Are Coalition Loyalty Programs the Next Big Thing in Loyalty?

  • 08 Mar 2017

Coalition loyalty programs are not only becoming increasingly popular over the last couple of years, but may also become “the next big thing” in loyalty programs and customer retention.  So what are coalition loyalty programs?

Coalition loyalty programs allow the customer to use one loyalty card or mobile app to earn and redeem loyalty points across different businesses. This allows customer to accumulate points far more quickly and redeem them for a wide range of rewards.

Most often, coalition loyalty programs include a combination of fuel, grocery stores, credit cards and travel services, but can also include fashion, dining and restaurants, electronics and many others.

Convenience is the ultimate criteria for the modern customer, turning coalition programs into a preferred option for many.

What makes coalition programs successful?

  • Rapid market penetration

First of all, coalition programs should have a rapid market penetration and widespread launch in order to gain popularity and activate members. In order to get popularity, the program should include a major partner in several business segments to enhance the program credibility and gain momentum.

  • Ability to deliver attractive rewards

As with any other loyalty program, rewards are a critical success factor. They must be earned within a reasonable time and should be diverse enough to satisfy customer needs from different segments. In the perfect case, this should be a combination of both physical and experiential rewards, covering different customer preferences.

  • Need to be first in the market

Usually, the first coalition program in a given region has a substantial advantage. By covering the major partners and accumulating a significant number of customers, these programs become very hard to replace.

  • Build strong communication channels

Communication is an integral part of successful loyalty programs. Today’s customers demand multiple touchpoints with their favourite brands, including email, text messages, social media and even face to face contact, all of which should be seamlessly integrated into the loyalty program.

 

For more information on coalition loyalty programs, feel free to contact us at sales@loyax.com .

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