Lessons from Coalition Loyalty Programs

Coalition loyalty programs have taken a hit. Their goal was to create a single loyalty program that connects multiple brands across industries.

The thought was if one loyalty program could be used for many brands, that help everyone get more customer loyalty.  

But they program didn't work as hoped. Programs, like Plenti®, have an uncertain future. Many brands have created their own branded loyalty programs instead. That means the days of coalition programs could be over.

So, what lessons can be learned from this?

1. Own the Customer Experience 

Loyalty is a one-to-one connection between a customer and a brand. When there are too many brands in one program, the messaging gets messy. 

Brands must be in control of each part of the customer journey.

Customers have shown that they want your loyalty program's benefits time and again.

2. Relevance Brings Success 

Marketing strategies and messages should be personal to your customers. For customer interactions to be meaningful, they should be based on customer insights. What does the customer care about? Why should the customer care?

Marketers need to understand their customer. Only then can they create a loyalty marketing strategy. Customer data helps businesses use the three R’s of marketing:

• Relevance 

• Retention

• Revenue 

3. Putting Loyalty Into all Operations 

Programs work when they are a part of all your marketing. 

This means more than just a loyalty card or a loyalty mobile app. Your workers must talk about the program as well. Loyalty also must be a part of checkout with mobile payments and online ordering.