This morning, Tim’s is joining the long list of retailers who have changed (worsened & significantly dialed back) their “loyalty” program.
As all the others, it’ll now be spending money based, instead of number of visits. In my opinion, Tim’s is making a big mistake. Average coffee and re-heated bagels and muffins hasn’t worked for a number of years. Sure, Covid lockdowns didn’t help, but now changing their reward program to be 250% less rewarding isn’t going to help their business. People may go in for a coffee and end up with something else, as well. Discouraging the coffee crowd from coming in the first place seems like a pretty dumb step backwards. Maybe I’m mistaken and Tim’s knows how to upsell people who don’t come in in the first place?? But then, they didn’t ask me…but now I don’t feel so bad having switched to McDonalds coffee some time ago…
still a financial-related segment, but today it’s about Tim’s. No, it’s not
time yet to do a gofundme page for them, but they’re certainly not doing well.
Do remember that Tim’s isn’t actually Canadian anymore. After their merger with
Burger King, they’re owned by a Brazilian billionaire’s company called 3G
Tim’s announced the end of their CIBC Double Double Visa card that only started
four years ago. I called it – all their hype didn’t translate to enough people
getting their Visa at only 1% cashback. Sure, the press release (after days of
meetings with CIBC I’m guessing) states it was mutual and both are moving on to
bigger and better things. But that translates to: The CIBC can only market so
many cards and this one isn’t enough volume or card holders to continue with.
The same thing happened with RBC and their Mike Weir (the golfer) card.
If you have
one, CIBC will automatically switch you to their Dividend Card. You may have
seen this coming as CIBC has been sending $40 cash incentives way before the
announcement to switch to another of their cards. Even if you don’t want that
new one – it’s too late. So take that card and activate it. Your history will
or should transfer over. If not, shame on the CIBC for dropping your credit
score! Cancel it after a few month if you want and if you are NOT going to be
looking to borrow for at least six months. If so, keep the card or your credit
score will drop a bit!
predication number two is coming to pass: Their just released Rewards Card that
gives you a free coffee after 7 purchases is going to get clawed back. That,
according to their Canadian CEO on an investor conference call. Right now they’re
losing money on it. About 50% of customers use the Reward card which costs them
money – but it’s not increasing sales. They want to switch to ‘individual
rewards.’ In other words: You’ll get rewards based on how much you deal with
Right now, their
sales are down 1.4% in the last quarter. I’m partly responsible as my Tim’s
trips are down by half: Their new dome lids leak a lot and after three times
going home to get changed, I realized I was getting average coffee and frozen,
then re-heated bagels with long lineups in stores because drive-throughs take
priority and I could do better elsewhere. When the Rewards card changes – it’ll
be the end of my love affair with Tim’s.