Definition
Also called “shared loyalty programs”, coalition loyalty is a concept in which many unrelated brands join together in a partnership. Customers can enjoy more freedom and a wider range of incentives, as they earn points at all participating brands, and then redeem said points at a different (albeit still involved) brand.
Structure
Coalition loyalty programs are created by a single company, and then extended to a number of participants. The owner of the program is responsible for managing the program and overseeing the clearing and settlement process. Participating brands still enjoy a level of freedom, benefiting from increased footfall and the data collected through the program.
Key benefits of a coalition program include:
- Increased dwell time & footfall, and increased share of wallet for the program owner, as well as an enticing first point of contact for future personalization efforts
- More customer insight for participating brands, coupled with the opportunity to benefit of the start power of other brands through cross-brand offers and campaigns
- A more rewarding experience for customers, as they have more places to earn points & burn points. Moreover, coalition rewards make it more worthwhile to be a loyal customer.
Attila Kecsmar
Antavo
Businesses that find the most value in coalition loyalty programs:
retail hubs (malls, shopping centers, airports) and companies that have a large partner network (online marketplaces, financial services, and their regional offices, telecommunication companies).
Key Features
Coalition loyalty ecosystems demand a complex structure, so there are a series of features and capabilities needed to ensure full oversight and financial efficiency:
Cross-brand journeys: campaigns and journeys need to be built and run across multiple participating tenants
Brand management: campaigns and content needs to be authorized through administrative processes
Guest customer management: customers need to be identified and enrolled into the program at member brands
Batch reward management: hundreds of rewards need to be set up a managed in bulk
Content/offer management: content and offers need to be made available across brands in the coalition
Settlement: accounting and liability needs to be managed for points given, redeemed & expired
Coalition reporting: aggregated & anonymized data needs to be displayed with performance benchmarks
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