From the collection points to the catalog rewards, loyalty programs have grown in recent years, the airlines and credit card companies are the first beneficiary, offering integrated programs and stand-alone.
Research conducted on the topic from “Maritz Loyalty Marketing” says that the number of loyalty programs in the United States continue to grow up to 2.647 billion of subscription. A consumer follows an average of 7.4 loyalty programs, but is an active participant just in 63% of these programs.
The Americans Airline Airlines is a top vendor thanks to AAdvantage loyalty program with 67 million members since 2001, enables its best customers to get discounts on air travel and upgrade to first class.
AAdvantage is a coalition loyalty program, which allows customers to earn miles through travel and shopping at American Airlines Partners, to turning into or travel products and exclusive events.
What is the real difference between a loyalty program Stand Alone and Coalition?
Gartner analysts define the coalition loyalty programs an evolution of the classic Stand Alone.
The Coalition Programs allow users to collect points, the difference from the classic Stand Alone is that the Coalition Programs allow users to collect points by making the purchase from multiple partners rather than by only one.
The Coalition Program allows companies to strengthen relationships with customers, giving an economic advantage or privilege in many areas. At the same time each brand can show its commercial offer in a consistent way with the value proposition of the program, by giving to the companies the opportunity to speak to a large database, allowing to work more on prospective customers.
Aima research says that in the United States the costumers more interested to participate in a Coalition Loyalty Program are the new generation customers “Millennials” (74% of respondents in this category), interested in the possibility of obtaining benefits by multiple users operating in the market. The research reveals that 87% of cases, even more consumers, “traditionalists” are in favor to join a Coalition Loyalty Program.
The only obstacle is the dissemination of personal data, because the consumers are more favorable to provide data to a specific brand and only in cases where such information can be used to grow the buying experience or obtain relevant information.
The brand, in a Coalition Loyalty, especially those in direct competition, don’t show theirs customers information to other partner.
What is the key to having a successful Coalition Loyalty?
Develop a purchasing experience that will create quickly, significant and smart benefits for the customer, an easy to understand program that gives you the opportunity to collect more points in less time, thanks to the collaboration of prestigious companies.
Some brands also launched programs that apply gamification programs in order to involve the user and create engagement and increase revenues. In this context, developing systems of gamification have the objective to support the creation of community around the brand not only for the purchasing.
Chris Anderson, American journalist and author of numerous essays about the future of the digital economy and marketing, says that “money will cease to be the main signal in the market and instead of it will arise Monetary two factors: the attention economy and the economy of reputation”. They will be new factors to determine the value of a brand; a value that will start from the community, whose involvement will impact significantly on the fate of the brand and the future of its business proposition.
In this way Diet Coke has launched earlier this year a loyalty & Contest Program in collaboration with McCann Worldgroup.
The program includes a main competition, which rewards the loyalty to the brand, three contests click and win, the management of the Facebook page and weekly activities of gamification, through editorial content created by Mondadori.
Once registered on the platform, you can play every day for up to three codes found on the back of the caps of Diet Coke bottles. In addition there is a partnership with Privalia and a virtual collection points, the “Love Points”, by placing multiple accumulate codes and sharing more content.
The goal of Diet Coke is to strengthen the relationship between the brand and the target, through gamification strategies, which aim to engage users with the big names in fashion.
Another example of coalition loyalty program is that of the Canadian AIR MILES: with more than 100 business partners, allows members to earn miles for every purchase made in store and online paying with card Air Miles. The miles are converted into coupons and travel products or services of other brand partners. The system allows members to get over 800 different prizes.
Among the most active on the coalition front, there are airlines companies and top brand.
The Coalition Loyalty Programs, therefore, are becoming an innovative tool for customer retention and promotion of the brand and represent the new frontier in relationship marketing.