Building Successful Coalition Loyalty Programs for Retail Businesses
- Posted on November 8, 2022 by Robert
- Reading time about 5 minutes
Happy customers are what every business look for and loyalty programs play a significant role in retaining your loyal customers for a long time. Many businesses are making use of dedicated loyalty programs that can help increase average basket size and repeat sales for brands. However, single-brand loyalty programs have few limitations making it not suitable for many cases like when the customer base is low.
Talking from the customers’ point of view, the restraints are around rewards catalog & redemption opportunities. All these problems can be resolved by using a coalition loyalty program as it is capable of offering a wide range of rewards built around low, medium, and high-frequency shopping partners. Let’s find out how Coalition Loyalty Programs can help businesses save more and boost business growth by working together as compared to the individual program.
Significance of the Coalition Loyalty Program
Before we find out the benefits, let us first understand what exactly a coalition loyalty program is and how it works. Also known as shared loyalty programs, a coalition program can be defined as an approach where multiple brands join together to offer a common or joint loyalty program. Through this program, many brands from different industry sectors can work together to offer rewards that customers can earn from a variety of participating brands and redeem at any brand of their choice.
Top Ways That Show How Brands Can Benefit From Coalition Loyalty Program
The best thing about the Coalition loyalty program is it enables customers to collect reward points while shopping at more than one brand and avoid the stress of managing multiple apps on their phones and cards in their wallets.
Here are some of the benefits that businesses can avail of coalition loyalty programs-
– Expand Networks with Cross-Promotions
Customers always look for a way to maximize their benefits and coalition loyalty programs serve the purpose by enabling them to accumulate as many points as possible. This enables them to change their shopping habits to make purchases with other brands in the same network.
With a coalition program, brands sell bundled products & services promoting not just their brand but other brands for complimentary services increasing customer loyalty and encouraging frequent shopping experiences across the coalition.
– Promote Brands with Higher Purchase Cycles
Making use of a coalition loyalty program can promote products with a higher purchasing cycle along with short-purchase cycle products. For instance, bundling two services in one- monthly bill payment and annual Netflix subscription can boost higher sales for both brands.
Coalition gives chance for customers to collect smaller points for regular purchases and higher points for bigger purchases. This helps to boost brand awareness where all the participating brands under the same coalition network get benefits.
– Quicker and Effortless Rewards Earnings
As compared to a single brand loyalty program, a coalition loyalty program can offer huge benefits to not just businesses but also customers. They get to earn more reward points in a short period.
Research says customers enrolled in a coalition loyalty program are more likely to earn 3-10X more reward value than a normal single-operator program, giving customers a better opportunity to do more redemption.
– Reduced Costs & Risks
As the participating brands of a coalition loyalty program share the cost to run, there is no load on a single brand as multiple brands will share both the costs as well as any risks associated.
Additionally, a coalition loyalty program built by a rewards management software solution provider cost must lesser as compared to individual loyalty programs. With more savings, brands can pass on these benefits to their customers by offering them more relevant and valuable incentives.
– Drive Growth for Small Businesses
Startups and SMEs often struggle to build their brand [presence and trust among customers with the help of their loyalty programs. However, with the help of a coalition loyalty program, they can get a huge boost in their small businesses with the benefits they get from the network reach of the coalition.
This can be a cost-effective way for many businesses as they can offer a variety of benefits that wouldn’t have been possible without the support of other brands. Go for a coalition program with a mix of well-established brands as well as small brands.
– Enhanced Experience with Shared Data
Having access to customer data gives brands under the coalition program the ability to get insights about transactions, preferences, and purchases. This helps all the brands to build customized experiences with relevant reward offerings, that cater to the needs of individual customers.
– Omni-channel Approach to Communication
With the help of a smart coalition loyalty program, an omnichannel approach to communication ensures that customers are not bombarded with too many offers in a day or week or similar messages from multiple brands of different channels.
Using a coalition loyalty program, brands can leverage customer engagement data to harmonize engagement at the desired channel and cut through the noise.
As we know coalition loyalty programs work best for a group of businesses that are willing to work together through the help of a common reward program. Working together for a common purpose to provide relevant and attractive rewards to customers, brands have achieved immense growth by sharing business profits at a lower price as compared to single-brand programs.
Being a reliable and tailor-made interactive Loyalty Program Platform, Novus Loyalty helps brands to manage the entire loyalty program lifecycle with us through the help of a coalition loyalty program or a dedicated loyalty program of your own. From strategies, technologies,
expertise, and exceptional features, Novus can help a group of businesses work together to engage customers collectively through a good coalition program. Book a demo to see how our experts can help you connect various members/merchants/businesses under one loyalty program to gain huge profits.