OCBC Bank and StarHub have partnered up to jointly develop Singapore's first loyalty alliance to allow Singaporean consumers loyalty rewards. Slated to launch this year, the Coalition Loyalty Programme is said to be the next step of the "We Economy" initiative jointly announced by both brands.
This programme aims to bring on board key players from ten industries, namely financial services, telecommunications, travel, insurance, retail, hospitality, food and beverage, grocery, petrol and transport. Following the launch, consumers will be able to utilise the cross-industry loyalty platform to accumulate and convert their rewards points and air miles across different partners and merchants via an online tracking dashboard. Additionally, coalition partners will also be able to expand their base of customers, and build stronger brand association and data analytics to drive deeper customer engagement, the press statement read.
According to OCBC Bank's estimate, the average redemption rate of a typical standalone loyalty programme is 50-70%, which is a relatively low usage rate. This can be attributed to multiple reasons such as consumers not having sufficient points to make a meaningful redemption, not being aware of the points expiry date, or having forgotten to redeem the points.
Thus, the new alliance aims to increase the redemption rates significantly with the consolidation of points, making it easier for consumers to redeem their desired rewards. This sees both OCBC Bank and StarHub highlighting the issue on rewards wastage, and their objective of reducing it to benefit consumers.
Currently, the Coalition Loyalty Programme has roped in a total of seven partners across seven industries. Among the list of brands joining the programme include AirAsia BIG Loyalty, Frasers Property Singapore, Great Eastern, Millennium Hotels and Resorts, and Robinsons Group. Apart from OCBC Bank and StarHub, five other partners will be also integrated into the loyalty platform later this year, and the brands are currently in talks with other market leaders to bring them in the programme progressively.
"One of the key driving forces behind the creation of our ‘We Economy’ is to go beyond banking, and leverage the strengths of partners across various industries. This Coalition Loyalty Programme is exactly that. We want to proactively create a community of engaged members, rather a run-of-the-mill loyalty programme,” Desmond Tan, head of group lifestyle financing, OCBC Bank said.
Echoing the statement, Howie Lau, chief marketing officer, StarHub added that the brand saw an opportunity to innovate in the loyalty and rewards space to service its customers better in this increasingly collaborative world.
"By deepening our strategic partnership with OCBC Bank and further breaking down the walls between industries, customers will be able to enjoy unparalleled flexibility in how they amass and utilise their points and miles, across programmes, partners and merchants. In all that we do, we want to deliver to our customers more rewarding experiences, enhance customer satisfaction and remain their trusted brand of choice,” Lau said.