Can Loyalty work for Acquiring New Customers as well as keeping my existing customers?

The short answer is yes. The longer answer is there are different types of Loyalty strategies and some are better at customer acquisition.


Most small to medium-sized retailers have tried their own loyalty solution with mixed results. Large corporations or MegaMartAzons have executed their Loyalty platforms very successfully in growing their customer base. We are specifically referring to single brand loyalty solutions like Starbucks, Petro Canada and PC Points.

Large corporations have the brand panache built up within consumers’ minds already. This is something that small to medium-sized retailers do not have. They will never be able to stand out in the very competitive space of Loyalty plans in the consumer’s mind.

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Programs like Air Miles and Aeroplan are a different kind of loyalty strategy called Coalition. Many different brands under one loyalty platform is very successful for new customer acquisition. We even see the large brands use these Coalition platforms including:

Even these large MegaMartAzon’s see the benefits of being part of a Coalition-style Loyalty platform instead of trying to compete with their own. Truthfully, a small or medium-sized retailer does not have a chance to grow their business with a single brand, stand-alone loyalty strategy that most use.

A Coalition platform is the ideal Loyalty strategy for small and medium-sized retailers. As a community of 100’s of local businesses, it is the only way they will break through the noise to capture the attention of the consumer.

In addition, and what we are discussing here is that a Coalition strategy will deliver new customers to the doorsteps of each business. The consumers that support the local butcher will then seek out a bakery and co ee shop on the platform to get their points.

Coalition Loyalty is the only way a small to medium-sized business can see a positive effect on their loyalty strategy. If combined with other components it can be the most successful marketing decision they ever make. The other components they should be looking for include:

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If executed properly, you will see your business grow faster than you ever thought possible. Coalition loyalty can be the cornerstone to long-term longevity if you are a small to medium business owner.