U.S. Merchants Embrace Nationwide Coalition Loyalty

New white paper from the Fuel Rewards® program details key elements that can drive merchants’ coalition loyalty success, and engage and delight consumers

DALLAS--()--U.S. brands and retailers are reaping the benefits of a nationwide loyalty program that is based on a highly successful model used for years by other brands and businesses across Europe, Canada and the UK: a multi-brand, coalition program that opens doors to millions of new customers and new sources of revenue, says a newly published report from the Fuel Rewards® program (whitepaper.fuelingloyalty.com).

By adopting cents-per-gallon savings on fuel as the program’s universal currency, U.S. companies and marketers are overcoming their concerns about diluted brand identity and joining a nationwide, coalition loyalty program that gives consumers the ability to earn flexible, valuable rewards on everyday purchases from a broad variety of retailers and brands. Rewards are redeemed as cents-per-gallon each time consumers fuel up at the pump, according to “Coalition Loyalty: A Roadmap for Success in the U.S.,” a white paper from the Dallas-based Fuel Rewards program.

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

Higher sales, more customers

“Coalition loyalty programs encourage rewards-based partnerships among well-known brands, giving them new opportunities to increase sales and attract new customers,” says the white paper’s author, Brandon Logsdon, President and CEO of the Fuel Rewards program. “And consumers benefit from expanded opportunities to earn rewards from everyday purchases and redeem them frequently on an everyday commodity like fuel.”

Without fear of losing customers to competitors or cannibalizing other marketing initiatives, U.S. merchants and brands spanning a variety of sectors can engage in partnerships and cross-promotional opportunities, Logsdon notes. With their combined brand power, they can change consumer behavior, boost sales, and deepen loyalty and spending among existing customers -- all without discounting the value of the brand.

An example of coalition loyalty success is Fuel Rewards’ “Winter Shopping” campaign, which empowers consumers to earn rewards on fuel when they use a MasterCard® linked to their Fuel Rewards account at Olive Garden, Toys“R”Us and JCPenney through March 1, 2015. Rewards can be redeemed at more than 11,000 Shell stations nationwide.

"Coalition loyalty answers the needs of both consumers and marketers in compelling ways,” Logsdon writes, “and fuel serves as the valued, universal currency that leads to meaningful consumer engagement, shared success and increased revenue for brands. U.S. consumers are waiting. While they wait, the road to success is clearly marked for brands willing to embark on the rewarding journey.”

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.

“Coalition Loyalty: A Roadmap for Success” in the U.S. is available at whitepaper.fuelingloyalty.com. For more information about the Fuel Rewards program or to arrange an interview with Logsdon, please contact Vanessa Horwell at vhorwell@thinkinkpr.com or phone 305-749-5342 x232, or Amanda Williams at awilliams@thinkinkpr.com or phone 305-749-5342 x238.

About the Fuel Rewards® program

Excentus Corporation is the creator of and patent-holder for marketing programs and services that utilize price roll down discounts at the pump as the ultimate consumer reward. Excentus has spent more than 15 years developing and perfecting the Fuel Rewards® program's technology and program features to make it easy for consumers to save money on fuel and convenient for businesses to build loyalty and create value for customers. The growing Fuel Rewards® program, formally Fuel Rewards Network™, provides members with the opportunity to earn free fuel simply by purchasing the things they normally would from more than 1,400 retail locations, nearly 700 online merchants, and 10,000+ restaurants, and redeeming their rewards at participating fuel stations across the country. To date, Excentus has helped more than 10 million consumers save hundreds of millions of dollars on fuel. Excentus currently holds nine patents on the technology behind the cents per gallon model and licenses various uses of its patent portfolio to provide private-label fuel discount programs through its business unit, Centego II, LLC. Headquartered in Dallas, Texas, Excentus was founded in 1996 and is a privately held company with more than 200 employees. For more information, please visit http://www.excentus.com.

Contacts

ThinkInk
Vanessa Horwell, +1-305-749-5342 x 232
vhorwell@thinkinkpr.com

Contacts

ThinkInk
Vanessa Horwell, +1-305-749-5342 x 232
vhorwell@thinkinkpr.com