loyalty management platform

Loyalty Management Program: The Truth Short Story

There is no doubt that loyalty management is one of the widely discussed terms among retailers in today’s time. If you are in the field of retail, creating a reward system that is unique and makes your business stand out in the world of customer loyalty programs is a complex task. A loyalty program covers different parts of the customer experience. Starting from your website to your stores, and even the backend resources such as marketing, development, finance, and customer service, all are covered under the loyalty management program. It is vital to choose a loyalty management platform carefully to enjoy the assorted benefits of loyalty management programs.

Engage and retain your loyal customers with loyalty management

Loyalty management is all about the use of strategy, tools, and tactics that a company uses to acquire, engage, and keep hold of loyal customers. It helps in targeting the right audiences and offering them the best possible experiences, benefits, and rewards with an intent to drive long-term engagement. Apart from a loyalty program, an all-inclusive loyalty management platform includes an array of elements such as:

  • Loyalty program construct
  • Loyalty program optimization
  • Technology enhancements
  • Rewards and benefits
  • Creative services
  • Member acquisition strategy
  • Member communication and marketing
  • Branded customer service
  • Billing engine
  • Client services, etc.

All the above-mentioned elements require working together for a successful loyalty program. However, managing all these elements may take up a lot of time, resources, technology, and expertise. Due to this reason, a large number of retailers prefer outsourcing some of these elements to some experienced and professional loyalty management company.

Leverage loyalty management software to build customer loyalty

A loyalty management software can help businesses build, manage, and analyze customer loyalty programs with full accuracy. The software is largely used by B2C (Business-To-Customers) companies in the retail, hospitality, travel, and e-commerce sectors. Marketing teams use loyalty management software to increase customer retention, enhance Customer Lifetime Value (CLV), and maximize repeat sales.

In all, customer management software is a business tool that is used to manage customer loyalty data and information. It is a web-based program that allows businesses to identify their potential customers who are likely to make repeat purchases. By identifying the list of potential customers, businesses can encourage them to make more purchases by rewarding them with coupons, gift cards, discounts, and other incenti

Use customer loyalty programs to reward customers

A customer loyalty program is simply a reward system that businesses use to reward their customers who make recurring purchases. No doubt, loyalty programs are on the rise. About 90% of companies have some kind of loyalty program. (Accenture) Around 50% of consumers say their primary reason for joining a loyalty program is to earn rewards on everyday purchases. (PDI)

The rewards can be in the form of discount coupons, free products, reward points, free delivery, early access to newly launched products, etc. The motive behind creating loyalty programs is to boost the number of loyal customers for a particular brand. These types of programs encourage customers to make regular purchases. To achieve the desired success, businesses must have the right loyalty program that motivates customers to come back again and again and make purchases.

Since the competition in the marketplace is fierce and growing at a rapid pace due to the availability of similar products, it becomes critical to stand out from the competitors and maintain a loyal customer base. Loyalty programs are necessary to gain a competitive edge in the marketplace. When implemented carefully, loyalty programs result in improved customer retention rate and increased profits by 25 to 95%.

Types of loyalty programs

Though there are several types of loyalty programs. Some of the widely used loyalty programs are explained below:

  • Point-based loyalty program:

    Point-based loyalty program is a widely used loyalty program strategy. AS the name suggests, it is a point-based strategy which means that the customers that shop usually get some points. These points can be exchanged for a freebie, discount coupon, or to avail any other special offer. If you are planning to use a points-based reward program, it is advisable to keep the interaction straightforward and intuitive. Though it is one of the most popular loyalty program strategies, this program is not suitable for all types of businesses. So, who can use this program? Well, businesses that promote frequent, short-term purchases can use this program to enjoy its complete benefits.

  • Tiered loyalty program:

    Certain companies find it difficult to keep a balance between the most appealing and achievable rewards. To overcome this challenge, businesses can use a tiered loyalty program. This type of program helps to reward initial loyalty and promotes further business. If you are thinking about how to use this program, then here is the answer. You can present minimal prizes as a starting point to join the program. After this, you can slowly increase the value of the awards based on the customer’s progress to the loyalty ladder.

  • Paid (VIP) loyalty program:

    Another most popular type of loyalty program is the paid (VIP) loyalty program. This type of program involves a one-time or yearly fee that lets customers avoid usual purchasing barriers. This benefits both the business as well as the client in a few cases. You can even customize a fee-based loyalty program to address and manage certain issues that are causing your customers to leave your brand. Many customers discontinue online shopping after looking at the additional charges (tax and shipping charges) in the total sum. To prevent such a situation, businesses can try offering a loyalty club like Amazon Prime that offers free shipping and various other benefits to its prime members.

Apart from the above-mentioned loyalty programs, other popular programs include value-based loyalty programs, coalition loyalty programs, and game-based loyalty programs.


Hope the above guide is helpful for you in gaining knowledge about loyalty management programs and their benefits. If you are looking for the best loyalty management platform, then you must request a free demo with LoyaltyXpert. The professional team at LoyaltyXpert has deep know-how of the current market scenario and the best practices to drive customer loyalty. These experts can help businesses to create the best suitable loyalty programs that lead to improved customer loyalty and increased profits.