Can you explain how coalition loyalty programs work and what the benefits are for small and medium-sized businesses (SMBs)?

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Coalition loyalty programs are sets of customer benefits coming from multiple sources (air miles, concierge services, gifts, etc.) and offered to program constituents. For an SMB, the benefit to supporting a coalition loyalty program is that they can offer more attractive and cost-effective benefits to customers with the support of other businesses, rather than setting up a loyalty program independently.

This was first published in February 2008

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