Which Loyalty is Right for You: Proprietary or Coalition?

Posted by Aimia on Aug 18, 2018 3:31:24 PM

killian-pham-147972-unsplash Coalition vs Proprietary loyalty-1

 

There are arguments on both sides of choosing between coalition and proprietary loyalty programs. Ultimately, the type of program you choose for your brand is a business decision that needs to meet your goals and align with brand values. Here is a quick list to help you weigh the options. 

 

Coalition Loyalty

 

Pros

Cons

An affordable option for smaller business

The coalition owns the data

A broad audience reach means more opportunity to attract new customers

Customers can shift loyalty to any partner in the coalition

Points liability is shared across multiple partners

Lack of differentiation

 

 

 

Proprietary Loyalty

 

Pros

Cons

You own your data – able to engage with customers more meaningfully

Some custom platforms can be costly to the brand

Create exclusivity for highest value customers

Many brands tend to use loyalty as glorified engagement and discount programs, which cuts into margins

Can design any program your team dreams up, and differentiate from the competition – with or without points

Liability in points-based programs

Topics: Telco, Financial Institutions, CPG, Travel & Hospitality, Retail, Personalization, Loyalty Strategy