results. Allowing family and friends to earn and redeem rewards collectively can enhance emotional engagement and drive greater program participation.

Gamified Data Collection Drives Higher- Quality Consumer Insights Data collection is often a sensitive topic for consumers, but gamifying the process can make them more willing to share information. In fact, 45.6 percent of consumers prefer sharing details like birth dates and hobbies through games or quizzes rather than traditional forms.

In North America, 40.6 percent of companies currently use gamified data collection in their loyalty programs, and 40.3 percent plan to implement gamification mechanisms for data collection or enrollment within the next two years.

Gamified data collection not only boosts consumer engagement but also yields more reliable and valuable insights. According to program owners, 71.9 percent believe gamification improves data quality, and 73.0 percent feel the benefits outweigh the costs.

As gamification becomes more widespread, it promises a more engaging and effective way to gather consumer information.

With more companies adopting gamification, we anticipate a shift in data collection — transforming it from a simple insight-gathering tool into a core component of customer engagement and loyalty strategies.

THIS ARTICLE is based on the 2025 Global Customer Loyalty Report, North American Version, from stratLX, in collaboration with antavo, AI Loyalty Cloud.

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CREATIVE

ISTOCK/ YULYA BORTULYOVA

Create Your Own Dynamic Handwriting Font to Boost Mass Mail Response

BY DEL WILLIAMS

N

othing adds to a letter campaign more than a nice, personalized note, in the author’s actual handwriting. Now imagine adding the personalized note using high-speed, low-cost mailing equipment.

Direct mail professionals understand the power of predesigned fonts that simulate handwriting and make it appear that letters have been personally addressed. Research shows mailers designed to appear handwritten are 300 percent more likely to be opened compared to standard printed envelopes. These are popular with companies eager to demonstrate a more personal and direct touch, such as financial, insurance, religious, political, and non-profit organizations.

Traditionally these fonts are selected from a handful of predesigned or custom cursive or hand printed options. While the fonts may be custom, each individual character used to remain unchanged from the last. Now, there is a new twist on this option: dynamic, customized and unique fonts created by the user combined with randomization that emulates natural variations in handwriting.

This approach provides the extra level of personalization to catch the eye of mailing recipients.

For years, when campaigns used traditional handwritten-style fonts, recipients would tend ❱ DMN.CA

to perceive the mail as more authentic and personal. Studies suggest that incorporating such elements can increase response rates by up to 50 percent, as people feel more valued and are more likely to act on personalized mail.

Still, some companies employ pen-plotters and even actual hand writers with ballpoint pens to reach the next level of realism and attain the highest response rates.

The challenge is that traditional mass mailings essentially use static handwriting fonts that lack the authenticity of actual handwriting.

The consistent uniformity of any pre-designed font indicates that it is computer-generated.

Customized and more realisticlooking handwriting fonts for addressing can attract attention, increasing both open and response rates.

“There are reasons to generate your own dynamic font that stands out from every generic font,” says David Loos of MCS Inc, a company that designs, manufactures, sells, and supports industrial inkjet imaging, tracking, and inserting systems for the mail manufacturing industry. “These new dynamic fonts provide the authentic look of real handwriting but can be printed at full speed (and low cost) of high-speed production presses.”

MCS provides the software to process dynamic randomized handwriting and cursive fonts for

addressing mailers with MyFont exclusively from Think Ink, an optional feature that works with MCS’ Raptor inkjet software.

MCS offers the largest family of inkjet technology, including the Falcon Eagle, Osprey, and Condor, all driven with one platform, MCS’ Raptor software. All MCS products can drive multiple print heads, even if they use different technologies like piezo and thermal ink jets, that can deliver a variety of water-based dye pigment, polymer pigment, and UV inks.

The MyFont technology allows organizations to use the actual handwriting or cursive style of anyone, including the sender. After capturing a representative writing sample, a unique font is generated.

During the print process, the technology goes a step further by making the font dynamic and randomizing the characters by slightly altering one of four to create a more “natural” look while printing at extremely high speeds.

According to Loos, printing addresses in ballpoint blue ink can further increase direct mail response rates. Alternatively, organizations can shorten the production run and save substantial postage costs by running MyFont in color ink simultaneously while printing an Intelligent Mail Barcode (IMB) in black ink.

In the high-stakes world of mass

mail manufacturing, the inclusion of dynamic personalization of handwriting fonts, inks, and mail features is part of a broader trend to increase response rates. Now, with the industry increasingly adopting a hyper-personalized approach, matching the various component parts of a mail piece — addressing, envelope, messaging, attached cards, etc. — is even more critical.

Hyper-personalization in direct mail is a strategic approach where marketers leverage past purchase records, browsing habits, demographic details, and other available data to customize messages and offers for individual recipients. A hyper-personalized strategy that includes the fonts and addressing can significantly improve the efficacy of marketing endeavors by increasing open rates, click-through rates, and ultimately sales.

Organizations can acquire their own MyFont dynamic handwriting and cursive fonts by purchasing the MyFont Handwriting or MyFont Cursive license for MCS Raptor software. The MyFont option can be used with any MCS inkjet system. One license per machine is required. Organizations will need to purchase a font package with various options including custom fonts.

DEL WILLIAMS is a technical writer based in Torrance, California.

MARCH 2025

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Resource Directory 10-1634-DCM-Resource Directory-OL.pdf

DATA ANALYTICS

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Mailing Lists

NCOA

Date:

July 4, 2013

AD:

Carter

Client:

Cleanlist.ca

AM:

Sinclair

Docket:

3540

Version:

F6

Media:

Direct Marketing Magazine

MelissaDirect.com Application: Print, 4x4.325", 4C 1-800-MELISSA

Sales Leads

PLEASE NOTE This file has been optimized for its intende application only. For uses other than inten please contact Seed for alternate formats.

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Fueling eCommerce Advantage and Business Growth with Clean Customer Data

BY GREG BROWN

F

or online retailers, success hinges on data — which means accuracy is everything. Customer profiles must feature correct address details and location-based insights, providing the foundation for etailers to personalize experiences, refine marketing strategies, and uncover new growth opportunities.

Address accuracy plays a bigger role than some may think. A clean, verified address database ensures smooth deliveries, prevents costly shipping errors, and optimizes marketing efforts. Addresses have impact and high-quality address data is a must-have for ecommerce brands in 2025.

Accuracy drives customer satisfaction and sales Every online purchase is a chance to reinforce trust and customer loyalty based on an excellent shopping experience. How easy is checkout? After the customer clicks ‘buy,’ will the order arrive as expected? Errors in address data create issues that can quickly damage a brand’s reputation, leading to shipping mishaps, lost packages, and ultimately, unhappy customers.

Address verification and autocompletion tools prevent this, enhancing the online shopping process by ensuring addresses are correct in real-time and suggesting only valid address options. Data entry is streamlined and ensured to be correct as it enters the front door of an etailer’s data system.

This saves time for customers and ❱ DMN.CA

reduces costs for retailers, who avoid the expenses associated with re-deliveries, returns, and address correction fees. Checkout is smooth and efficient — a key factor in shopping sessions that more often lead to purchases and increasingly satisfied customers.

Customer satisfaction is a worldwide challenge Selling internationally? Then you know how tricky address formats can be. Each country has its own address structure and strings of data. Distinct address formats and discrepancies can lead to logistical headaches and expensive shipping errors.

Even minor inconsistencies can cause expensive delivery issues.

To overcome these challenges, retailers must adopt tools that standardize address data according to regional specifications, ensuring smooth and efficient cross-border deliveries.

Address verification creates impact beyond logistics and plays a crucial role in global fraud prevention. Real-time address validation powers fraud prevention, helping ecommerce businesses meet KYC standards with identity verification and the flagging of high-risk transactions.

With the addition of geolocation and name-matching tools, etailers can further extend online security measures while keeping the shopping experience seamless.

Cutting costs with smarter address data Bad address data isn’t just a

headache — it’s expensive.

Incorrect addresses lead to undelivered packages, increased shipping fees, and hours spent correcting mistakes. Address validation solutions can dramatically cut these costs by preventing unnecessary returns and avoiding correction fees.

Etailers can optimize shipping methods using tools like a Residential Delivery Indicator (RDI), a means of categorizing addresses (i.e., residential vs business) so shippers can choose the most cost-efficient type of shipment.

Operations can be further streamlined with the integration of address verification capabilities into platforms like CRM, ERP, and supply chain management systems. From order processing to warehouse tracking, accurate address data keeps everything running smoothly, saving money while improving service.

Clean address data improves marketing, customer engagement, and fraud prevention Clean customer data also helps online businesses fine-tune their marketing campaigns, ensuring promotions reach the right audience. Accurate address data is a game-changer in marketing operations, proving particularly effective in reducing wasted spend on undeliverable mail.

Geocoding technology increases this value by helping brands target customers based on location.

Etailers can ensure their ads and

offers align with regional demand, improving campaign results based on smarter targeting that can even direct shoppers to their nearest store or service center. When businesses use verified address data to improve engagement, they see better conversion rates and stronger revenue growth. Frontline fraud prevention also benefits from geo-verified data, which creates an extra layer of security by confirming that transactions and account activities align with a customer’s known or expected geographic behavior.

Consider address data a strategic asset Retailers face a long list of challenges in supporting their customers, and many of them stem from bad address data. Whether deliveries failed or marketing was ineffective, incorrect addresses waste time, money, and customer goodwill. In 2025, investing in address validation isn’t just about fixing errors—it’s about building a business that runs efficiently and cares about what keeps customers coming back.

Delivery delays and returned packages are costly, but losing customer trust is even worse.

Brands that commit to data quality are plainly better equipped to provide a frictionless shopping experience, strengthen customer relationships, and thrive in an increasingly competitive ecommerce universe.

GREG BROWN is Vice President, Global Marketing, Melissa.

MARCH 2025

ISTOCK/TARIKVISION

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Ratio of Website Visitors to In-Store Visits s Augu

6.0

t ‘20

h Marc

‘21

h Marc

5.0

‘22

4.7

4.0

3.0

2.0 1.9

2.0

1.0 1.0

2019

Nigeria

Retailer A

Toronto CSD by Dissemination Area

2020

2021

March

January

February

October

December

November

July

September

May

June

August

April

March

January

February

December

November

July

August

October

September

May

June

April

March

January

February

December

November

July

August

October

May

June

September

India

April

March

January

China, People’s Republic of

February

0.0

Dominant Country of Origin

2022

Retailer B

Changing Demographics

Online & Offline Habits

With an aging population, increased immigration, relocation and changing commuter habits, our suite of demographic products help you stay on top of the changes – nationally, by neighbourhood, and everywhere in between.

EA’s ground-breaking mobile movement and web behaviour databases not only help you keep track of the “clicks versus bricks”, but know which Canadians are driving these trends nationally and locally as those behaviours change.

Deposits by Region: Penetration vs. Wallet Share

Vulnerability Index | Social Vulnerability Unemployment Rate

49.1% Index:188

124 SOCIAL VULNERABILITY INDEX*

Community Involvement

11.7% Index:117

Perceived mental health is fair or poor

People know well enough to ask favour (none)

51.5%

Index:197

Deepen and Maintain

Index

"You cannot be too careful in dealing with people"

14.9%

Strategy: Acquisition

91

Wallet Share

Household Size -1 Person

24.6%

Index:118

Index:235

Deepen Relationships

Develop New Strategies Close relatives (0-2)

Close relatives in same city (0-2)

34.7% Index:156

47.1% Index:110

Close friends (0-2)

33.4% Index:124

Close friends in same city (0-2)

29.9% Index:107

Product Penetration (HHs that Hold Product)

Attitudes, Mindsets, Social

Finances

Environmental concern, privacy, trust and social connectedness.

Psychographic indicators have shifted and Canadians’ social circumstances have changed. It’s never been more important to look at these indicators and map them to different populations.

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