How to Get Started With a Coalition Loyalty Program
“If you’re doing a coalition program correctly, not only does it give members more options, but it also exposes members to different merchants or programs that they may not have thought about collecting in,” explains Brown. “Now, because they are part of that coalition, it expands their scope and allows them to perhaps try a brand they wouldn’t have tried before.”
This is beneficial to every company within the coalition.
2. Know What Your Potential Members Want
As you are thinking about what you want as a company, it’s crucial to collect information on what your potential members want out of a coalition program.
“Know your customer, look at how they shop, look at how they spend,” suggests Brown. “Figure out where they earn now, where do they want to earn and what are different brands that are important to them.”
3. Create Loyalty
After you figure out what your potential members are looking for, you can create loyalty.
“It benefits companies to be bolder and realize that even though they want to be sticky, they can’t be everything to everyone,” notes Brown. “Pivoting that point of view and realizing that having a customer that knows you are going to give them what they want is going to be more loyal to you, even if it’s not directly from you.”
When customers feel like you know their wants and needs, they will be loyal to your brand. When you partner with other brands that are important to your customers, you create a coalition.
However, Brown believes coalition programs are still one step removed from where reward systems need to be in the future.
“It’s still a little restrictive because you do have a bunch of generally non-competitive brands – you’ll have one brand in each category that someone can earn in. I think the future of loyalty has to be something that allows members to earn in, perhaps, more than one brand in a certain category,” explains Brown.