Coalition loyalty programs have traditionally suffered in the United States, but a new white paper from the Fuel Rewards® program reports that this is changing. According to the report titled, “Coalition Loyalty: A Roadmap for Success in the U.S.,” more domestic brands and retailers are relying on fuel-based rewards to capitalize on the significant benefits of nationwide loyalty programs.
Coalition loyalty programs, which rely on collaborative efforts between multiple brands, have been successful across Canada and Europe for decades. However, because of the emphasis on regional brands as opposed to national brands, concerns over compromising the efficacy of other marketing efforts, and even the fear of losing company secrets, standalone loyalty programs have always remained more prominent in the U.S.
But according to the white paper, fuel’s “unique loyalty currency” seems to have alleviated the historical reluctance towards domestic coalition loyalty programs. That is, the ubiquity of fuel as a common, everyday necessity makes fuel points an ideal reward for almost every consumer.
“As a non-luxury necessity, fuel as a loyalty currency represents what the average American consumer values most: The ability to save on everyday purchases in order to enjoy the rest of life more,” Brandon Logsdon, President and Chief Executive Officer of the Fuel Rewards® program, said in the report.
Logsdon added: “Even in small amounts, cents-per-gallon savings allow brands to deliver an immediate, emotional reward to consumers who watch fuel prices roll back at the pump.”
The report also sites price sensitivity and the frequency at which fuel must be purchased among the additional benefits of using it as the basis for a coalition loyalty program and points reward system.
Broadly speaking, coalition loyalty programs allow consumers to quickly collect more meaningful rewards. Instead of tediously redeeming rewards earned slowly through a single brand, consumers can rely on everyday spending habits to collect greater rewards more frequently by engaging with many different brands across many different industries.
As a result, brands benefit from participating in such programs by providing cross-promotional opportunities, access to new customers, and increased brand awareness.
The advantages of a coalition loyalty program’s ability to build customer engagement by offering satisfying rewards that are relevant to the lives of consumers are certainly present. And U.S. brands need only to begin taking notice.
“Coalition loyalty answers the needs of both consumers and marketers in compelling ways, and fuel serves as the valued, universal currency that leads to meaningful customer engagement, shared success and increased revenues for brands,” Logsdon said. “U.S. consumers are waiting. While they wait, the road to success is clearly marked for brands willing to embark on the rewarding journey.”