Loyalty partnerships are becoming conventional, and trend as brands like Starbucks join the movement. They even stated that “through blockchain or other innovative technologies, they are researching how to tokenize Stars and enable other businesses to link their rewards program to Starbucks Rewards.”
Clearly, customers will be frustrated with them if loyalty programs stay centralized. Adding a good value via more appealing rewards and more straightforward points accumulation to the loyalty programs is usually intricate and challenging. Consequently, Loyalty programs that offer tokenized rewards and users can acquire value from various brands rather than just one are going to be more successful. “This will enable customers to exchange value between brands, engage in more personalized experiences, enhance digital services, and exchange other loyalty points for Stars at Starbucks.”, said the CEO of Starbucks. When brands and customers perform together to co-create value in an ecosystem, they can carry each other to the proper partnerships. If they prevail at this, they will also exploit regular advantages in the form of insightful customer data. It will allow them to demand to the mid-long tail more effectively and affordably and maximize every customer’s lifetime value.
The prominent loyalty programs are made up of partnerships – such as United Airlines and Hilton Hotels or Emirates and Marriott. However, associations are not limited to huge companies; a local grocery store can partner with pharmacies or movies.
Their clubs join together to offer more value to their loyal customers. Frequent customers are business travelers for airlines and hotel groups, so their partner mixes are heavily biased toward fellow travel brands.
These are three.
Since JPMorgan acts as a financial institution, setting appealing rewards for their customers can be difficult, lacking incentives and engagement. Therefore, they plan to work with other partners such as United to enable exchange for miles into rewards to encourage their loyal users to engage with the loyalty program. For instance, users can now get a travel credit card at JPMorgan that rewards them for daily payments and all travel-related expenses, enabling them to accumulate points faster (x2) and incentivizing traveling.
A good example of a long partnership can be Dick’s and Nike. The Dick’s Scorecard and Nike Membership loyalty programs are within Dick’s app; therefore, customers of both brands can tie their accounts and obtain rewards from both merchants.
Through the collective loyalty experience, customers will get a vast selection of Nike shoes and clothes, access exclusive product launches and collections. They will be invited to in-store events at Dick’s House of Sports and other stores.
This move to tie its loyalty program to Dick’s mobile app is another way to enhance the experience for shoppers and “fuel deeper engagement.”
The combination with Dick’s mobile app will help grow that offering wherever Nike’s customers like to shop and allow Nike to continue controlling its relationship with customers. Also, in 2015, it became possible to sync your Spotify account to Nike’s running app. For the launch campaign, customers were motivated to make a running playlist and rewarded a free, week-long trial of Spotify premium.
Users can now benefit from extra perks at Dick’s and Nike simultaneously through a united partnership. Through the Mobiance loyalty program ecosystem, brands can reward customers with a crypto token. They can convert their loyalty tokens or redeem with products or services that other platform members offer.
To sum up, In loyalty programs with multiple participating brands, the partnerships create the conditions for customers to remain active across the whole network of collaborating companies.