Loyalty program partnerships are gaining popularity

Coalition loyalty programs can help brands reach new markets, cross-promote and increase brand awareness. But implementation can be challenging

Loyalty program partnerships are growing in popularity among business leaders, according to EY's 2024 Loyalty Market Study. Nearly half (45%) of corporate respondents said they plan to build a rewards ecosystem within the next year, with a focus on expanding rewards across product categories and partner networks.

Key takeaways

• Broader reach: Coalition loyalty programs enable brands to connect with more customers than they could individually, facilitating entry into new markets, cross-promotion of products and services, and greater brand visibility;
• Adapting to consumer behavior: As more consumers shop online and look for better value amid rising prices, these programs have become essential;
• Appealing to younger audiences: Coalition programs make earning and redeeming rewards across multiple brands seamless, which is especially appealing to younger consumers;
• Personalization: Multi-brand loyalty programs allow for tailored rewards, a feature highly valued by consumers ages 25 to 44, according to the EY study.

Get the full story at Hotel Dive and EY