Coalition Loyalty Marketing

Brazil: Dotz coalition continues to grow

Dotz coalitionWith over 15 years of successful growth in the challenging Brazilian marketplace, the Dotz loyalty coalition has proven to be a continued success story even as several longstanding coalition programs have suffered setbacks. Now, Dotz CEO Roberto Chade has announced an ambitious goal: In spite of Brazil’s currently tumultuous economic situation, Dotz has set itself the challenge of doubling in size in three years, reaching revenue of R$1 billion. Can Dotz continue to dominate the Brazilian loyalty landscape? Stay tuned.

By Wise Marketer staff.

Created as an online-only program in 2000, Dotz later expanded to brick-and-mortar retail where customers participate in a single program whenever they make purchases at various establishments, earning the same type of points. Founded by Brazilian businessman Roberto Chade, Dotz formed an international partnership with Air Miles owner Loyalty One in 2009, with Loyalty One holding a 37 percent stake in the program.

Seeking to boost earnings and expand the profitability to partnering retailers, while it allows consumers to use their daily purchases to get more out of life, increasing the purchasing power of Brazilians, Dotz is now the fastest growing coalition loyalty program in the country. Dotz currently has more than 23 million clients, more than 300 partners, 8,200 brick-and-mortar partner establishments, physical presence in 690 cities across 12 states, and more than 160 online partners that allow people from all over Brazil to take part in the loyalty program. With this array of partners, customers earn Dotz in their daily purchases and then redeem them for products, plane tickets, supermarket vouchers, or pay their water, electric, or phone bills, and much more. Dotz can be redeemed for more than 50,000 products and experiences. The company registers an average of 900 Dotz distributed every second, and close to 10,000 redemptions every day.

Among Dotz’s main partners are major brands familiar to every Brazilian, such as Banco do Brasil, Banco Santander, Vivo, Polishop, Ri Happy, the Super Nosso, Big Box, Angeloni, Paulistao, and Prezunic supermarkets, Posto Ale, Atlantica Hotels, Walmart.com, Americanas.com, and Submarino.com. If Dotz were classified as a retailer, considering the unified revenue at the company’s 17 partner food retailers, Dotz could be said to be the 4th-largest supermarket group in Brazil.

In spite of Brazil’s currently tumultuous economic situation, Dotz has set itself the challenge of doubling in size in three years, To achieve its ambitious goal of doubling in size every three years to reach revenue of R$1 billion, Dotz will focus on the following pillars of growth:

  • Entering new locations: With a physical presence in major Brazilian cities, Dotz now plans to set up shop in strategic cities such as São Paulo, Salvador, and Porto Alegre.
  • New businesses: The company’s new fronts of action will be along the markets of coalition incentive campaigns, utilities – with the distribution of Dotz to clients of electric companies such as Elektro – and entry into the Insurance business, where the company will distribute Dotz to holders of insurance plans.
  • Growing its client base: with more than 23 million clients, Dotz continues to report constant growth in the markets where it has already consolidated its presence, and has forecasts to capture new clients as part of its expansion plan.
  • Expansion in consolidated markets: In states where Dotz has a strong presence in the capital cities, the company now plans to expand its activities into cities in the interior of those states.
  • New partners: Both in e-commerce and at brick-and-mortar retailers, Dotz is constantly working to capture new partners, and its results have attracted the interest of major Brazilian retailers, who see in the coalition program an opportunity to create even more customer loyalty.
  • Partnerships with industry: The food and beverage industry has increasingly relied on the program by providing Dotz Extras to customers, making it so that products sold in partner supermarkets offer more benefits to consumers, who end up earning more Dotz in their daily purchases.

With 17 years of success behind him, CEO Chade remains confident in the future of Dotz in Brazil. When we interviewed Chade earlier this year, he was bullish on the program’s potential to lead the loyalty revolution. Money quote:

“For the core Dotz business, we’re developing AI and machine learning capabilities that will really enhance everything we’re doing. These capabilities will allow us to be more efficient and relevant in our partner promotions. Through our Dotz Labs department, we follow and develop technologies that will allow us to continually evolve our program. We want to be a leader in those new technologies… We’re continuing to add value and benefits for both our collectors and our sponsors, and we have the ambition to be one of the top loyalty programs not only in Brazil, but in the global landscape for many years to come.”

We wish Chade and Dotz success in their ambitious goals—goals that, once achieved, will benefit Brazilian consumers and brands alike.

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