SINGAPORE: OCBC Bank and StarHub announced on Thursday (Jun 7) that they are developing a "loyalty alliance", which will let consumers earn and redeem rewards points and air miles interchangeably with partner companies.
Set to launch later this year, the Coalition Loyalty Programme currently has seven partners - OCBC, StarHub, AirAsia, Frasers Property Singapore, Great Eastern, Millennium Hotels and Resorts, and Robinsons Group.
It aims to feature key players from 10 industries - financial services, telecommunications, travel, insurance, retail, hospitality, food and beverage, grocery, petrol and transport.
The two companies said that there are 400 loyalty programmes in Singapore, but the average redemption rate of a typical standalone loyalty programme is 50 to 70 per cent, based on OCBC'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," the companies said.
OCBC and StarHub said they want to "substantially reduce the wastage" of rewards with their new programme, as the consolidation of points will make it easier for consumers to redeem rewards.
Customers from the two companies can already exchange points and miles between their loyalty programmes through their websites, and the five other partners will be added later this year, according to the press release.
For example, StarHub customers can now convert 100 StarHub Rewards Points into 350 OCBC$, while OCBC Voyage credit card holders can get 160 StarHub Rewards Points by converting 100 Voyage Miles, the companies said.