Building customer loyalty is the key to success in any business. Existing customers are more likely to purchase a product from the business than new customers. Developing an effective loyalty program is a popular method for increasing customer retention and sales. Some loyalty programs provide benefits as rewards for specific customer actions, such as repeat purchases and ongoing interaction with the company. The coalition loyalty program is a shared program in which numerous unrelated brands collaborate in order to increase customer retention. Perks earned with one brand are transferred to all companies that participate in the program. Let's take a look at how cross-brand marketing in coalition loyalty programs might help a business.

Cross-brand promotions
Creating campaigns involving several stores or brands has become easier with coalition loyalty programs. For example, if a shopper is offered a coupon to shop at a footwear or accessory store, it doubles the possibility to increase footfalls and transactions at multiple retailers, resulting in greater quality time spent on the mall premises.

Customers seek to maximize their own benefits, and members of a coalition loyalty program seek to acquire as many reward points as possible, as quickly as possible. As a result, individuals are more likely to change their past purchasing habits and make transactions with other brands in the same network. When coalition companies sell bundled products or promote other coalition brands for complementary services, it can attract customers to the coalition and encourages more frequent buying throughout the coalition.