At the rate at which, partnered or coalition loyalty programs are increasing; 2022 may very well be the year of partnership. As various businesses explore the concept of partnership from Fendi x Skims, Elf x Chipotle, Ikea x Lego, Dicks x Nike extending the partnership to a loyalty program can prove to be highly beneficial to all the parties involved. Before you venture out, we have created an extensive glossary that you need to familiarize yourself with for a successful and lucrative coalition loyalty program.
A – Assessment: The first step is assessment. You need to have a clear understanding of your customer’s requirements, why you need a coalition loyalty program and what are your options. Loyalty programs are a great addition to your marketing strategy that can help your business in more ways than one but before opting for a partner or a coalition program to need to check a few boxes and ascertain that partnering with a particular brand will help your business.
B – Brand Analysis: You need to partner with a brand whose brand aesthetics and ideologies match with yours. With your loyalty and marketing tactics, you are building a distinct brand image, associating with the right partners will help you reinstate that image and offer better value to your target audience.
C- Call-to Action: Depending on your marketing objective you need to have a specific call-to-action. For example, if you are seeking to acquire new customers, your call-to-action needs to be a referral link/ code/ coupon.
D- Data Mining: With Google phasing out third-party cookies, your coalition loyalty program can be your medium to extract vital zero and first-party data. Your data can help you understand your customers better and formulate effective strategies for higher returns.
E- Execution: The design and execution of your loyalty program is of utmost importance. You need to entrust the responsibility of your loyalty program to the right loyalty partner to yield maximum benefits from your loyalty strategy.
F- Friendship: Focus on creating a strong bond of trust and friendship with your customers through your loyalty strategy. The more customers trust you the higher the purchase frequency.
G – Gamification: To increase the efficacy of your loyalty program you need to implement strategies like gamification, that not only entertain customers but also increase engagement and retention rate.
H- Holistic Engagement: Aim to create holistic engagement through your loyalty strategy. Opt for elements like omnichannel feature for turnkey engagement and improve customer satisfaction and participation rate.
I – Individualized Experiences: Most brands use personalization techniques to create individualized experiences for their customers. For example, if a customer frequently purchases a particular product from you, offering them discounts and offers on that particular product will prove to be a win-win for both – you and your customers.
J – Joined Forces: A successful coalition loyalty program can lay a strong foundation for future alliances. Joining forces with your partner brand can help you with market penetration, increase brand reach and acquisition rate.
K – (K)ommunity: With your loyalty program focus on creating a community for your loyal customers. Fostering loyal customers can help you build a strong brand following and act as brand advocates and evangelists in the future.
L – Loyalty Partner: Your choice of loyalty partner is a very important decision that could determine the success rate of your loyalty program. Annex Cloud has the experience and expertise to design a suitable loyalty strategy for your coalition program that can increase engagement and retention rate. Click here for a free demo and consultation.
M – Marketing Mediums: Choosing the right mediums to promote your coalition loyalty program is crucial. Choose the right mix of mediums to actively promote your loyalty program and bring attention to your partnership with other brands.
N – Nuanced Strategy: Annex Cloud can help you design a nuanced loyalty strategy that ensures quantifiable returns. The Loyalty Experience Platform is a dynamic suite that helps you engage and retain customers by rewarding them for answering to your specific CTAs. Click here to learn more about Annex Cloud.
O – Organic Publicity: A good loyalty program will bring in more customers through word-of-mouth marketing and organic publicity. It helps with market penetration and customer acquisition.
P – Promotions: It is extremely important to promote your coalition loyalty program and your partnership with the brand. Pre-launch promotions create curiosity and excitement and ongoing promotions not only bring in new customers but also act as reminders to loyalty program members.
Q- Quarantine/ Pandemic Effect: The pandemic had a massive impact on the customer psyche and forced brands to reanalyze their customer base and their new expectations from brands and businesses. Consider these factors before designing your coalition loyalty program.
R- Retention: Loyalty programs have a direct impact on customer retention rate. They are designed to increase purchase frequency and improve customer-brand association in the long run.
S- Social Media Presence: To increase the participation rate and brand reach, create a strong social media presence. It can help you create a strong communication bridge between you and your customers and keep the brand relevant.
T- Targeted approach: Focus on creating a targeted loyalty approach, it will help to improve customer experience and satisfaction and have a positive impact on revenue.
U – Upselling ratio: Coalition loyalty program also impact upselling and cross-selling ratio. A positive purchase experience improves brand credibility and impacts upselling and cross-selling.
V- Value-Added Proposition: The goal of a loyalty program is to create a mutual value exchange between customers and the brand and create a lucrative relationship between the two.
W- Window of Opportunity: Just like in any other campaign, identify and make the most during your window of opportunity. For example, holidays are a good time to start and launch coalition loyalty programs since customers are already geared up for the shopping season.
X – CX or Customer Experience: Customer experience is the new marketing. With your loyalty program, you aim to enhance the overall customer experience so that the customers remain loyal to your brand for years to come.
Y- Year-on-year Profit: Loyalty programs are a long-term investment. Although you may witness an immediate increase in retention or even acquisition rate, loyalty programs are designed to bring in year-on-year profit by increasing brand loyalty and brand credibility in the market.
Z – Zero Party Data: To participate in loyalty programs and earn rewards, customers are more than willing to share their information with the brand without hesitation. It is also a show of trust from the customer’s end.