Coalition loyalty programs are gaining speed in the United States with multi-retailer programs such as Plenti, Spring and ShopYourWay substantially growing now that mobile technology has broken down geographical barriers.
Mobile is allowing U.S. loyalty programs that span a wide range of brands and retailers, rather than being specific to a certain store, to thrive after the strategy saw years of wide spread adoption in other countries. While consumers are just starting to get on board, an innovative mobile strategy can spur exponential growth for coalition programs.
“Multi-retailer loyalty programs started overseas more than a decade ago in much smaller countries – the UK, Germany, Australia, etc.,” said Megan Flynn, executive vice president of program development, brand and communications at Excentus. “They have had time to build strong networks of retail partners and large consumer followings.
“With the U.S. being the largest economy in the world and with its vast geographic landscape, the notion of coalition is more challenging,” she said. “Without pillars of everyday spend, there is not enough transactional activity to engage a large population of consumers.
“These categories include grocery, fuel, and restaurant in addition to retail and tend to be largely regionally specific. The rise of online and mobile shopping within the US has caused many of the geographical boundaries to fall and has finally made coalition more appealing in the US market.”