Blue Rewards: Our Initial Questions Regarding the AIR MILES Transformation
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Transforming a 34-year-old program with millions of members is no small feat. We acknowledge the complexity of this undertaking while questioning certain decisions that could affect the experience of Canadian consumers.
BMO has since clarified several points. You can find the confirmed answers in our complete Blue Rewards guide.
A Brand Strategy That Raises Questions
The choice to create a linguistic duality with “Blue Rewards” and “Récompenses Bleu” leads us to question the branding strategy adopted. The most established Canadian programs – Aeroplan, Scene+, PC Optimum, Avion – have opted for unique names that transcend linguistic barriers. Even a media outlet like ours chose a name that could be understood by both Francophones and Anglophones: MILESOPEDIA.
This differentiated approach is already reflected in the digital architecture, with an English website address dedicated to explaining the transition “whatisbluerewards.ca/fr”. This suggests a market prioritization that could pose long-term challenges for brand cohesion.
We understand that BMO has likely weighed these considerations, but this decision warrants observation regarding its impact on brand recognition in Canada, within a bilingual context.
Furthermore, one might question the choice made between:
- Récompense Bleu
- Récompense Bleue
- Blue Rewards
- Récompenses Bleues
Even BMO seems unsure, calling the program “Blue Rewards” on some pages and “Récompense Bleu” on others:
A Valuation That Raises Questions
The equation “1,500 points = $10” is perhaps the most intriguing element of this transformation.
This valuation deviates from the standards established by competing mass-market programs like Scene+ and PC Optimum, creating an additional learning curve for consumers.
This is already an improvement compared to AIR MILES, but BMO missed the opportunity to simplify things like competing programs.
| Program | Basic Equation | Value per point | Mental Calculation Required |
|---|---|---|---|
| Scene+ | 1,000 points = $10 | $0.01 | Minimal |
| PC Optimum | 10,000 points = $10 | $0.001 | Minimal |
| Blue Rewards | 1,500 points = $10 | $0.067 | Moderate |
| BMO Rewards | 1,500 points = $10 | $0.067 | Moderate |
| AIR MILES | 95 miles = $10 | $0.105 | High |
We question whether this approach will help achieve the simplification objective announced by BMO. It is possible that this valuation stems from technical constraints related to the conversion from AIR MILES, but the impact on user experience warrants attention.
Furthermore, the identical valuation between Blue Rewards and BMO Rewards leads us to believe that BMO likely aims, in the medium term, to merge the two programs into one. Or at least to allow for easier point transfers.
A Timeline That Raises Questions
The absence of Blue Rewards credit cards at the program’s launch raises questions regarding the coordination of this transition. Ideally, consumers would expect a simultaneous migration of all ecosystem elements.
This staggered approach can create a period of uncertainty for current AIR MILES credit card holders. Although BMO has ensured service continuity, this two-phase transition complicates communication and adoption.
We acknowledge that developing new credit cards requires time and regulatory approvals, but this time lag raises questions about the overall project planning.
The Hypothesis of a Market Reaction
Shell Canada’s announced departure to Scene+ and the timing of the announcement of Blue Rewards possibly suggest an acceleration of BMO’s plans. This timeline prompts us to question the influence of competitive movements on strategic decisions.
If this is the case, it would explain certain elements:
- The delay between the program launch and card availability
- Valuation choices that deviate from market conventions
- A brand strategy that appears less refined than expected
Reacting quickly to market developments demonstrates agility, but we question the balance between responsiveness and optimal preparation.
Here, we also identify an issue for BMO and Blue Rewards: major gas station and grocery store brands each have their own loyalty program. Shell’s departure is a significant blow, with the brand replaced by Irving, which has a more limited presence in Western Canada.
| Program | Grocery stores | Service stations |
|---|---|---|
| Scene+ | Sobeys, Safeway, IGA, FreshCo, Foodland, Thrifty Foods, IGA, etc. | Shell |
| PC Optimum | Loblaws, Provigo, Maxi, No Frills, Real Canadian Superstore, Shoppers Drug Mart | Esso, Mobil |
| Moi Rewards | Metro, Super C, Food Basics | – |
| Blue Rewards | – | Irving |
It should also be noted that RBC has partnerships with Petro-Canada and Canadian Tire.
A Simplification Opportunity Not Fully Seized
This transformation offered a unique opportunity to streamline BMO’s rewards ecosystem. The maintenance of two distinct programs (Blue Rewards and BMO Rewards) raises questions about the bank’s long-term strategy.
The example of Scotia, which consolidated Bonus Points into Scene+, or RBC with Avion, demonstrates that a unified approach can simplify the customer experience.
As we saw above, the valuation of the Blue Point from Blue Rewards being similar to that of BMO Rewards, we believe that a unification of the two programs is likely in the plans. But why wasn’t it done from day one?
Questions Regarding Value Communication
BMO’s history with point multipliers in its BMO Rewards program leads us to question the clarity of Blue Rewards’ communication. The valuation of 1,500 points for $10 requires mental calculations that could create confusion.
Indeed, 5X points at BMO does not always mean 5%.
Encouraging Aspects to Highlight
Despite these questions, several elements of Blue Rewards are worth commending:
- Quality Partners: Porter Airlines and the Accor group significantly enhance the offering
- Technological Modernization: The Expedia platform represents a leap forward already used by several other competing programs in Canada
- Respectful Transition: No loss of value for existing members
- Banking Integration: Potential synergies with the BMO ecosystem
A Constructive Observation Approach
Our questions are not intended to prematurely criticize a program that has not yet been launched. Transforming a historical program like AIR MILES represents a colossal challenge that few organizations have had to face.
We adopt a constructive observation approach, acknowledging the complexity of the undertaking while raising legitimate questions that could influence the experience of millions of affected Canadians.
BMO still has several months to refine its strategy before the summer launch. We hope that some of these questions will find satisfactory answers in future communications.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $150 | |||
| $120 | |||
| $0 | |||
| $0 |
