Coalition Loyalty Program
Coalition Programs
Coalition loyalty programs can be extremely effective. Coalition programs involve a group of dissimilar businesses working together to offer membership benefits.
Coalition Loyalty Programmes: the who, why, and how big?
By By Peter Clark (co-author, The Loyalty Guide)
Published by The Wise Marketer in April 2006
There are two types of multi-partner programme: true coalitions and in-house programmes that have partners. Here we explore the strengths, weaknesses, opportunities and threats of true coalitions...
Tesco's Clubcard is a single operator programme that bloomed into a multi-partner programme, while built-for-the-purpose coalitions include Nectar (UK), Air Miles (various countries), Bonus Link (Malaysia), Gold Points (USA), PayBack (Germany), and Infinity (South Africa), among others. From here on, we're only talking about the true coalition loyalty model.
The four governing factors
There are four essentials that a coalition loyalty programme must provide if it's to be successful: 1. Rapid market penetration
A coalition programme should launch with a major partner in several of the key consumer sectors in order to quickly capture a significant proportion of consumers' spend. Ideally, these would include a major grocer, fuel retailer, bank or credit card, department store, and a mobile telecoms provider. 2. Deliver attractive rewards
One of the main advantages of a coalition programme for the consumer is that aspirational rewards can be earned within a reasonable time - even in as little as six months. This is because points can be earned on a large proportion of their normal monthly spend, if they buy from the right outlets. 3. Be first into the market
Generally, the first coalition programme in a region has an almost unassailable advantage. Once more than half of target households are signed up and have begun collecting, it is very difficult to tempt them to
Coalition loyalty programs can be extremely effective. Coalition programs involve a group of dissimilar businesses working together to offer membership benefits.
Coalition Loyalty Programmes: the who, why, and how big?
By By Peter Clark (co-author, The Loyalty Guide)
Published by The Wise Marketer in April 2006
There are two types of multi-partner programme: true coalitions and in-house programmes that have partners. Here we explore the strengths, weaknesses, opportunities and threats of true coalitions...
Tesco's Clubcard is a single operator programme that bloomed into a multi-partner programme, while built-for-the-purpose coalitions include Nectar (UK), Air Miles (various countries), Bonus Link (Malaysia), Gold Points (USA), PayBack (Germany), and Infinity (South Africa), among others. From here on, we're only talking about the true coalition loyalty model.
The four governing factors
There are four essentials that a coalition loyalty programme must provide if it's to be successful: 1. Rapid market penetration
A coalition programme should launch with a major partner in several of the key consumer sectors in order to quickly capture a significant proportion of consumers' spend. Ideally, these would include a major grocer, fuel retailer, bank or credit card, department store, and a mobile telecoms provider. 2. Deliver attractive rewards
One of the main advantages of a coalition programme for the consumer is that aspirational rewards can be earned within a reasonable time - even in as little as six months. This is because points can be earned on a large proportion of their normal monthly spend, if they buy from the right outlets. 3. Be first into the market
Generally, the first coalition programme in a region has an almost unassailable advantage. Once more than half of target households are signed up and have begun collecting, it is very difficult to tempt them to