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Mercator study asks: Can coalition loyalty programs succeed in U.S.?

Wednesday, August 31, 2016 — 14:07:27 (EDT)

Boston, Aug. 31, 2016 -- Popular with merchants and consumers in some global regions outside the United States are coalition loyalty programs, which are shopper-based incentive programs sponsored by retailers and service providers. American Express launched its merchant coalition loyalty program Plenti in 2015 for U.S. consumers. Patterned after some successful international programs, Plenti began with a list of highly recognizable retail brands.

Mercator Advisory Group’s latest research note, Can Coalition Loyalty Programs Succeed in the United States? observes and assesses the features and functionality of coalition loyalty. The note pays particular attention to Plenti and the ups and downs of its first year in existence. Additionally, the coalition loyalty model and Plenti are sized up against the single-merchant loyalty model as exemplified by Starbucks Rewards.

“U.S. consumers are no strangers to loyalty programs, especially those offered by credit card networks, issuers, airlines, and hotels. Whether Plenti will successfully strike a high note by driving traffic to major U.S. retailers remains to be seen,” comments Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group and the author of the research note.

Highlights of the research note include:

• Background of international coalition loyalty programs

• U.S. consumers’ credit card spending preferences

• Structure and workings of Plenti program and its merchant partners

• Comparison with single-merchant loyalty program Starbucks Rewards

• Challenges and lessons learned for coalition loyalty

This document contains 12 pages and 6 exhibits.

Companies mentioned in this research note include: Alamo, American Express, AT&T, Direct Energy, Enterprise, Expedia, Exxon Mobil, Hulu, Macy’s, National, Nationwide, Rite Aid, and Starbucks.

Members of Mercator Advisory Group’s Credit Advisory Service, Debit Advisory Service, and Global Payments Advisory Service have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits. Please visit us online at www.mercatoradvisorygroup.com .

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, send e-mail to info@mercatoradvisorygroup.com . For free industry news, opinions, research, company information and more visit us at www.PaymentsJournal.com . Follow us on Twitter @ twitter.com/MercatorAdvisor .

About Mercator Advisory Group: Mercator Advisory Group is the leading, independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com .

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Source: Company press release.