A new report has found U.S. companies and marketers are overcoming their concerns about diluted brand identity and joining a nationwide, coalition loyalty program giving consumer fuel rewards.
Excentus Corporation says although popular with hundreds of brands and millions of consumers in Europe, Canada and the UK for more than 20 years, coalition loyalty programs have failed to take hold in the U.S., due in part to brands’ focus on building standalone loyalty programs and marketers’ concerns about return on investment and splintered consumer loyalty and costs. With so many standalone programs in the market, brands now perceive more value in joining a coalition, where fuel savings, popular among consumers regardless of market prices at the pump, serves as a universal currency for consumers.
Additionally, several converging factors have created this coalition-ready environment in the U.S., according to the Fuel Rewards report. Factors include:
• The replacement of plastic payment cards and loyalty cards with smartphone-supported technologies and mobile apps that consumers now use to pay for products, as well as track and redeem loyalty-based rewards
• The availability of payment card offers, allowing consumers to earn rewards from a variety of participating retailers and merchants every time they use a credit/debit card
• National consumer interest in saving money on fuel, making cents-per-gallon savings a universal currency that can be redeemed coast-to-coast at Shell at any of their more than 11,000 participating stations
In the next several months, the Fuel Rewards program will launch a payment card solution that enables consumers to link a credit/debit card to the program. Members will be able to earn rewards from transactions with participating brands, and download a mobile app with which they can sign up, earn, track and redeem rewards from a smartphone or mobile device.
For more data on Card Rewards access CardData®. For information and commentary on Card Rewards visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on Card Rewards are available exclusively through CardWeb.com.®