How To Choose Loyalty Program Management Software for Your Business
The global market for customer loyalty program management software market size is poised to rise from $11.7 billion in 2023 to $41.2 billion in 2032, at a CAGR of 15.2%. The key drivers are the proliferation of smartphones, the growing need to embrace a user-centric approach, and the increasing expansion of the e-commerce market.
At Surf, we have extensive experience in building enterprise loyalty program management software. For example, our team created a loyalty app for a large retail company that currently has over 10 million monthly active users. We also developed a mobile app for an online pet shop with an integrated rewards program that boosted the client’s conversion rates from 5% to 15% within two weeks of launch.
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Check out our case studiesIn this article, we will help you choose between turnkey and custom loyalty management software (LMS) and explore the main features that can be found in LMS systems for enterprises.
Loyalty program management software: key benefits
Thanks to LMS, organizations improve consumer engagement and increase sales. Studies reveal that 56% of consumers say they are more likely to make a purchase again from a company that has personalized offers. With dedicated customer loyalty management software, you will be able to easily run, manage, and track the performance of your loyalty program.
As part of their programs, brands usually offer bonus points, discounts, coupons, promo codes, and cashback, motivating shoppers to buy more and boosting their satisfaction. To maximize profit, you should consider offering all of these via a mobile loyalty app.
Top features of a loyalty program management system
As major corporations provide their own digital retail loyalty schemes to attract new shoppers, increase retention, and generate revenues, LMS integration is especially vital to small and medium-sized companies for keeping a competitive edge. The functionality of loyalty program management software may differ depending on your business goals but there are some key features that you should implement.
Turnkey vs custom loyalty program software
Choosing between market-ready and custom loyalty and rewards program management software is one of the most important decisions an enterprise needs to make. Both software options have their pros and cons, so let’s try to find out which program is a better fit for your goals. Take a look at the images below.
The infographics briefly explain the advantages and disadvantages of both paths a company faces when it has to pick software to manage loyalty programs. Let’s explore this in more detail.
How to choose between custom and turnkey software
When choosing between a turnkey and custom loyalty program management system, it is important to set the primary objectives, determine the requirements, estimate budget, and take into account existing resources, for instance, in-house technical expertise with specific technologies and software.
Hire a trusted IT partner to create a custom loyalty management system
Learn more about SurfLoyalty program software for small businesses
As a rule, small companies look for ways to quickly receive a cost-effective software solution with a basic set of features. In order to address these challenges, they should turn to the vendor of a market-ready platform. There are numerous off-the-shelf applications for loyalty program management, for instance, Marsello, Antavo, FiveStars, and Perkville.
When searching for turnkey LMS, take into account aspects like prices, reviews, ratings, and functionality. For example, while turnkey solutions come with built-in analytics tools, their depth of insights is often limited. Also, you should consider whether or not the supplier offers technical support, update management, and maintenance.
Software for large-scale companies
Medium-sized enterprises and large organizations, in turn, generally pursue to meet business-specific needs while delivering the best user experience. What’s more, their management seeks for scalability to extend the product and flexibility to make changes at any time. A high degree of customization and a unique user interface (UI) / experience (UX) are also crucial.
In this case, tailor-made loyalty management software will be the best option. With custom LMS, brands can envision and implement any solution or functionality whilst managing prices, upgrades, and feature rollback. Also, custom solutions can be made to seamlessly integrate with the brand’s existing digital infrastructure and ecosystem for truly in-depth analytics and optimized workflow. To hire a trusted IT partner, you should check out their portfolio and client testimonials.
Wrapping it up
While evaluating loyalty program management software, consider your specific needs and long-term goals. This way you can effectively boost audience engagement, minimize churn, increase the sales volume, and gain a competitive advantage.
If you do not have specific requirements for a feature set and are unlikely to scale the product in the near future, you should pick a turnkey system. They are easily implemented with a set of pre-configured features, which makes them ideal for small businesses.
In case you envision rich functionality and plan to adapt the rewards program management platform to internal processes, tailor-made software is your choice. While requiring more investment upfront and a certain amount of maintenance expenses, this type of solution provides customization and scalability that suits any medium or large-sized company, no matter how complex its business operations are, or how ambitious are plans for expansion in the future.
