It’s not a novel concept for several firms to band together to create a single pooled loyalty programme. The advantages are also readily apparent: consumers can accumulate and use points while making purchases from a range of brands, while businesses who take part experience increases in revenue, touchpoints, user data, as well as cross-promotion. Though the idea of coalition loyalty programmes never really caught on, there are a few notable exceptions (like Plenti in the US and Nectar in the UK).
However, in recent years, incentives and loyalty technology have grown at an unheard-of rate, providing coalition loyalty programmes with new opportunities.
The idea has already become commonplace in malls in places like the EMEA, and industries like travel and hospitality are well-known for implementing it online. However, it was the Covid-19 epidemic that made businesses understand they needed to work together to make history.
The coalition loyalty programme saw a revival as a result of everything.
When you’ve finished reading this manual, you’ll know:
What sort of incentive scheme qualifies as a coalition loyalty programme?
Which industries stand to gain the most from a shared rewards system strategy?
What characteristics define a really next-generation coalition programme?
How an engaging user experience appears
How to effectively oversee participating brands to guarantee success over the long run
How this advanced technology functions in the background
Understanding the entire concept, from crucial components to potential in-store hardware, is essential if you want to launch a coalition loyalty programme that is effective. And that’s what this manual aims to accomplish.
Top 5 Motivational Coalition Loyalty Initiatives
1.Nectar Loyalty Card
Nectar, which was introduced in 2002, is the main coalition loyalty programme in the UK. The organisation presently has 16 core members, including British Airways, which offers point conversion through its own loyalty programme, eBay, Sainsbury’s, and DHL Express. Additionally, by making purchases from a number of online merchants, nectar points can be accrued.
Spending money on participating brands results in points being gained. Typically, 1 point is earned for every £1 spent.
Participants are permitted to grant extra points for buying particular goods. Points can be applied to coupons and cashback deals.
Following the awarding of each point to a consumer, Nectar is paid. After the points are collected, brands are paid.
- Darna Prizes
Darna Rewards is a coalition loyalty programme in the UAE region that was introduced in September 2020. Customers can accrue points and take advantage of a variety of incentives at a network of dining, spa, golf, theme park, and retail locations.
The program’s hybrid approach, which combines aspects of earn & burn and tiered structures, is its core.
There are three grades and 200 advantages altogether.
Members are required to link their credit card to their reward account in order for the programme to employ card linking to track purchases.
3. Hilton Honors
Hilton is a well-known hotel and resort chain worldwide. The relationship between the company and other resorts is the foundation of the company’s coalition loyalty programme, Hilton Honors, which brings the total number of participating locations from 584 to 5,900.
The loyalty programme combines a tiered system with straightforward earn-and-burn features (there are four tiers in total).
Benefits like free WiFi, digital check-ins, access to executive lounges, and luxury gifts are unlocked at higher tiers.
Customers may access exclusive Hilton Honors experiences, such complimentary brunches at upscale restaurants, by using points to extend their stay for free.
4, TapTap Loyalty Program
TapTap, a Vietnamese loyalty platform, unifies over 30 brands under one umbrella, including food and beverage producers, board game distributors, online retailers, and even spas. Due to the fact that it can only be accessed through a certain app, the programme has a strong digital perspective.
After identifying themselves by having their app scanned while making purchases, customers receive points at participating retailers.
The app has a rewards area that lists the coupons and discounts that are available for various brands.
Through a collaboration with Galaxy Cinema, TapTap gives users the option to convert Stars, the rewards program’s loyalty currency, into TapTap points.
5, Majid Al Futtaim Share Program.
Share is an Emirati Holding Company Majid Al Futtaim app-based coalition rewards programme that was launched in 2019. The programme is broadcast throughout the UAE at 2,300 retail locations, 16 malls, and 11 hotels. This is how it goes:
Share operates as an earn-and-burn programme with a conversion rate of 10 points to 1 AED.
Cashback offers, exclusive discounts, experiences, and entertainment services can all be purchased using points.
Either the Share ID/Share Wallet app is scanned at the POS or the receipt is scanned to record purchases.
Additionally, the reward programme frequently conducts social media contests and campaigns, such as Instagram comment or photo competitions.
Bring Your Own Dream Team Together
There is still life in the idea of a coalition loyalty programme. Both programme owners and tenants can gain a lot from this kind of collaboration thanks to cutting-edge loyalty technology and the proper mindset. We hope that this article has helped you become familiar with a new breed of shared loyalty programmes.
Please feel free to schedule a demo or invite us to your RFP if you’re interested in learning more about the extensive features and capabilities Antavo’s Loyalty Management Platform has to offer.
Don’t forget to download Antavo’s Customer Loyalty Report 2022, a comprehensive report that offers a wealth of data and upcoming market trends to assist you in navigating the world of next-generation loyalty programmes.