The word coalition loyalty program may sound familiar to you, but did you know it is a loyalty program? Coalition loyalty has been widely used as a method to build relationships with customers. For more details, we will now discuss coalition loyalty thoroughly.
What is Coalition Loyalty?
Coalition loyalty is a form of loyalty program that involves many businesses or brands working together. Coalition loyalty is bridged by a third party that will facilitate the implementation of coalition loyalty, such as providing customer data and rewards that will be given to customers. When compared to stand-alone loyalty programs, coalition loyalty is easier to implement and less costly. The purpose of coalition loyalty is so that the client does not need to work with various merchants one by one which will make it difficult for them in terms of documentation and other cooperation documents. A survey from Forrester in 2023 said 53% of marketing decision-makers from B2C companies have focused on special allocations for the implementation of loyalty program technology.
Through coalition loyalty, customers can easily collect loyalty points from shopping with more than one business or brand. Customers don’t even need to bother installing and managing multiple related business apps on their mobile phones to collect and redeem their loyalty points for the rewards offered. Customers also have the opportunity to get to know new, previously unknown businesses to become their future shopping preferences.
What are the Benefits of Coalition Loyalty?
The following are the benefits of coalition loyalty for your business:
- Reduce the risk and cost of loyalty program implementation
If your business is still in its infancy or you want to try partnering with other businesses in implementing a loyalty program, coalition loyalty can be the best option. You don’t have to start all the implementation from scratch, without having to spend more. In coalition loyalty, you will be facilitated by a supportive coalition loyalty ecosystem. In addition, coalition loyalty is an ideal platform for businesses with longer purchase cycles with business partners who have shorter purchase cycles so that they can maintain stronger customer loyalty. - Easy access to data and business insights
As the name suggests, coalition loyalty allows you to obtain data and business insights from the businesses you work with for further analysis and implementation of various related strategies. The data includes customer shopping preferences, frequently used products/services, consumer behavior, and so on. - More effective at attracting and acquiring customers
Coalition loyalty is effective in encouraging businesses in the coalition to cross-sell bundles and other products or services. Such sales can increase the value of incentives or rewards and attract customers, even to businesses or brands that are usually less desirable or unknown.
Start Joining Loyalty Coalition Now
Many businesses use loyalty programs as a way to improve customer retention. You can do the same. Coalition loyalty can be one of the best options you can apply.
If you are considering a third party or marketplace for your coalition loyalty, Prezent from Sprint Asia is here to help. Simply integrate your loyalty apps or business web with Prezent’s API, where we provide vouchers from various merchants we work with for you to use. You no longer need to acquire merchants one by one for your loyalty program needs. Sandeza digital voucher can also be customized according to your business needs. Contact us and get a free demo here.
