How to Get Started With a Coalition Loyalty Program

For many people, their wallets and key chains are filled with loyalty cards and their phones stocked with loyalty apps. In fact, Americans are enrolled in about 18 different loyalty programs and participate in an average of eight.

One rewards system may have the ability to change this. Coalition loyalty allows brands to work together so members have variety when it comes to earning and redeeming rewards.

Danielle Brown, the VP of marketing at Points, a commerce platform for loyalty programs, says coalition systems don’t exactly translate into a points system. They create loyalty.

“It’s value — it gives them more ways of earning in their own currency or a currency they know and love. It helps to create exposure and it builds trust,” says Brown.

Plenti Points, for example, is a coalition program launched by American Express last year and includes brands like Macy’s, Rite Aid, Expedia and AT&T. A member can shop at Macy’s and Rite Aid, and then redeem their rewards at Expedia. Plenti members earn rewards quicker (without having to use a credit card) because they have more than one brand to earn rewards with.

“I think it’s successful because the depth of choice. It’s really important to give members what they want and give them value,” says Brown. “If a member in a program sees value in transacting, then he/she will engage more.”

And isn’t this exactly what marketers want? Happier, more engaged customers are more likely to advocate for and become repeat buyers of your brand. Before you get started with a loyalty program, consider Brown’s best practices for coalition success.

1. Know What You Want

As a company, Brown suggests thinking about what verticals you want to develop in. By doing this, you have a better understanding of what partners you want to work with. This is a very important first step because this is what will attract people to your program.