Abstract
Loyalty programs are everywhere these days, and among them, coalition programs, where a hub company makes a network of participating companies and users can collect and use points in a large number of participating shops, are in increase. There is little research on the coalition loyalty program. Using the case of OKCashbag, the first and biggest coalition loyalty program in Korea, this study examines whether success factors of single operator program are relevant to coalition programs. This paper contributes first by turning attention to an unexplored area of coalition loyalty programs. By offering an opportunity to reflect on success factors of both single operator and coalition programs, it will help practitioners in loyalty programs to develop innovative loyalty programs using increasingly sophisticated data collection capabilities of IT.
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