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Loyalty partners: co-creating customer value

Currency Alliance

The best-known loyalty programs are made up of many partnerships – such as United Airlines and Hilton Hotels, or Emirates and Marriott. The majority of existing partnerships at big loyalty programs are brokered with one goal in mind: creating more value for the most frequent customers. The value can be immediate.

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Loyalty programs: should you issue your own points or miles?

Currency Alliance

The major problem holding back loyalty programs is that most customers simply cannot spend enough money with a particular brand to ever earn enough points to get to interesting rewards. On the other hand, 60-70% of customers may be motivated to redeem in the currency of a partnered airline or hotel.

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Consumer banking: money can’t buy loyalty

Currency Alliance

Bribing customers is easy and, as with most easy initiatives, not very profitable. Banks have been in and out of rewards programs for decades – but their focus ebbs and flows depending on the economic cycle as well as the regulatory framework. For starters, it isn’t financially sustainable.

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Innovators break the mould, at the 2020 Loyalty Magazine Awards

Currency Alliance

The incredible degrees of customer engagement that have been achieved, should inspire and guide the efforts of loyalty marketers in the coming year. In particular, the work of large corporations such as Sky, British Gas, Shell, Turkcell are worthy of celebrating – as examples of how to deliver big change at big organizations.

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Loyalty Strategy 2019: How to Win in the Next Decade

Currency Alliance

The future represents much more collaboration among brands to serve common customers more effectively. An example of effective alignment of strategy with tactics include Australia’s Coles Supermarket chain and its flybuys reward program. altering customer behaviour to support corporate objectives, without upsetting people.

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It’s (almost) never 1%: how to price loyalty rewards

Currency Alliance

Such ‘loyalty’ programs today are actually just rewards programs: ‘you do this and I will do that.’ This is normally in the form of static rules which apply a flat 1%+/- reward across the board. Hotel rooms forecast to be vacant would be a classic example. It’s the emotional value which creates real stickiness.

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Breaking down the walls: Loyalty Magazine Awards 2019

Currency Alliance

By the end of the programme’s first year, loyalty members made up 44% of Tarte.com revenue, despite only making up 21% of the total customer base. Customer journeys to the moment of purchase are highly complex and too few brands are engaging with key steps along the way, to understand why customers buy, or fall out of the funnel.

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