Maximizing Multi-Brand Loyalty: Strategies for Enterprise Brands

Imagine a customer loyalty program where every interaction—whether it’s a shopping spree, a hotel stay, or a gourmet dining experience—adds value to your customer’s rewards balance, no matter which brand they engage with. This is the transformative power of a multi-brand loyalty program.

However, implementing a multi-brand loyalty program isn’t a one-size-fits-all solution. While there are many ways to design and execute these programs, it’s crucial for enterprises to choose a strategy that aligns with their unique business goals and customer preferences, rather than relying on a generic, cookie-cutter approach.

In this blog, we’ll dive into how you can unlock the full potential of multi-brand loyalty programs to deliver exceptional customer experiences. We’ll explore the key benefits, examine practical strategies, and showcase real-world examples that demonstrate how leading brands are leveraging this approach to achieve remarkable results.

What is a Multi-Brand Loyalty Program?

A multi-brand loyalty program is an integrated loyalty system that allows customers to engage with multiple brands within a conglomerate or strategic partnership. Unlike single-brand programs, these initiatives provide customers with a broader spectrum of rewards, experiences, and opportunities by linking several brands together under a unified program.

The key to a successful multi-brand loyalty program lies in its ability to offer a more diversified and enriched customer experience. Customers can interact with a variety of brands, accessing a wider range of benefits that cater to their diverse needs and preferences. This approach not only increases customer engagement across multiple brands but also helps companies cross-sell, up-sell, and deepen customer relationships across their entire portfolio.

Key Benefits of Multi-Brand Loyalty Programs

1. Cross-Brand Flexibility

The ability to earn and redeem points across multiple brands provides customers with unparalleled flexibility, greatly enhancing their overall experience. For conglomerates, this cross-brand interaction increases the likelihood of cross-selling, upselling opportunities, and even cross-promotions to drive overall revenue and deepen customer relationships across the brand spectrum.

2. Deepen Existing Customer Profiles

To create multi-brand engagement, loyalty programs often use shared customer data to create highly personalized experiences, meeting the growing expectations of today’s consumers. By analyzing data across various touchpoints and brands, companies gain a deeper understanding of customer preferences and behaviors. This allows them to craft tailored offers, recommendations, and communications that resonate more effectively. For instance, a customer who regularly shops at a high-end clothing brand might receive exclusive offers for luxury hotels or premium dining experiences that match their preferences.

3. Better Customer Experiences

By offering more options and better rewards, multi-brand loyalty programs greatly enhance perceived value for customers. With access to exclusive experiences, higher-value discounts, and special events, these programs provide layers of value that single-brand programs often can’t match. This increased value boosts customer satisfaction and loyalty, encouraging customers to stay within the program’s ecosystem and consistently choose the associated brands over competitors.

Picking the Right Strategies for Multi-Brand Loyalty Success: Capillary’s Approach

• Maintaining a Unified Brand Experience Across Geographies

In today’s global marketplace, maintaining a consistent loyalty program structure across different regions is essential for conglomerates. This ensures that customers experience the same brand feel, structure, and benefits, no matter where they are located. Disparities in branding and program execution can lead to confusion, eroding customer trust and loyalty.

Take ASICS, a renowned sports brand with a presence across the globe. In the Philippines, ASICS operates under the conglomerate SONAK Group, with its loyalty program managed by Capillary. While ASICS has its own loyalty program across several regions, we ensured that ASICS’s loyalty program under the SONAK Group maintained the same structure, branding, and customer experience as in other countries. This consistency fosters a seamless brand experience, reinforcing customer loyalty regardless of geographical differences.

• Tailored Rewards for Distinct Brand Perceptions

A general rewards structure for most multi-brand loyalty programs has been the redemption of rewards across all the brands under the conglomerate. However, based on the brand perceptions and status quo, this might not always work.

Aditya Birla Fashion Retail Limited (ABFRL) exemplifies how to navigate this challenge. Their portfolio includes brands like Van Heusen and Peter England, each with a distinct market positioning. Offering Van Heusen’s premium customers the ability to redeem rewards across less premium brands like Peter England could diminish the perceived value of their loyalty. Instead, ABFRL strategically uses customer data to send tailored promotions for its other brands, ensuring that while cross-brand engagement is encouraged, it does not undermine the perceived status of any brand. This approach respects customer sentiment and maintains the exclusivity that premium customers expect.

Aditya Birla Fashion Retail Limited (ABFRL) exemplifies how to navigate this challenge. Their portfolio includes brands like Van Heusen and Peter England, each with a distinct market positioning. Offering Van Heusen’s premium customers the ability to redeem rewards across less premium brands like Peter England could diminish the perceived value of their loyalty. Instead, ABFRL strategically uses customer data to send tailored promotions for its other brands, ensuring that while cross-brand engagement is encouraged, it does not undermine the perceived status of any brand. This approach respects customer sentiment and maintains the exclusivity that premium customers expect.

• Omnichannel Engagement Through a Super App

For conglomerates with diverse brands spanning multiple verticals, a super app can serve as a powerful tool for omnichannel engagement. A super app not only facilitates cross-brand reward redemption but also simplifies the tracking of points, making the entire loyalty experience more seamless and integrated for the customer. In fact, super apps are gaining a lot of popularity among conglomerates and enterprises, especially in the APAC region.

Tata Neu by Tata Digital is a prime example. This super app allows customers to redeem rewards across various Tata brands, from retail to hospitality, while offering a unified platform for managing loyalty points. Such an integrated approach enhances customer engagement by providing a holistic brand experience under one digital roof.

• Starting Small with Microsites

While super apps make sense for well-established brands with diverse brands under their umbrella, not every multi-brand loyalty program requires a fully-fledged app from the outset. For conglomerates just beginning their loyalty journey, microsites offer a more flexible and cost-effective option.

For instance, the SONAK Group, which focuses on sportswear and athleisure products in the Philippines, recently launched its loyalty program with Capillary’s loyalty program software. Since the program is initially limited to two of their brands, we started with microsites rather than a comprehensive app. Microsites allow the SONAK Group to test and refine their loyalty strategies without the significant investment and time required to develop an app. This phased approach enables them to build customer engagement gradually while keeping the door open for future expansion into a more robust digital platform.

Conclusion

Implementing a multi-brand loyalty program is a game-changer for any enterprise, but finding the right fit for your unique needs can be a challenge. At Capillary Technologies, we’re here to make it easy.

We’ve worked with some of the biggest names in the industry, helping them create tailored, successful loyalty programs that stand out and drive real engagement. Our innovative solutions have earned us awards and accolades for excellence in loyalty program design.

Book a demo with us, and let’s explore together how Capillary’s loyalty program software can craft a multi-brand loyalty program that perfectly aligns with your business goals and delights your customers.

Share

With a knack for creating engaging content and crafting effective social media campaigns, Anjali wants to make it her mission to leverage the power of content as a strategic marketing tool for businesses. While she is not working, she is either binging movies or writing about them on her blog.