Do coalition loyalty programs really work? Analyzing the effect of coalition loyalty program

Abstract

Background: This study is the continuation of earlier studies of analyzing the effectiveness of coalition loyalty programs for partner companies. This study includes an analysis of some effects of the Malina Coalition Program. Method: Popular lift and shift efficiency criteria have been chosen for the analysis. Statistical studies of turnout indexes, associated with various consumer categories, new consumers, prices, etc. were conducted. The following hypothesis of this study was developed: Great share of effects achieved by the partner company, which is participated in the loyalty program could not be referred only to the shift and lift effects Findings: According to our analysis, the effectiveness of coalition loyalty programs could be one of the question for some companies to make a decision to participate in such programs. While applying well-known methods for efficiency analysis and evaluation, lack of criterial validity record refers expansion of product's consumption, generated by new customers, participating in the program; and increase the buying activity of the existing customers, participating in the program, to the coalition loyalty program, which has been shown in the study. Applications/Improvements: Additional effects of participation in coalition loyalty programs are neglected due to the limitations of popular methods for effectiveness evaluation, like lift and shift effects. Research had shown that impact of these and other factors should be taken into account in combination for every case for coalition loyalty program partners and for the operator of the program.