Bill Hanifin
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The conversation about Coalition loyalty usually revolves around familiar names, Aeroplan, Airmiles, Nectar. That’s for good reason as these programs have been established for many years and operate in stable economies with mature loyalty markets (US, Canada, UK).
There are in fact more than 30 such programs around the world in markets including Brazil, Norway, Malaysia, Peru, Poland, Russia, Singapore, and South Africa. If you read this list and sense that there is one familiar name missing, you’re right. There is no multi-partner coalition program operating in the good ‘ole USA. At one time, UPromise would have been offered as an example of a US coalition, but its narrow focus as a 529 Savings Plan sets it apart from coalitions that impact daily spend categories and provide consumers reward options from movie tickets to a free dinner.
Zavee is a social shopping network and effectively a coalition loyalty program as it links over 300 merchants in South Florida to bring value to the everyday consumer. Kickback points is another form of coalition, linking independent convenience stores and gas stations in the West through a common loyalty currency. Thanks Again is a third example of multi-partner loyalty with a focus on delivering value to the frequent traveler by rewarding parking and purchases at airline restaurants and shops. All worthy in their own right, these programs have either a category or geographic concentration and are working towards claiming national recognition. The coalition we’ve been waiting for – the one that spans the country – may still come and we stand in the wings, waiting and watching.
Overlooked in this landscape are a few gems that dominate their home markets and offer special capabilities worthy of mention. One of these is Fun Miles, the biggest, brightest, and – of course – most fun program in the Caribbean. In operation since 1998, the program operates across Aruba, Bonaire, Curacao and St. Maarten. I had the opportunity to attend the Fun Miles annual conference this summer and spend time with CEO Harmen Donker. A native of the Netherlands, Harmen has a storied career in loyalty, working with multiple Benelux based loyalty program operators as both client and consultant.
Fun Miles has blanketed the “ABC” islands with membership exceeding 125,000 and coverage of about 50% of the population. Over 165 merchants participate in Fun Miles through 300 locations, issuing a points currency that members can rack up and redeem for rewards both large and small. The daily transaction counts are large (mid – 5 figures) and growing. This high engagement rate between consumers and Fun Miles is reflected in strong satisfaction levels and is supplemented by use of special end of year campaigns such as games and scratchcards.
Fun Miles has made good use of the unique characteristics of its markets and population, introducing tools to keep the young, highly mobile populations paying attention to their program and the merchants which participate. Every program should have an interactive website, but Fun Miles has one that is exemplary. They have added a mobile website and – drum roll please – allow members to swap their points at the cashier (POS) when making purchases with a participating merchant. The simplicity and immediacy of POS rewards meets the needs of Generation Y and the digital immigrants (people like me) they have inspired.
One reason for the success of Fun Miles is its association and long term partnership with important brands in the market. The leading hardware and do-it-yourself chain, Kooyman, is an earning and redemption partner as well as a key shareholder. Fun Miles also has a strong relationship with Maduro & Curiel’s Bank, the leading bank in the market. The bank has a closed loop credit card (one of only two in the region – the other being Keycard in Jamaica) and Fun Miles members can earn more miles by making purchases with the Kompa Leon credit card issued by the bank.
There’s an old saying that you get “sand in your shoes” when you venture to an island and never want to leave. In the Caribbean islands formerly known as the Netherland Antilles, you can also get Fun Miles in your wallet!
