Crossover or Coalition Rewards Programs

Posted by Oliver Fodem on Fri, Jul 26, 2013 @ 08:15 AM

A crossover loyalty program is created when two or more businesses get together to reward customers.  A coalition loyalty program allows customers to be rewarded for their loyalty to multiple businesses instead of just one business.

The joint loyalty program between Delta and Starwood is a great example of how crossover rewards can benefit both companies and their customers. Since that inception, Starwood reported that the program has signed up a record number of new memberships, all taking advantage of the ability to combine two travel accounts into a single loyalty program. I see a crossover rewards program as a win-win between companies and customers.  Companies sharing the same network of customers will benefit from having a loyalty program that attracts new customers and entrench loyalty from their existing customers.

“Eligibility for Crossover Rewards requires active membership in both the SPG Program and the Delta SkyMiles program and that an individual’s membership accounts in both programs are under the same name. “

Another example is the Discover Central Corridor Card where multiple businesses in a specific area have gotten together to offer customer rewards. Located in Saint Paul, MN 55114, “The Discover Central Corridor Card offers you access to discounts at participating businesses on or near the Central Corridor”. As you are visiting their website, you will see in the discounts categories all the varieties of business activities involved into this program.

 As a customer, there are many situations where it would be nice to have a crossover rewards card or a coalition rewards card.

  • Buying and earning points at a grocery store and being able to redeem them at a c-store for discounted fuel.
  • Earning points from my barber and being able to redeem them at the pizzeria next door and vice versa.
  • Eating in a restaurant and gaining points that could be redeemed at a grocery store and vice versa.
Customer Rewards

The challenge with coalition rewards programs is customers can spend all of their money at one business and redeem a reward at another. While this can be good for customers not all business owners like it.  In the airline / travel type programs this seems to be more mutually acceptable than in a small business retail/restaurant environment .

Talking about coalition program in regards to SIMPLI, single owners with multiple businesses can utilize Simpli Marketing to set up a coalition program or crossover reward programs for their customers. The reason why I said single is because, Simpli does not enable multiple merchants to participate in a loyalty program using a single card that can be accepted at the various merchant locations inside the network.

While being a friendly and easy to use program, Simpli offers a variety of nice features like:

  •       Enroll customers in store with driver’s license or online.
  •       Communicate to customers the way they prefer.
  •       Create targeted promotions.
  •       Easily track status and pull reports.
  •       Setup rewards program sturucture.
  •       Track promotion results and purchase history.

 

Learn more about C-Store loyalty programs by downloading our Ultimate Guide:

download cstore guide to loyalty

Tags: Loyalty Marketing