Coalition loyalty strategy and Case study

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Coalition loyalty strategy

Coalition loyalty strategy and Case study

Coalition loyalty strategy: Spread the love

This post discusses coalition loyalty strategy, also known as reward partnership programs in detail.
In a previous blog post, we outlined seven of the most effective loyalty strategies that a company can implement in today’s climate.

https://www.azpiral.com/7-different-types-loyalty-programs-designed-retain-customers/

How it works
This type of program, see a brand, that may have a niche product or service offering and may have little interaction with their customers, partner with other brands to offer customers discounts through associated brands.

Reward partnership loyalty strategies provide a brand’s customers with benefits beyond what the brand can offer.

This type of program is best suited to brands with no customer-facing store or a brand that doesn’t interact with customers regularly such as insurance companies.

Case study:

Case Study: American Express Plenti Program
American Express implemented a coalition program called Plenti program, in May 2015. They partnered with huge brands like Macy’s, AT&T, Rite Aid and much more.

Plenti members earn points for shopping at partner stores and can redeem points in the partner stores by linking their existing store loyalty card to their Plenti account.

For example, customers can use Plenti points they have earned buying from something in Macy’s in order to pay their AT&T phone bill or vice versa.

According to Fortune magazine

“For the companies, even ones like Macy’s that already have huge loyalty programs,
Plenti is a way to tap into the broader customer base of its partners, save on program costs, and lift sales by offering a more appealing program to customers.”

Best Practices:

Use your data
Ensure you use an integrated loyalty platform that can capture real-time data.
Understanding your customer interests and hobbies will lead to more effective partnerships selection and reward offerings that truly engage your customers.

Review regularly
Review your rewards offerings and use your data to understand what entices customers to redeem points or rewards.

Ease of use
In order to ensure uptake in the program, it is important that it is easy to earn and redeem points.
Flexibility is the biggest appeal to the customer for this type of program.

Best suited?
This type of program is best suited to brands with no customer-facing store or a brand that doesn’t interact with customers regularly such as insurance companies.

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