Loyalty is always changing. As technology becomes less expensive and more available, we are going to take you through some of the most popular loyalty solutions in the market. We cover 7 of our top chosen loyalty program technologies and take you through what each one entails. Feel free to read our other blogs on each specific program covered below.
1.Points loyaty Program
This is one of the most popular loyalty solutions in the market. The customer is given a card or fob at the point of sale. Their card is swiped, and the transactional data is captured. The customer must register their card online to avail of any rewards.
This solution allows for full integration with all channels including social media. The customer can receive a personalised communication based on their transactional data such as purchase history and behavior.
Most platforms will also allow for tiered and member types. The customer can receive more tailored rewards, which results in more engagement and higher redemptions.
This loyalty program technology can provide lots of reports including Points issuance, list of transactions, birthday report, loyalty member report, top customer report, top location, top store and demographic.
2. Card Linking and Tokenization
Card linking or tokenization eliminates the need to identify, swipe or scan to collect and redeem loyalty points. This is a great addition to loyalty program technology.
Customer links a payment card to the loyalty programme. Each purchase made with the linked card is acknowledged by the loyalty engine, and points are awarded.
There is no need to present an app, loyalty ID or any other form of member ID at the checkout.
As part of the sign-up, the user provides his/her payment card details, and the user account is set up.
A full suite of reports can be accessed such as dormant customers, targeting specific demographic and specific data around events.
3. A Coalition app loyalty programme
This is the Deliveroo or Just -eat of loyalty. Customer downloads an app which houses 100’s or 1000’s retailer loyalty programmes.
Similar to our last example, the customer can link the card payment to the app. They swipe the app at the point of sale and enjoy earning points and rewards. They can redeem these points in any participating retailer in the app.
For Retailers, they can identify and understand individual spending habits while customers get to join and participate in lots of loyalty programmes with great ease.
In fact, customers don’t even have to show their mobile phone. By linking one or more of their payment cards or a mobile wallet to the app, and when they pay, the points will be automatically added to the relevant loyalty scheme.
Again, a full suite of reports is available to each participating retailer on their members including transactional data, average spend, geographical location and many, more
4. Blockchain Will Transform Customer Loyalty Programme
One of the new loyalty program trends is Blockchain. This is the technology behind bitcoin and offers some great opportunities for loyalty.
Blockchain enables a ledger of transactions to be shared across a network of participants. When a new digital transaction occurs (for example, a loyalty point is issued, redeemed, or exchanged), a unique algorithm-generated token is created and assigned to that transaction.
For consumers juggling an array of loyalty programs, blockchain could provide instant redemption and exchange for multiple loyalty point currencies on a single platform. With only one “wallet” for points, consumers would not have to hunt for each program’s options, limitations, and redemption rules.
Adopting blockchain would enable companies to rapidly add and maintain loyalty partnerships without adding complexity to their programs.
Furthermore, Blockchain technology has the potential to streamline administration, reduce costs, and improve the customer experience for loyalty rewards programs.
Gamification, the use of game mechanics in a non-game context to drive engagement, is becoming standard practice in marketing and loyalty campaigns.
27% of Millennials reported that they would stay in a loyalty program because it had a competitive game or social aspects, such as badges, leaderboards or communities, according to Colloquy.
Gamification means adding game-like incentives – or ‘game mechanics’ – to a marketing campaign to motivate more frequent play, deeper engagement and quantifiable changes in customer behavior that impacts the bottom line for the business.
Gamification can be a powerful tool when used effectively in loyalty programs.
6. Universal POS Systems
At the heart of most loyalty programs is the ability to capture customer transactional data. In the past, loyalty providers were required to integrate with existing epos.
This type of integration is often expensive and lengthy with endless fixes for POS software upgrades and can create all kinds of integration issues.
There is a host of technologies and companies that are now providing solutions to solve this problem – either by integrating directly into POS solutions ahead of time, or circumventing the integration work altogether (e.g., by integrating into the bar code scanner, by leveraging receipt-based scanning, by integrating with the credit card vendor).
This technology can be installed in seconds on nearly any POS without POS software integration.
This technology can provide tools for real-time interaction with the POS transaction as it happens: pop-up interactive prompts to guide operators; apply personalized discounts automatically as products are added; or trigger real-time dialogues with mobile apps.
This technology can work across a fragmented POS estates.
7. Receipt Recognition
This is another way to avoid expensive and timely epos integration. Here the simple customer registers for the loyalty programme and uploads a receipt of their purchase.
Optical Character Recognition or OCR Technology can read this receipt, identify the times on the receipt including all information such as store, products, cost of products.
OCR is a technology converts different types of documents, such as scanned paper documents, PDF files or images captured by a digital camera into editable and searchable data.
This data capturing works much the same way as a card or fob. A rewards engine will apply the points based on the transactional data from the receipt.
A similar suite of reports are available, and the communication platform can communicate with members based on their transactional and other behaviors.
If you require any further information on any of these loyalty technologies, please contact firstname.lastname@example.org.