Success Stories of Interconnecting Loyalty Programs
The trend for strategic loyalty partnerships is becoming more and more mainstream as brands like Starbucks join the movement. The CEO even stated that “through blockchain or other innovative technologies, they are exploring how to tokenize Stars and create the ability for other merchants to connect their rewards program to Starbucks Rewards.”
It is clear that if loyalty programs stay centralized they will eventually die. Since these programs usually have difficulties adding value to their program through more appealing rewards and faster points accumulation. Therefore, the future is filled with tokenized rewards and users should and can obtain value from various brands rather than just one. As the CEO of Starbucks perfectly concludes, “this will enable customers to exchange value across brands, engage in more personalized experiences, enhance digital services, and exchange other loyalty points for Stars at Starbucks.”
3 Loyalty Partnerships Examples
These are 3 prominent examples of loyalty partnerships that seek to create value for the customer by letting them exchange value across multiple loyalty programs.
JP Morgan x United
Since JPMorgan acts as a financial institution, it can be difficult to set appealing rewards for their customers, leading to a lack of incentives and engagement. Therefore, it is vital that they seek to work with other partners or even frequent flyer programs such as United, to enable exchange for miles into rewards, in order to boost the incentive for loyal users to engage with the loyalty program.
United was able to raise $3 billion last year, just from selling miles to JPMorgan.
JPMorgan was able to obtain a lot more miles for its loyal members at a discounted price.
Users can even get a travel credit card at JPMorgan that rewards them both for daily expenditures as well as all travel-related expenses, enabling even faster points (x2) accumulation and incentivizing traveling.
Louis Erard x Miles & More/Etihad Guest
The loyalty partnership between Louis Erard x Miles & More/Etihad powered by qiibee enables members to benefit from additional rewards that extend beyond just those from Louis Erard and into Miles & More/Etihad Guest. Even when purchasing just 1 watch, maximize your rewards. The goal was to reward the collectors as well as the low-frequency buyers.
Louis Erard’s strategic partnership incentivized a lot of users to engage, due to a larger selection of rewards, customers ended up spending more in order to earn more points to use in the loyalty program.
Miles & More is able to expand its reach even further by enabling brands like Louis Erard to offer miles to their loyal customers.
The users can benefit from a much larger selection of rewards that can be obtained by the miles they earn when spending at Louis Erard.
Nike x Dick’s
The next step in a long partnership, Dick’s and Nike are tying together the Dick’s Scorecard and Nike Membership loyalty programs within Dick’s app so customers of both brands can connect their accounts and receive loyalty perks from both retailers.
With this joint loyalty experience, customers are offered an expanded selection of Nike footwear and apparel, access exclusive product launches and collections, and attend in-store events at Dick’s House of Sports locations and other stores.
- This move to tie its loyalty program to Dick’s mobile app is another way to improve the experience for shoppers and “fuel deeper engagement”.
- The integration with Dick’s mobile app will help expand that offering to wherever Nike’s customers like to shop and allow Nike to continue to control its relationship with shoppers.
- Users can now benefit from extra perks at Dick’s and Nike simultaneously through a united partnership.
Key Takeaways (TL:DR)
Strategic loyalty partnerships between two or more brands have a significant positive impact on the success of your loyalty program. As it enables users to earn at an accelerated rate and provides them with a wider array of appealing redemption options.
The success of these strategic partnerships is displayed by many brands who have already taken the first step, such as Nike x Dicks’s, as well as JPMorgan x United and of course in our loyalty ecosystem we feature an awesome strategic partnership between Louis Erard x Miles & More x Etihad Guest.
These strategic loyalty partnerships are possible due to the use of the blockchain. As we can more efficiently tokenize rewards and loyalty currencies, opening the door for even more opportunities.
Loyalty can be challenging to fully implement at first, but if brands become more aware of all the solutions they have at their disposal as well as the proper way in which to utilize them, then they can more effectively shape and improve their loyalty program to better fit the desires of their loyalty members.
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