What are some examples of loyalty program partnerships that create value for customers?

The so-called Coalition model was the most popular way to align brands under one umbrella to create behavior change among a customer group. More recently we have seen Coalitions falter as the operating costs brought by a third party management group is not always justified. We use the term Smart Partnering to describe how complementary brands can join together to generate value for customers and reap financial benefits. Kohls and Sephora, Dicks Sporting Good and Nike, Delta and Starbucks are all good examples of this. The latest announcement by Bank of America to partner with Starbucks in another example of this growing trend to leverage partnerships for value.

Airlines and Hotels: Airlines like Delta partner with Marriott, allowing travelers to earn points for both flights and hotel stays, enhancing travel rewards. A local coffee shop teamed up with a nearby bookstore, offering discounts on books with coffee purchases, creating a cozy reading experience. Uber rewards American Express cardholders with ride credits, making travel easier while earning loyalty points for both brands. Starbucks Rewards members earn points for Spotify subscriptions, blending coffee enjoyment with music, enriching customer experiences. Retail and Dining Partnerships: A department store partnered with a restaurant, providing free appetizers to loyalty members, driving traffic to both businesses during off-peak hours.

In the Coalition Loyalty Program, cross industry partnerships is most prevalent model to be exercised. From the perspective of MENA region, there are various successful examples in this domain 1. Smiles by etisalat 2. Skywards Emirates 3. STC Qitaf 4. Careem 5. Shukran 6. Walaone in KSA Also, the point led coalition program has been termed as Branded Currency which takes the form of creating payment ecosystem.

Cross-industry partnerships are like peanut butter and jelly — different but better together! Imagine you're sipping your favorite coffee in a cozy corner of a bookstore, and with every sip and every page, you're earning points. Or picture this: you're flying to a sunny beach and the points from your flight could get you a free night at a hotel. That's not just a treat for customers; it's smart business. It's all about sprinkling a little extra joy into everyday activities and turning them into something special for the end customers. #LoyaltyPrograms #AlmondsAi

Loyalty program partnerships that create value for customers often involve collaborative efforts between businesses across various sectors. In coalition programs, airlines and hotels form alliances, allowing customers to earn and redeem points seamlessly across travel-related services and retail brands. Credit card collaborations result in co-branded cards offering specific rewards for users. Retail-tech integrations provide exclusive discounts through partnerships with technology companies. Cross-industry alliances, like grocery stores partnering with gas stations, allow customers to accumulate rewards across different sectors.

Cause-related loyalty programs link brand rewards with social causes, enhancing customer connection. Examples include retailers partnering with environmental groups to reward eco-friendly purchases or banks offering incentives for investing in green funds. Such programs not only boost brand loyalty but also promote sustainability, aligning customer actions with their values for a greater impact. Green Loyalty Programs: These programs specifically promote sustainable consumer behaviors. An initiative by a company like Almonds Ai involves integrating environmental, social, and governance (ESG) standards into their loyalty offerings, rewarding customers for making green choices.

Loved by GenZ and Millenials <3 Think of loyalty programs where every purchase has superpowers — maybe it plants a tree, or feeds a shelter animal. It's not just about buying stuff; it's about making a little corner of the world brighter. Customers love it because they get to be heroes just by shopping, and companies love it because it shows they've got big hearts. It's like turning everyday shopping into a superhero mission, and who wouldn't want to be a part of that? Green Loyalty Programs are the future in my opnion. #GreenLoyaltyPrograms

Loyalty program partnerships that enhance customer value include Starbucks and Spotify, where Rewards members earn 'Stars' by listening to playlists. Airline alliances collaborating with credit card companies extend mileage accumulation beyond flights. Hotel partnerships with ride-sharing services, like Marriott and Uber, allow loyalty members to earn points during their stay, creating seamless travel experiences and reinforcing brand loyalty. These strategic collaborations illustrate how cross-industry partnerships can efficiently enrich customer benefits within loyalty programs.

Brands need to evolve. Sustainability must be at the heart of their business. And loyalty programs can play a big role in this. Examples: ??: Reward them more for opting for healthier choices (water instead of soda) ??: Bonus points when they opt for an EV vehicle (instead of charging them more) ??: Extra miles when they opt for routes with the least carbon footprint ???: Extra points for recycling their clothes or donating them to a charity

A great example from my own experience is Ekuep.com. As an e-commerce platform specializing in commercial kitchen, restaurant, and coffee shop equipment, we partnered with Sary through our Rowad loyalty program, a B2B wholesale platform specializing in raw materials and consumables for coffee shops, restaurants, and central kitchens. This strategic partnership aligns perfectly with our customer base of restaurant and coffee shop owners. Even if it’s only by offering exclusive discounts on both platforms, we provide our customers with cost-saving opportunities and expand our reach and exposure. This partnership has facilitated a seamless supply chain experience, adding immense value and convenience to our customer base.

In the realm of impactful loyalty program partnerships, consider the dynamic collaboration between Nike and Apple. By seamlessly integrating Nike's fitness app with Apple's Health and Apple Watch, they deliver a comprehensive wellness experience to users. This transcends a mere product bundling, reflecting in a notable 20% boost in user engagement according to recent data. This partnership showcases the potential of combining fitness and cutting-edge technology, underlining the significant impact co-branded alliances can have on customer satisfaction and retention. It's a prime example of leveraging complementary strengths for a unique and enduring value proposition in the competitive fitness tech market.

Exemplos notáveis incluem parcerias entre companhias aéreas e cart?es de crédito, oferecendo benefícios exclusivos como upgrade de viagem e pontos extras. Essas colabora??es com outras marcas, ampliam as vantagens para o cliente, promovendo lealdade, mudan?a de comportamento e uma experiência enriquecedora.

Co-branded partnerships were a popular model in the 90s, but their popularity has diminished recently. I have managed 3 co-branded partnerships for a grocer, an airline and a department store. Each time, we partnered with a bank/credit card issuer. A healthy co-branded partnership is predicated on a clear division of financial benefits (e.g. revenue sharing) and the roles and responsibilities of each partner to make the program work. Exclusivity in the partnership is also a crucial factor in ensuring full commitment from both partners.

Co-branded partnerships effectively enhance customer engagement by combining the strengths and customer bases of distinct brands, resulting in a richer value proposition. These partnerships can significantly increase brand visibility and cross-promotion opportunities. They can tap into each other's data insights for targeted marketing, improving customer satisfaction by offering deals that are closely aligned with consumer preferences and behaviors. This synergy helps both brands to grow their market share and enhance their overall brand equity.

Reminder: Gamifying a broken loyalty program will give you a gamified broken loyalty program. Don't start with the solution in mind. Be obsessed with solving your customer's problems. Take a breath before you jump into the pool. And ask yourself three questions: 1. What is the next problem you’re solving for your customer? 2. Why do we have to have it if it doesn't create any value? 3. What do I have to give up when I pursue this solution? If, after going through these consideration points, the answer is still 'gamification', then go ahead. Just don't put the cart before the horse.

Gamification, in general, can significantly enhance customer engagement and loyalty by making the reward experience fun and interactive. In the Rowad program, we faced the challenge of gamifying our B2B loyalty program, which is inherently easier for B2C businesses. To overcome this, we created some Ekuep-related activities where customers earn points by completing their business profile for example, which they can redeem for discounts on Ekuep products. It might not be the most innovative approach. However, it keeps customers motivated to engage more with the program while providing us with the data required to improve and create a unique and future-rewarding experience. The same approach can be applied to any partner’s rewards.

Such partnerships are particularly effective because they tap into the psychological drivers of competition and achievement, encouraging customers to interact with the brand regularly. Gamification also provides a platform for social interaction, allowing customers to compare scores or achievements, which can amplify brand engagement through social networks. Additionally, the data collected through these gaming interactions can provide valuable insights into customer preferences and behaviors, enabling more personalized marketing strategies. Overall, gamified partnerships can significantly enhance the appeal and effectiveness of loyalty programs.

That gave me some other cool ideas. Imagine this: you've got a coffee shop loyalty program. Why not team up with a fitness app? Here's the kicker: for every mile your customers jog, they earn points towards a free cup of joe. It's a win-win. They stay healthy, you stay on their mind. Or, think about a bookstore teaming up with a popular e-reader app. For every book read, customers earn points redeemable for discounts on their next purchase. It's like feeding two birds with one scone, encouraging reading while boosting sales. These partnerships aren't just about points. They're about creating a community around shared interests.

In my experience data-driven partnerships can lead to the development of predictive analytics, where data is used not only to understand past behaviors but also to anticipate future needs. This can significantly enhance customer satisfaction as brands can proactively offer solutions before a customer even identifies a need or desire. Overall, by leveraging shared data, brands can create a more compelling, personalized, and satisfying customer experience, driving loyalty and long-term engagement.

Uber is currently participating in many data-driven partnerships, including Marriott Bonvoy, Aeroplan, Spotify, etc. It provides value to to members, as they earn in both programs. But it also vastly expands Uber's data collection to many previously untapped verticals.

I believe more than the type of partnerships it's important to understand the underlying purpose and value proposition for both brands and members. For Brands - 1. Diversification beyond core business 2. Cost efficiency through shared resources and collaboration 3. Marketing expansion by tapping into new set of customers in New industry For Members - 1. Variety and choice of Rewards or benefits. 2. Convenience through simplified redemption and earnings as most partnerships share integrated loyalty platforms. 3. Exclusive access to offerings even when you are not spending on multiple brands. So it's a win-win strategy for both the brands and members in terms of reach, diversification and variety.

We did a research on loyalty program partnerships BOTH this year and last year. Last year this is what we learned: "46% of respondents believe partner rewards will see widespread adoption" I am one of these people who thinks the same! Why partner rewards are great? - brands can capitalise on each other's audiences to grow their own. - low key - no need to take it super serious - it's just a reward, so it's easy to get approval - IT'S GREAT for the customer! And this brings me to this year's: "78.1% of respondents think diverse reward redemption options have a positive impact on customer retention and satisfaction." - meaning there are many rewards to choose from! Both numbers are from Antavo's Global Customer Loyalty Report.

Some examples of loyalty program collaborations/partnerships that add value for customers: 1. Co-Branded Rewards 2. Retail 3. Cross-Industry 4. Entertainment 5. Community Engagement 6. Tech and E-Commerce Integration 7. Signature / Subscription Benefits 8. Hospitality Collaborations #CustomerLoyalty #Partnerships #LoyaltyPrograms #ValueCreation #Client #cliente