Learn about loyalty software: what is it, how it works, how businesses use it, & see examples of customer loyalty software.
Customer loyalty software is a marketing tool that helps build and manage loyalty programs. Yes, it is that simple.
Loyalty solutions enable brands to collect and track customer data and reward meaningful interactions, driving repeat business and cutting on crazy acquisition costs. With advanced features such as data analytics, targeted marketing, and integrations with other systems, customer loyalty software is a must-have for any business looking to boost customer loyalty and drive growth. Hopefully, I am talking about you.
Since we all like lists, let’s see what elements are usually included in loyalty software:
Learn why loyalty plugins won’t cut it and why you need a (really) good loyalty platform to succeed
When it comes to building strong customer-brand relationships, loyalty is key. A well-crafted loyalty program will keep your customers coming back for more. It's no wonder that an overwhelming majority of brands – over 90%(!) – have implemented some form of customer engagement or loyalty program. But to succeed in loyalty marketing, you need bespoke loyalty software to help you build and manage your dream campaign. Here are some benefits of using a dedicated loyalty solution:
The evolution of loyalty software has been nothing short of revolutionary. Gone are the days of clunky physical loyalty cards and tedious points collection. Today, the world of loyalty is digital, dynamic, and endlessly customizable. Let's take a look at some of the ways loyalty software has transformed over the years:
The loyalty management software market is experiencing explosive growth and is on track to reach a staggering 23.5% CAGR and $24.44 billion by 2029. It's no surprise that more and more companies are turning to loyalty programs as THE key strategy for driving revenue and growth.
But with such a fragmented market, companies have plenty of options to choose from. From plugins to ecommerce platforms to custom apps developed by digital agencies, all-in-one marketing platforms with loyalty modules, and end-to-end loyalty solution providers, the choices are endless.
I am sure you are tired of hearing this, but the best solution will always depend on the specific needs and goals of your company. Hopefully, you will find this guide helpful in finding the right loyalty software solution for your brand.
Before moving on, it's essential for you to understand the limitations of traditional, monolithic loyalty platforms. While they may offer a wide range of features, they also come with a significant drawback: a lack of flexibility. Legacy solutions often require businesses to adjust their loyalty marketing strategy to fit the platform, not the other way around. To make matters worse, introducing changes often requires updating both the front and backend, prolonging the process and annoying the marketing and development team alike. In today's fast-paced and competitive market, businesses need to be able to act quickly and sadly, legacy software won’t cut it. But not all is lost – enter headless loyalty technology.
Headless technology is revolutionizing the way businesses approach loyalty programs.
The term ‘headless’ derives from the external layer that customers interact with (frontend) being separated from the backend infrastructure, making it easy for businesses to make changes and modifications to the customer-facing apps without disrupting underlying mechanics and data. Plus, with the use of APIs, businesses can seamlessly integrate loyalty programs across all touchpoints for a truly personalized experience.
I am sure you have already asked yourself this question – should I build or should I buy customer loyalty software? It's a classic cruncher faced by marketers and tech teams alike. But the truth is, the choice between building or buying a loyalty solution is a false one. In today's fast-paced business landscape, the best approach is often a combination of both.
Thanks to advancements in technology and the API economy, businesses now have the ability to combine the best of both worlds and cherry-pick the building blocks that make up their loyalty solutions, choosing from a wide range of API-first and headless loyalty engines. This new generation of loyalty solutions offers ready-to-use loyalty and gamification features that can be easily integrated into existing systems.
Think of it like a chef blending ingredients to create the perfect dish. You may have the recipe and the know-how to cook up a tasty dish, but by sourcing the highest-quality ingredients from external vendors, you can elevate the dish to new heights.
See what it takes to build loyalty software from scratch and how this decision can shape your business for the years to come
Once you decide that you need a dedicated loyalty solution, it’s high time to analyze what the loyalty market has to offer. To ease this process, we’ve assembled a list of critical features you have to consider while going through your options.
Here is what a loyalty platform should offer out-of-the-box:
Besides functional requirements, you need to analyze the UX of your loyalty program. Download Voucherify UX Kit for Loyalty Programs from Figma.
When selecting a customer loyalty vendor, it's essential to don a general hat and approach it from a strategic standpoint. Consider both your current and future needs and determine the level of flexibility required for your business. It's also important to consider the ownership and long-term maintenance of the loyalty solution within your organization. Furthermore, be sure to fully analyze the total cost of ownership, including not only the initial license fee but also ongoing costs such as hosting, maintenance, updates, and potential future expansion. By taking a thorough, strategic approach to choosing a loyalty solution, you can ensure that it aligns with your business goals and drives real results.
Here is a cheat sheet of questions you need to answer before choosing a loyalty provider:
Going through hundreds of similar loyalty platforms will definitely take a bigger chunk of your workday. To save you some time, we’ve prepared separate comparison guides, listing and describing the best loyalty vendors:
Creating a loyalty program with Voucherify is a breeze. With our user-friendly platform and robust API, you can quickly design complex loyalty programs with multiple tiers, real-time rewards, location-based promotions and more, saving you precious time and resources compared to building a program from scratch.