Following a $500 million deal between Scotiabank and Canadian Tire in May that saw the latter sell a 20% stake in its financial services business, the two companies are forging ahead with their partnership, this time in the loyalty marketing sphere.
I think it’s a major evolution of the Scene program from being just a loyalty and entertainment-based program, to now becoming Canada’s largest and fastest growing entertainment and lifestyle loyalty program
Duncan Fulton, Canadian Tire
The Scene loyalty program, co-owned by Scotiabank and Cineplex Entertainment, will now include Sport Chek stores across Canada. Customers will earn 1 Scene point for every dollar they spend at Sport Chek, and will be able to spend Scene points to earn discounts on Sport Chek products.
Duncan Fulton, CMO for Canadian Tire’s Mark’s and FGL Sports brands, said the partnership was born out of overlapping audiences for Sport Chek, Cineplex and Scotia.
“You’ve got 6 million [Scene] customers, the large majority of whom are under the age of 40 and 45, who are big in entertainment and lifestyle. That’s the exact wheelhouse for Sport Chek’s customer,” he said.
“It’s a different, compelling value proposition,” he added. “If you look at retail today, everything is 10-20% off. No one gets out of bed for 20% off. Offering a free movie, tied to a pair of shoes for a three-day only promotion — that’s the kind of thing that gets people out of the house and into the store,” said Fulton.
All of Sport Chek’s four million customers will have the opportunity to sign up for Scene membership and earn points towards free movie tickets or deals on Sport Chek merchandise. Though there will be some duplication, the three companies expect Scene’s userbase to grow substantially as Sport Chek’s customers join.
“I think it’s a major evolution of the Scene program from being just a loyalty and entertainment-based program, to now becoming Canada’s largest and fastest growing entertainment and lifestyle loyalty program,” said Fulton.
John Doig, chief marketing officer for Scotiabank, said the company’s loyalty research had shown Scene members were looking for new ways to use their points, and that the lifestyle category was particularly appealing.
Having added a new partner for the first time, Scotiabank and Cineplex are looking for more companies to add to the program in lifestyle and other categories that appeal to its young userbase.
But Doig said we shouldn’t expect Scene to become a gigantic loyalty coalition. “We’re going to be very selective with who comes on board,” he said. “We’re not looking to add 200 companies here.”
Canadian Tire clothing retailer, Mark‘s, had previously run a one-time campaign with Scotiabank, offering 1,000 Scene points to customers who bought two pairs of jeans. Fulton said Canadian Tire’s other brands will be watching for similar opportunities in the future, but no other long-term partnerships are currently in the works.
Canadian Tire has been investing heavily in untried co-marketing ventures over the last few years, including a major co-branding deal with Senators Sports & Entertainment last June. That deal saw Canadian Tire’s brands become the official sponsor of everything tied to the Senators, from online and TV coverage to the Canadian Tire Centre’s bars and restaurants and the uniforms worn by the stadium’s employees (made by Mark’s).
Beginning in November, Canadian Tire and Scotiabank plan to promote the new Scene opportunity throughout Scotiabank’s 1,100 branches, Sport Chek’s 180 stores, and Cineplex’s 163 theatres across Canada. The campaign will include previews before Cineplex films, and out-of-home advertising on Scotiabank’s ATMs. It will be co-created by Sport Chek’s AOR, Sid Lee, and Scotiabank’s, Bensimon Byrne.