This will allow consumers to exchange, consolidate, and redeem loyalty reward points and air miles.
OCBC Bank and Starhub is set to launch by late 2018 the first loyalty alliance in the country as part of the two companies joint Singapore-centric ‘We Economy’ initiative. The Coalition Loyalty Programme will allow consumers to exchange, consolidate, and redeem loyalty reward points and air miles, an OCBC Bank announcement revealed.
Along with OCBC Bank and Starhub, AirAsia BIG Loyalty, Frasers Property Singapore, Great Eastern, Millenium Hotels and Resorts, and Robinsons Groups are included as partners for the programme. The two firms are also in talks with other market leaders that may join the programme.
“The Coalition Loyalty Programme aims to bring on board key players from ten industries – financial services, telecommunications, travel, insurance, retail, hospitality, food and beverage, grocery, petrol and transport,” OCBC said.
Consumers will be able to utilise the cross-industry loyalty platform through online tracking dashboard where they can monitor the expiry dates of their loyalty points and be aware of the available points any time and the rewards to redeem. OCBC Bank and StarHub customers can already access exchanging their existing loyalty rewards through the respective websites of the two companies.
OCBC noted that 70% of consumers are participating in at least one of the 400 loyalty programs in the Lion City. However only 50% to 70% of these consumers are able to get redemptions from standalone loyalty programmes, according to the bank’s estimates.
“This relatively low usage rate may be a result of 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,” OCBC said.
“We want to proactively create a community of engaged members, rather a run-of-the-mill loyalty programme,” OCBC Bank group lifestyle financing head Desmond Tan commented.
The bank believes that the programme will significantly increase the redemption rates because the consolidation will make it easier for consumers to redeem their awards.
“With the creation of an online tracking dashboard, consumers will also be able to monitor the expiry dates of the loyalty points and be aware of the available points any time and the rewards to redeem,” the bank added.
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