In a recent whitepaper, we weighed the question: Proprietary Program or Coalition – Which is best for my business? We compared proprietary loyalty programs to coalition loyalty programs – their merits, their challenges and how they each stack up when it comes to delivering long term value to your business, and to your customers.
We decided to take this question even further: can the two program types successfully exist in harmony? Can an organization that is already firmly entrenched in a coalition program introduce the benefits of a proprietary program, or vice versa, and have the two successfully coexist?
We have proven that proprietary and coalition programs can not only work together, but they can yield great results. Here are some of the benefits of this harmonious relationship, not only for your business, but also for your customers:
From the Business perspective:
- Customer Acquisition. Dual programs offer you access to a larger customer base. Even if there is some overlap between coalition members and proprietary customers, the reach will certainly be wider.
- Increased Access to Data. Businesses with both types of programs can benefit from the data that is made available from their coalition partner while simultaneously building their own data warehouse with the richness of their propriety membership data.
- Flexibility. Having both types of programs in place gives businesses the flexibility to test, learn, and make changes to their loyalty positioning without upsetting their full loyalty offering.
From the Customer perspective:
- Earn Faster. Customers have access to a greater number of offers and benefits when programs are overlaid and jointly promoted.
- More Choice. Customers have more options when it comes to earning and burning their loyalty rewards.
- Meeting Needs. With dual program options, customers are more likely to evolve with the program. While free gas might be a customer’s original benefit of choice, life changes may shift the customer to a higher ticket item, like free travel, or vice versa.
So whether you have a proprietary program and are debating adding a coalition layer, or are currently participating in a coalition and are looking to roll-out a proprietary program – don’t rule out the dual program approach – the benefits might be greater than you think.