Factors to consider when choosing a loyalty software provider

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A customer loyalty program can do wonders for your business if implemented correctly. It helps you build strong relationships with your current customers and dramatically increases sales. Each Loyalty program software comes with different features and options, just like the companies that develop and provide them. When it comes to choosing a program for your brand or business, your goal should be choosing one that has a user-friendly backend, can easily integrate with your marketing platform, and beneficial enough to reach your specific business goals.

In this article, we have put together the vital factors to consider when choosing a loyalty software provider to help you make sure you spend financial resources on the right loyalty software solution.

The right program types

As mentioned above, loyalty program software comes in many different flavors; you should choose one as per the needs and requirements of your business. Single-Tier and Multi-Tier reward programs are the two most commonly used types of loyalty programs on the market.

Single-Tier reward programs come with one level of rewards, which means there is one point-bracket across the program for each member. The bracket includes a contact list, and the members included in that list can get exclusive bonus points and discount offers. The points add to a customer's point total, which are redeemable for an incentive or reward. A multi-tier loyalty program differentiates between customers utilizing hierarchical tiers like silver, gold, platinum, and assigns members to different tiers based on past spending behavior. The more members spend, the higher they climb in the hierarchial tires. Members receive varying levels of tangible rewards and intangible benefits in different tiers to keep them engaged with your loyalty program. You should choose the right program type as per your business needs to ensure maximum engagement and customer retention.

Automated tools to grow the customer list

A healthy loyalty program helps you create a good marketing list of loyal customers' for your business, allowing you to ramp up sales during slow times or planned dates. When you have a list of loyal customers on hand, you can create and market special offers in front of them that they cannot ignore. For that reason, be sure to check what automated tools in your loyalty program software are available to help grow your customer lists effectively.

Actions the member can do to promote your program for bonus points

Increased sales transactions among existing customers are not the only benefit loyalty programs offer. Loyalty programs can help you improve brand awareness and acquire new customers by helping you present your products or offers in front of a wider audience. Loyalty rewards are used by smart businesses and brands to encourage existing customers to promote your products or services within their social circles for additional points and rewards. For that reason, you should check a loyalty program software for actions the members can do to promote your program or business for bonus points. Referring to a friend, leaving online reviews, social sharing, taking surveys, and completing a profile with the required details are some of the actions that you can ask your customers to do to earn bonus points. Also, check a program's social media integration capabilities to ensure that they support those social media sites your customers are using.

Automated Marketing Tools

Automated marketing capabilities are one of the most important factors to consider when choosing a loyalty program software. Such programs can smartly send marketing materials to your customers based on their behaviors and spending habits. They can also market your products or services based on predefined marketing rules, campaigns, and dynamic offers. The best loyalty programs automatically broadcast marketing campaigns before, on, or after decided dates. In this way, you can reach your marketing goals without spending extra efforts on creating time-intensive marketing campaigns and filtering member data. Automated marketing feature brings peace of mind for all types of businesses.

Check the Security Strength & Data Protection

Loyalty programs generate a massive amount of data and information about customers. That is the reason, security strength & data protection are vital importance when choosing a loyalty program software. Make sure all the customer data is safe and protected as early in the decision-making process as possible. Make sure the software provider is using technical security measures, firewalls, and advanced encryption technologies. Hard to guess passwords and antivirus software help prevent unauthorized entities from gaining access to your loyalty software member data.