August 18, 2018 CPG, Financial Institutions, Loyalty Strategy, Personalization, Retail, Telco, Travel & Hospitality

Which Loyalty is Right for You – Proprietary or Coalition

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

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