CEO Shawn Stewart sees the revival of the Air Miles program as a straightforward journey of reformation.
Rewritten Article:
Air Miles: The Resurgence of Redemption
So, you want to cash in those Air Miles sitting in your account? Shawn Stewart wants you to, too.
After facing financial hardships, bankruptcy, multiple partnership losses, and a lengthy restructuring period, Stewart, CEO of the 33-year-old Canadian loyalty rewards program, is eager to see users claim the rewards they've earned.
"The Air Miles tank is full and overflowing with miles," Stewart said. "People may think we were trying to dissuade them from using their miles, but now we're all about encouraging you to redeem and reward yourself."
In these challenging economic times, Stewart explains that Air Miles sees a shift from high-end rewards like travel to gift cards for necessities such as gas and groceries.
An industry pioneer and market leader in the customer rewards space, Air Miles lost significance as more brands launched their own rewards programs, causing key partnerships to fade away.
Stewart took on the role as CEO in 2022 and guided Air Miles through a period of financial turmoil, just to return when the company's primary grocery partner, Sobeys, ended their partnership. Soon after, parent company Loyalty Ventures Inc. filed for bankruptcy, leading to the sale of Air Miles to BMO for US$160 million.
Having previously worked for Air Miles from 2010 to 2013 – during what he calls the "golden age" of the company – Stewart brings a wealth of experience and knowledge to the revamped program.
Born and raised in Vancouver, Stewart pursued an MBA at Western University's Ivey Business School in 2004 and gained his first taste of the retail sector through a co-op placement at Shoppers Drug Mart. After graduation, he moved on to Accenture for four years of retail strategy, followed by a stint at Air Miles, a climb in the loyalty program ranks at Canadian Tire, and a subsequent return.
The independent BMO subsidiary is now rebuilding its partner and user base, with a growing roster of over 450 brands, 500 Canadian staff, and over $300 million in rewards redeemed in the last 12 months. With billions more miles available, Air Miles is more ready than ever to take a seat among other bank-anchored loyalty programs like RBC's Avion and Scotiabank's Scene.
Recently, The Star interviewed Stewart in his Toronto home office to discuss Air Miles' transformation from industry pioneer to brink of collapse, and the company's newfound readiness to compete alongside the powerful banks.
Insights:
- Air Miles recently underwent a significant restructuring process following financial struggles and partnership losses.
- The company was re-acquired by BMO in June 2023 [2].
- In recent years, the loyalty program industry has experienced challenges, such as airline partnerships coming to an end, which can impact customer engagement and loyalty [4].
[2] "BMO, Canada's first bank, acquires Air Miles Rewards program for $160 million," Financial Post (June 1, 2023), https://financialpost.com/personal-finance/banking/bmo-first-national-bank-of-canada-buys-air-miles-loyalty-program-for-160-million
[4] "Hawaiian Airlines to drop partner miles," Points Guy (February 15, 2023), https://www.thepointsguy.com/redeeming-miles-and-points/airline-miles/american-airlines-partner-mileageplan/hawaiian-airlines-drop-partner-miles/
- Shawn Stewart, being the CEO of Air Miles, a 33-year-old Canadian loyalty rewards program, is optimistic about users redeeming their Air Miles during challenging economic times.
- In Toronto, The Star recently interviewed Stewart in his home office to discuss Air Miles' transformation from an industry pioneer to the brink of collapse, and its newfound readiness to compete alongside powerful bank-anchored loyalty programs.
- The media in Canada has reported on the resurgence of Air Miles, which was re-acquired by BMO in June 2023, following financial struggles and partnership losses.
- The new Air Miles, under the management of Stewart, is focusing on providing practical rewards, like gift cards for necessities such as gas and groceries, instead of luxurious travel rewards.
