Loyalty programs have long been a powerful tool for Consumer Processed Goods (CPG) brands looking to increase sales and build stronger relationships with customers. However, with the rise of coalition loyalty platforms, brands now have an even more powerful tool at their disposal. In this article, we’ll explore why CPG brands should consider a coalition loyalty platform, and how it can help them drive sales, increase customer loyalty, and gain a competitive edge.
Increased Reach
One of the biggest benefits of coalition loyalty platforms is that they allow CPG brands to reach a wider audience by partnering with other brands. By pooling resources and offering rewards or incentives to customers for purchasing products from multiple brands, coalition loyalty platforms can increase customer engagement and drive sales.
Greater Rewards
Coalition loyalty programs can offer a wider range of rewards and benefits than a standalone program, as they pool resources from multiple companies. A single loyalty program may only be able to offer rewards related to its own products or services, while a coalition program can offer rewards from multiple brands, especially those in different industries. The coalition program could offer rewards such as website coupons, samples, and brand merchandise, in addition to traditional rewards like discounts and free products.
Improved Targeting
Another advantage of coalition loyalty programs is the ability to share customer data and insights to decipher Customer Behaviour in multi-brand context. Brands can improve their targeting by getting access to a larger pool of data. By analyzing data from multiple brands, coalition loyalty platforms can identify patterns and trends that can help inform product development, marketing campaigns and customer engagement.
Costs
Building a loyalty program from scratch is a costly and time-consuming process. By joining a coalition program, consumer brands can save on the costs of developing and managing their own program.
Partnership Opportunities
Coalition loyalty programs also offer a platform for consumer brands to partner with other brands and gain access to new customer base and increase their brand awareness. For example, customers on Brand Wallet can swap their loyalty coins from Brand A to Brand B. The same customer gives higher sales to Brand A to earn the coins, and Brand B acquires a new customer. Analysis of this data can present new ideas to marketers of both Brand A & Brand B for new customer offerings.
Higher Participation
Any customer would generally patronize 100-150 CPG brands at any point in their lifecycle. If all of these brands were to offer a loyalty program of their own, the customer is not going to install so many apps on their phone. A coalition program like Brand Wallet provides capability for the customers to manage hundreds of brands on the same application. This leads to higher participation for all partner brands.
Increased Engagement
By involving multiple brands, a coalition loyalty program can create a sense of community and shared purpose among customers, which can lead to increased engagement and participation. With a wider range of rewards and more opportunities to earn points, customers are more likely to participate in the program and continue to make purchases.
Overall, there are many reasons why consumer brands should consider embracing a coalition loyalty program instead of building their own. From a wider range of rewards and shared customer data to cost savings and increased engagement, coalition programs offer many benefits that traditional loyalty programs simply can’t match.
