Coalition loyalty programs are experiencing a significant revival, albeit with contemporary modifications that address the shortcomings of their predecessors. With the global loyalty market projected to reach $214.7 billion by 2028, according to the Global Loyalty Programs Market Intelligence and Future Growth Dynamics Databook, the trend towards coalition programs is expected, at least in part, to be a key driver of that growth, offering consumers a clear and enticing value proposition as well as increased flexibility.
by Sarah Jarvis
While high-profile coalition initiatives like American Express’s Plenti and New Zealand’s Flybuys faced difficulties in the past, retailers are now revisiting these multi-brand reward systems with renewed interest, empowered by technological advancements and AI-driven personalization capabilities that were previously unavailable. These new technologies are enabling coalition programs to maintain relevance and utility among consumers, heightening their value through tailored rewards, dynamic content, and a broad spectrum of engaging offers.
The Enduring Appeal of Multi-Brand Rewards
The fundamental value proposition of coalition loyalty programs remains compelling. Consumers continue to appreciate the convenience and accelerated earning potential of accumulating rewards across multiple brands within a single program. For retailers with lower-frequency shopping patterns, partnerships with high-traffic businesses like grocery stores create opportunities to engage with customers more regularly, extending their relationship beyond occasional transactions. Conversely, high-frequency retailers benefit from a coalition “halo” effect, as their customers can redeem points for activities they enjoy with other participating brands, often at a low cost to the retailer itself.
Recent studies support this ongoing appeal. According to Bond’s 2024 Loyalty Report, 79% of consumers say they’re more likely to shop with brands where they are loyalty program members, and 85% of consumers say loyalty programs make them more likely to continue doing business with brands. The previous year’s report found that 60% of members want to engage with loyalty programs via digital channels, including mobile apps and websites, as these channels offer the most convenient and personalized loyalty experiences. This consumer preference highlights the importance of technological infrastructure in modern loyalty programs, which applies to single-brand programs as well as coalitions.
Technological Evolution Enabling Coalition Success
It is with that very infrastructure that previous coalition programs struggled. Data integration was cumbersome, personalization options were restricted, and real-time insights were practically nonexistent. However, today’s technology has matured considerably, offering solutions to these historical challenges. 
Linking customer data across touchpoints is a critical factor in loyalty program success. Companies with highly effective loyalty programs are more likely to have integrated their customer data across channels compared to companies with underperforming programs. Likewise, effective coalitions rely on using shared customer data that enables partners to deliver personalized offers based on individual preferences. While data privacy concerns remain a challenge, programs are navigating this by using anonymized data and implementing strong data-sharing agreements between partners.
The ability to connect data, manage it responsibly, and action the insights it generates in real-time is what separates good loyalty programs from great ones. For coalition programs, the technology has finally caught up to the ambition.
Contemporary Success Stories in Coalition Loyalty
Several recent and established multi-brand loyalty programs demonstrate how technology has restored the viability of the coalition model. Each of these programs connects customers to a network of brands under the traditional coalition value proposition while also leveraging personalization, AI, and machine learning to provide a more dynamic and modern loyalty experience to members.
- Fuel Rewards: This program connects gas stations, convenience stores, and participating retailers, and has over 30 million members in the United States. The program allows members to save at least 3¢/gal on every fill-up and has expanded its partner network to include major grocery chains and dining establishments.
- Nectar: This UK-based coalition program includes brands like Sainsbury’s, Esso, and eBay. By leveraging shared customer data, Nectar tailors promotions to individual preferences, increasing the relevance of offers.
- Zillion: Formerly PayBack India, Zillion is one of the world’s largest coalition loyalty programs, reportedly serving over 100 million active users globally across 10 countries. In India alone, the program connects over 100 retail partners across categories including grocery, fuel, banking, and e-commerce.
- Rakuten: Originally an e-commerce platform, Rakuten has evolved into a significant coalition loyalty ecosystem. According to their 2023 Annual Report, Rakuten’s program connects more than 70 million members with over 3,500 stores in Japan alone.
Collectively, these programs illustrate the power of digital-first coalition approaches – if the technology is in place to support them.
Asia-Pacific is Leading the Coalition Resurgence
As some of the examples listed above indicate, the revival of coalition loyalty is particularly evident in the Asia-Pacific region, where consumers have historically demonstrated strong receptivity to multi-brand reward programs. According to KPMG’s “The Truth About Customer Loyalty” global study, 96% of consumers in China participate in loyalty programs, compared to 74% in the US. This propensity shows a sustained enthusiasm for loyalty programs in the region, which suggests an opportunity for overall loyalty program proliferation and growth.
It’s also why the region is seeing new coalition programs emerging with substantially different – and more advanced – models at their core.
As Jonathan Reeve, Vice President of Eagle Eye for the APAC region, notes, “In Asia-Pacific markets, particularly Southeast Asia, we’re seeing coalition loyalty programs rapidly evolve beyond traditional models. These programs are leveraging digital ecosystems, super-apps, and advanced data analytics to create seamless customer journeys across multiple brands and touchpoints, and we are already seeing businesses in this region exploring ways to build simple and more cost-effective coalition programs using modern technology.”
AI-Powered Personalization Driving 2025 Growth
As we move through 2025, the retail industry is witnessing a dramatic shift toward AI-powered personalization at scale, a phenomenon Eagle Eye examines in depth in our Ultimate Guide to AI for Personalization & Retail Marketing. Technologies that were experimental just a few years ago have become operational necessities for competitive loyalty programs.
According to Deloitte’s 2024 Retail Industry Outlook, 68% of retail executives believe that enhancing data analytics capabilities is critical to improving personalization efforts. The report further notes that retailers implementing AI-driven personalization can achieve a 10-15% increase in conversion rates and a 20-30% increase in customer lifetime value. The opportunity is enormous, and first movers will reap the benefits.
Similarly, the recent Forrester report, Use Personalization To Activate Loyalty Program Value, found that retailers who use advanced personalization tools like next-best-offer decisioning and journey orchestration can better predict what customers want next and create more engaging shopping experiences to drive overall performance. Coalition programs can pursue these strategies and technologies to a similar effect.
First-Party Data Integration: Creating Seamless Experiences
Becoming a personalization leader starts with rich customer data. AI can perform better with larger datasets, but execution is critical; even great data is ineffective without actionable strategies. To deliver truly seamless customer experiences, brands participating in modern coalition programs are increasingly integrating first-party data across loyalty initiatives and marketing channels. This integration creates a more unified and responsive ecosystem that can adapt to customer behavior in real-time.
Retailers participating in modern coalition programs are prioritizing high-quality first-party data collection through value-driven experiences and customized digital tools. Rather than simply gathering data for its own sake, they’re focusing on information that enables meaningful personalization.
That focus will pay off: research from Boston Consulting Group (BCG) projects that retailers leading in personalization will capture $570 billion in global growth by 2030, reinforcing the competitive advantage of mastering customer engagement through first-party data.
The Path Forward: Balancing Technology and Strategy
For coalition loyalty programs to succeed in 2025 and beyond, technology enablement must be balanced with a strategic focus. The failures of past coalition programs often stemmed from trying to be everything to everyone, diluting their value proposition, and complicating their implementation. Spread too thin, the previous generation of coalition loyalty faded to irrelevance.
On the other hand, today’s successful coalition programs will be marked by complementary partner selection, seamless technical integration, and consistent value delivery across touchpoints. The most effective programs will focus on meeting customer needs and expectations while leveraging advanced capabilities to deliver value more efficiently. Whether that means utilizing AI to generate unique reward bundles and customized cross-brand challenges or leveraging advanced personalization capabilities to create “just-for-me” offers and interactions, the modern coalition program will be tech-forward and customer-centric.
As coalition loyalty programs continue their technology-fueled renaissance, the lessons from both past failures and current successes will shape a new generation of multi-brand reward ecosystems—ones built on technological capability, strategic focus, and an unwavering commitment to delivering customer value.
Sarah Jarvis is Communications and Propositions Director at Eagle Eye the SaaS technology company enabling retail, travel, and hospitality brands to earn the loyalty of their end customers by powering their real-time, omnichannel and personalised consumer marketing activities.
Photo by Francesco Bianco on Unsplash
