Loyalty programs are utilized by numerous businesses as a component of their marketing strategy, aiming to further motivate their already loyal customers to continue returning. Fortunately, the availability of customer loyalty program software simplifies the management of these reward programs.
In this comprehensive guide to loyalty program software, we will assist you in answering these questions: What exactly is loyalty program software? How can you make comparisons between customer loyalty software to determine the best option for your business?
Loyalty Program
Setting up a rewards or loyalty program is a beneficial method to enhance the probability of customers returning. These programs also contribute to the improvement of customer retention and profitability.
A rewards program called a loyalty program, different from a referral program, is designed to reward customers who make frequent purchases in order to foster customer loyalty.
A reward is given in the form of a discount, free item, or specific merchandise within a customer loyalty program, which is earned after a customer completes a certain number of qualifying purchases. Loyalty programs are utilized by various businesses like airlines, restaurants, and ecommerce retailers.
In the past, customer loyalty programs typically involved the use of a reward tracking card. However, with the advancements in technology, customer loyalty software has become widely accessible. Now, instead of relying on physical cards to keep track of purchases, customers can track their activities within a mobile application.
Advantages of loyalty program software
Here is an overview of the main benefits of using software to run a loyalty program: Why should software be used for running a loyalty program?
1. Allows customers to go without using a card
Program members can store their loyalty program information on their phones, eliminating the need to remember a physical card and ensuring maximum convenience and reward.
2. Flexibility is rewarded.
If your business desires, design your program and rewards in a way that meets the specific needs of your business. You can set up multiple rewards, conditions to earn rewards, and reward structures.
3. Thoroughly monitoring the progress.
By gathering and combining data on customer behavior, loyalty program software enables you to create and modify a program that genuinely incentivizes customers to continue making purchases from your business.
The process of automating marketing tasks and processes.
To cut down on time and inconvenience of carrying out regular tasks, automate the process of award distribution once they have been earned.
Reward program ideas for small businesses
Now that you have grasped the advantages of a loyalty program for your business, let’s explore some concepts for designing your reward program.
1. Provide free offers and upgrades
One effective method to motivate customers to make more purchases is by providing them with additional value for their purchase.
One possible rephrasing could be: Consider offering buy-one-get-one promotions that enable customers to receive a complimentary new product upon purchasing one of the top-selling items. This way, customers can try out the new item at no cost and if they enjoy it, they are more inclined to make a purchase once it is officially released.
In addition, if your product is a software or application that requires regular updates to improve user experiences, you can provide loyal customers with complimentary upgrades to the most recent version. By doing so, you not only maintain your existing customer base but also attract new customers through enticing rewards.
2. Create a punch card or a point-based system
Small businesses in the retail or food and beverage industries could consider using a punch card as a cost-effective reward program. Whenever a customer makes a purchase that meets a certain value threshold, their card will be punched. Once they accumulate enough punches, they can redeem them for rewards like a 10% discount or a complimentary item.
By enabling customers to earn reward points for each purchase, you can provide them with an opportunity to receive discounts on their subsequent purchases. The amount of points they receive increases with the quantity of their purchases, incentivizing them to make repeat purchases and remain loyal to your business.
3. Create a VIP club
One additional method to foster customer loyalty involves the establishment of a VIP club. By becoming a member of this club, customers become eligible for exclusive benefits such as advanced access to new products, complimentary samples, limited-time offers, and additional perks.
If you are a small business, you have the ability to create a reward program without spending too much money, which is beneficial for gathering valuable customer data to use in targeted marketing campaigns later on.
4. Offer birthday and anniversary gifts
A great way to express gratitude and foster a strong brand connection with customers is by presenting them with unexpected gifts and greeting cards during special occasions such as birthdays or anniversaries.
New Epsilon states that brands that offer personalized experiences are likely to see an increase in customer purchases by 80%. Consequently, these tailored campaigns have the ability to foster customer loyalty, transforming them into trustworthy influencers who are willing to recommend your brand to their loved ones.
5. Take advantage of partnerships
You can maximize the benefits of your reward program by utilizing partnerships along with your existing resources.
It is beneficial to collaborate with neighboring businesses to offer mutual discounts, joint promotions, or special events, aiming to encourage customers to make frequent purchases at your store. It is recommended to seek out businesses with similar customer bases to facilitate the creation of cross-promotional activities more effortlessly and organically.
Software to build reward programs for small businesses
1. Giftbit
Using Giftbit’s loyalty program software allows you to easily acknowledge, compensate, and motivate your audience by delivering gift cards. Through Giftbit, you have the opportunity to choose from numerous popular gift card brands, including Visa and Amazon.
When considering step by step, you have the option to choose from a variety of gift card brands for the recipient or for donation. Giftbit stands out as one of the most economical options for loyalty software, especially for extensive campaigns.
Companies utilize Giftbit in order to acquire new users, enhance sales figures, and obtain valuable insights for growth. In the year 2016, Giftbit underwent an expansion that involved the addition of a supplementary platform known as Lightrail. Lightrail is equipped with various resources that enable merchants to manage their own branded currency. By integrating Lightrail’s point accumulation system with Giftbit’s automated reward fulfillment, businesses can effectively establish a comprehensive solution for loyalty and rewards.
Giftbit provides comprehensive reporting on the status of every gift card, unlike other solutions that offer no visibility on whether the cards are ever claimed. This allows your company to gain greater insights on your program and easily analyze its ROI.
Some advantages of this loyalty program software:
- Cost efficiency: You don’t hold any gift card inventory. You also get credit for the gift cards people don’t use, and thus save an average of 7.5%.
- Control of delivery: You control delivery of the gift card via email, text or app. You can also bulk send gift cards to any number of people.
- Tracking, data, and management: Insights on delivery, usage, and recipient behavior.
- Customize branding: You control the branding and messaging associated with the gift card.
- RESTful API: Automate gift card sending with ease through your own system. Giftbit handles the purchasing, activation, and delivery.
2. FiveStars
FiveStars is a software for reward programs that utilizes text, email, and mobile app marketing tools to help you acquire new customers at a rate that is twice as often. It also includes a Customer Touchscreen, provided for free, which enables easy customer sign-ups, as well as comprehensive reports on your customers’ spending habits.
AutoPilot and Unlimited Promotions allow you to effortlessly provide customers the appropriate reward at the appropriate moment, ensuring that your brand remains at the forefront of their thoughts. AutoPilot utilizes the emails and birthdays submitted during the registration process to execute five series of automated marketing campaigns using messaging, offers, and timing linked to event triggers.
3. LoyalZoo
LoyalZoo is a software system for loyalty programs that is simple to use. It assists independent businesses in quickly establishing and implementing an in-store loyalty program.
The LoyalZoo app acknowledges that members with points cards spend more and are important to businesses. This is because these members usually spend a higher amount during each visit compared to non-card members. Therefore, LoyalZoo’s main focus is to offer a customizable digital interface for punch card programs.
LoyalZoo gives you complete control by adjusting to your business. You have the option to enroll customers using their phone number or email address through your POS system. Afterwards, points or stamps are delivered to customers via text or email, so they are not required to download an app if they choose not to. However, the app is still accessible for customers who prefer to utilize it.
Some advantages of this loyalty program software:
- Supports multiple locations: if you have a chain, your customers can earn points across all stores.
- Free organic marketing: when a customer signs up for a LoyalZoo program using Facebook, their check-ins appear in their friend’s Facebook feed.
- Your branded loyalty card: design your digital loyalty card with your logo and coloring.
- Works for all purchase types: Customers can earn points on both physical and digital purchases.
4. Revetize
Revitize is an ideal choice for small businesses operating locally, as it offers a comprehensive solution for managing online reviews, promotions, referrals, and loyalty programs. It conveniently brings together all these aspects in one location and facilitates their delivery through various mediums such as email, text messages, and handwritten letters.
With various communication, lead generation and reputation management tools, business owners can leverage happy customers and acquire more referrals, reviews and repeat business.
This platform enables store managers to engage with customers by using touchpoint automation and personalized messages. It also provides a convenient way to manage all customers by offering features such as filtering, classifying, and segmenting them into specific groups for targeted marketing campaigns. Additionally, Revetize users can effortlessly execute promotional and loyalty campaigns and easily track their performance.
5. Preferred patron loyalty
Preferred Patron Loyalty is a software program for customer loyalty and gift card programs that is suitable for enterprises of any size. It is particularly useful for small businesses looking to establish reward programs. The platform enables business owners to establish business rules that prioritize customer loyalty by gathering relevant customer data, including demographics, purchase patterns, and customer communications.
With Preferred Patron, you have the capability to provide customers with dynamic content in real-time, according to loyalty rules and customer data, either on a scheduled basis or upon request. Additionally, you can present customers with a range of incentive-based programs, including coupons, referrals, appreciation, and cashback. This software is available in four editions: Bronze, Silver, Gold, and Platinum.
