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8 Global Best Practices for Building Coalition Loyalty

8 Global Best Practices for Building Coalition Loyalty

  Linking brands from different industries to create an “umbrella” value proposition for consumers is known as a Multi-brand or Coalition loyalty program.   This structure is the dominant one in many geographic markets outside the US. There are over one dozen coalition programs that have successfully operated for more than 15 years, and Hanifin Loyalty has had the opportunity to work with several of these programs as well as contribute to the launch of newer programs.   Coalition Loyalty Programs A quick list includes:  Aeroplan (multiple markets) AirMiles (Canada) Bonus Peru (Peru) Dotz (Brazil) Grace Kennedy Value Rewards (Jamaica) KickBack Rewards (US)   Building coalition loyalty programs successfully requires a fresh look at the strategic planning process. The programs are complex, there are competing interests, and the financial modeling which underlies business case development and budget procurement is complicated.   With more Coalition Loyalty activity in the US than ever before, we thought it a good time to share our view of 8 Best Practices for Building Coalition Loyalty, based on our accumulated experience.    8 Coalition Loyalty Best Practices Customer Experience – The value proposition offered (as with any loyalty program) should communicate simplicity and transparency. It must be easy to understand, and members should quickly identify benefits. There should be multiple earn and burn opportunities across the partner network.   Common Currency – A shared monetary system must be the coin of the coalition realm. It should be available on a consistent bases across the network of participating merchant. Partner Diversity – Optimal structure includes well recognized brands in key daily spending vertical markets. Fuel, retail, grocery,... read more

Freshbooks takes a personal approach to loyalty

The rush of to-do’s on a Monday morning provided a fantastic reminder of how some brands get it right with customer loyalty and some continue to struggle. I’ll share the story of two contrasting approaches to customer loyalty in this post, then follow up later this week with a specific analysis of why brands emphasizing a pure acquisition strategy leave lots of customer value on the table. First the good news. I receive my business mail through a UPS Store and checked my box this morning in the process of returning a pile of Cisco routers to ATT (that story comes in a moment). The cheerful business owner of the UPS Store handed me the accumulated mail from the box, and I noticed a cushy envelope with return address of Freshbooks, the cloud based accounting solution based in Toronto which I’ve used almost since its inception. Opening the envelope, I was pleasantly surprised to receive a hand-written note from a customer care person thanking me for a mention I made of the company in this Retail Wire discussion and offering to assist me if I needed help with their service in the future. Also enclosed was a great looking Freshbooks t-shirt. This small effort by Freshbooks had a big impact on me, so much so that I’m happy to include this referral link here in case you’re looking for a great cloud based accounting solution and want to give Freshbooks a try. First off, the company is paying attention to its online reputation. They’re not just tracking their name mentions and responding to people who look like they are prospective customers.... read more

Boomers and Millennials square off over digital payments

Earlier this week, our consulting firm Hanifin Loyalty engaged a service provider who presented an invoice to be paid via Square Cash. We managed to remit funds as requested but the transaction didn’t go down without a healthy debate between myself and my Digital Strategy Director about the efficacy and security of this new payment channel. Call it a debate between Boomers and Millennials on the changing face of the payments landscape, or just an illustration of the type of dialogue that needs to take place to keep the generation gap between Millennials and Boomers as tiny and manageable as possible. Either way, its clear that Millennials are making payment choices and are comfortable with a range of payment technology that still give Boomers pause for concern. Here’s a view into our discussion: Boomer: I don’t mind trying something new. I’m already familiar with Square as a merchant acceptance method and have a Square dongle myself. We routinely use PayPal and I’ve made Peer to Peer payments with Chase’s Quick Pay. But come on, is this one step too far? Millennial: Not sure what you’re worried about (haha). I’ve been using Square Cash for a while now. It is easy, secure, and most of my friends use it too. Remember that you reimbursed me for the office lunch last week using Square Cash? Boomer: You’re right, I did pay for lunch with Square Cash, but that was a $27 lunch. This is a much bigger invoice. What concerns me is linking an online app to my business debit card. Millennial: Maybe you just don’t know enough about it. It’s... read more