Experimental program to offer points for healthy behaviour
Ottawa, B.C. are buying rewards to give back to citizens

vancouversun.com
Aug. 29, 2015
By Erin Ellis

When the governments of B.C. and Canada start buying and then handing out millions of dollars worth of customer reward points, a bonafide 21st century social experiment is underway.

B.C. is spending $2.5 million and the federal government $5 million on something called Carrot Rewards in a bet that points-crazy Canadians will join a gym or get a flu shot in exchange for more points from their favourite loyalty programs.

Details on the mobile device app and web-based program are far from final. There is no firm start date beyond sometime this fall and we don’t know which rewards programs will be involved as private negotiations continue. One thing is clear: Joining Carrot Rewards guarantees loyalty plans a piece of the total $15 million promised over five years by governments, private business and non-profit organizations that are backing it.

Canada’s biggest loyalty players are Air Miles, Shopper’s Optimum, Canadian Tire Rewards and Aeroplan, but there are countless others, from department stores to coffee shops.

Exactly what you’ll have to do to earn points is still in the works. Ideas floated in Carrot’s promotional video released earlier this summer include signing up, getting friends to join, taking quizzes on health topics or trying a new recipe.

The Vancouver Sun had a few questions about Carrot Rewards and went to the experts for answers.

What the -?

“I have some degree of skepticism,” concedes B.C. Minister of Health Terry Lake. “But I think it’s worth a try.”

Hectoring people to stop smoking or start exercising hasn’t been the most successful tactic, says Lake. So the Carrot approach - not the stick, get it? - is in line with a public policy trend that says “nudging” people to make good choices is more effective. The idea is that motivating a series of small actions will ultimately move society closer to a goal: fewer people in hospital for preventable illnesses.

“I thought we should invest in it because if we didn’t, it would be a missed opportunity to do something that we really haven’t done on a broad scale before,” Lake says.

Andreas Souvaliotis, founder and CEO of Social Change Rewards, the for-profit partner in Carrot Rewards, says the big idea is to save governments money, particularly in advertising.

“Every government in the Western world is creating a department that focuses on behavioural economics - and nudging. Your government in B.C. happens to be really good at it already,” Souvaliotis said from his Toronto office, adding that Carrot is the first of its kind in the world.

“The second thing we know is incentives really work. Especially in a country like ours that is addicted to points. And they are much cheaper than advertising.”

How point-crazy are we?

Ninety per cent of Canadians were enrolled in at least one loyalty program in 2013, according to a survey by Colloquy, a research firm owned by LoyaltyOne, which designs such plans. That’s higher than the 74 per cent of Americans who cram extra cards in their wallets.

And those programs claimed almost 120 million memberships in Canada. Colloquy says that means the average household belongs to 8.2 loyalty programs.

“We know that Canadians are one of the most engaged populations when it comes to social rewards,” explained Lake. “So there were a lot of things that said maybe this is the right type of nudging that will strike the right note for British Columbians and Canadians generally.”

Souvaliotis, who launched his own company after working at Air Miles, says Carrot plans to cap initial enrolment at 2 million so that points aren’t used up too quickly.

Will Big Brother be watching?

Let’s hope so, says Dr. Kendall Ho, head of the University of British Columbia’s eHealth Strategy Office.

How else will taxpayers know whether they’re getting a return on investments.

“I would be disappointed if there is no evaluation or research component to it,” Ho said.

“It will be really interesting over time to see how many people benefit from this program not only in behavioural change, but also improvements in health outcomes.”

While Souvaliotis balks at the Big Brother label, he says data from Carrot will help governments hone their messages. Why promote exercise in a neighbourhood full of runners, he asks.

“One of the key deliverables behind this for the government is information that can help them optimize their programs for the future,” Souvaliotis says.

He says the participation of respected non-governmental organizations - YMCA Canada, the Canadian Diabetes Association and the Heart and Stroke Foundation - should allay any cynicism about Carrot.

What about a privacy policy? The health ministry says that’s almost complete.

“We always have to make sure that we’re guarding people’s privacy. I’ve been assured that this data will not be used inappropriately,” says Lake.

Will it work?

“I think there is some evidence behind it,” says Ho, who has reviewed a number of health apps for effectiveness.

Carrot doesn’t meet all the criteria for a great health-monitoring app, he says, which include support from peers to stay on track and from health professionals who offer expert advice to users.

But it could spur people to think about health in the first place and set a goal for the rewards they want to get.

“There are elements there to motivate people to get involved, to have a milestone for their success: to get free stuff,” says Ho. “I think it’s a good idea.”

It’s not the first time the health department has ventured into this territory. A six-week promotion in 2011 by Healthy Families BC, the Heart and Stroke Foundation, Air Miles and Safeway offered 15 points for buying more than $15 worth of fresh produce and 50 reward miles to each shopper who bought five or more Health Check products. (Health Check has since been phased out following criticism that it endorsed too many salty or sugary processed foods as being heart-healthy.)

While the number of people who took part remains proprietary Air Miles information, the ministry says four per cent more produce was sold in Safeway stores across the province during the promotion. Health Check was the big winner with 45 per cent more of its products sold.