#coalitionprograms #loyaltymarketing #loyaltyprograms #payback #airmiles #successfactors

A few critical factors:

1) A value proposition that is LONG TERM, COMPELLING, DIFFERENTIATED- with a deep-rooted purpose and cause.

2) A set of partners that echo the same values and purpose helps BIND customers (members) strongly to the program. When partners reflect the same values that customers believe in, it makes it more difficult for them to exit.

3) Partners should ideally cover a range of categories and customer needs to reflect a holistic offering – They may be high frequency/low value, low frequency/high value, high frequency/high involvement etc. E.g. grocery, apparel, finance, fuel, travel, specialty retail.

4) The above helps drive high velocity of earn and burn which makes the proposition attractive for members. The ticking of currency accrual across categories keeps motivation in the program up.

5) Viable economics. Pricing per point set very carefully to allow arbitrage on earn-burn.

6) Seamless technology and processes that enable well-oiled operation.

7) Active marketing – by the coalition owner and the partners. Lack of adequate marketing has led to the quick death of many programs! Keep members AWARE and INVOLVED.