Best Customer Loyalty Software

Customer loyalty software is a program that rewards present customers and ensures their retention. The customer loyalty system helps improve the engagement of the customers who continuously shop or use your services to earn reward points, which can be later converted to discounts for future purchases. After thorough research and analysis, we have listed some of the best customer loyalty program software you can use to manage your loyal customers and plan successful customer loyalty strategies for the future. The software helps you calculate their reward points, help them redeem them, track their purchase activities, and provide in-depth analytical reports.

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Buyer’s Guide

Introduction to Buyer’s Guide For Customer Loyalty Software

Keeping the customers engaged with more connecting points can enable businesses to have longer journeys with them. It is also more challenging for companies to successively maintain the customer retention needs, constantly tap the untapped potentials, and generate value for the business. For those still struggling to thrive, now is the time to change your approach. The customer loyalty program or reward programs pose as a ripe opportunity for both consumers and companies.

Loyalty programs have evolved over the years. While they once existed simply to reward customers for purchasing goods at a store, this has been now carried out to retain customers for a longer haul. It has changed in many ways- now; it is more about the target-specific loyalty program. Business organizations collect all the information about the customers’ preferences first and then design the loyalty programs. It has not just changed in its strategies but also in its approach. Customer loyalty software is the latest game-changer for business enterprises planning to implement a successful customer loyalty program. It allows them to manage various types of loyalty programs and align them with the organization’s goal. It helps them to save a lot of money and time that they usually invest in acquiring customers through traditional marketing techniques. They can even monitor the customer loyalty program to ensure it is behaving as per the set goals. Business enterprises can reap many such advantages through Customer Loyalty Software; all they have to do is to choose the right customer loyalty software.

This buyer guide on customer loyalty software is intended to help business organizations to understand the customer loyalty software from various dimensions. The guide discusses the important topics such as price, features, benefits, future trends, etc., of the customer loyalty software. All this information could prove vital for business owners while finalizing the best customer loyalty software for their organization.

Why Does Customer Loyalty Program Matters For Business?

In one of the studies conducted by the Washington University in St. Louis the researchers have concluded that the Loyalty Program plays a critical role in retaining customers.

It is natural that most organizations focus on their existing customers for new sales. However, loyal customers not only spend more but also act as brand advocates. Hence, the majority of the organizations are considering customer loyalty programs as their top priority. As per one of the survey report, businesses worldwide spend around 75 billion U.S dollars on customer loyalty management. It clearly indicates the value of a customer loyalty program in the success of business enterprises. A well-designed loyalty program can attract the most valuable customers and helps businesses save costs on acquiring less valuable customers. Loyal customers tend to develop strong bonds with the business enterprise offering them gifts and discounts. A loyalty program is a great way to express gratitude to loyal customers, and over the long run, it could bring more benefits to the organization. Loyal customers are like a magnet that draws new customers with their recommendations.

What Are the Elements that Drive Customer’s Loyalty?

Personalized customer service
Emotional bonding with brands
Customer satisfaction
Convenience to use loyalty program
Brand reputation

What Are the Common Challenges that Business Enterprises Face With the Customer Loyalty Program?

Rewarding loyalty sufficiently: Customer loyalty programs help business enterprises retain customers, but they can only give positive results when executed properly. A loyalty program can range from offering a discount on products to redeeming gift vouchers. If business owners do not know which loyalty program can result in maximum customer retention, they could lose time and money. It is a big challenge for business owners to identify the right royalty program and target them accordingly.
Measuring loyalty across all sales channels: Organization must identify the sales channels that show higher or lower response rates for the loyalty programs. It helps organizations to know whether their objectives are met and customers are satisfied. Based on these data, they can improve their loyalty program. However, the legacy system does not give a clear picture of the loyalty program's success and lacks in monitoring the loyalty program across all channels.
Lacks customer management: Business owners need to track their loyal customers' buying history and habits for an effective loyalty program. It gives them a better understanding of their liking and based on which they can design the loyalty program. However, organizations that do not have a proper customer management system cannot track their customers, resulting in an ineffective customer loyalty program.
Budget allocation: A customer loyalty program built without any set goals or targets often leads to financial loss. Business owners cannot estimate the exact amount of budget required for executing a customer loyalty program.
Rigid reward structure: Another challenge with the customer loyalty program is the rigid reward structure. In desperation to engage the customers, sometimes business owners design a customer loyalty program that is complex and irrelevant. Complex and rigid reward structure not only disappoints the customers but also spoils the brand reputation.

What Is Customer Loyalty Software?

Customer loyalty software is a tool that assists business owners to reward their loyal customers and increase the customer retention rate. They can use customer loyalty software to set up various loyalty programs such as discount offers, cashback, gift vouchers, etc. It helps them to track the rewards histories, set up a loyalty program, build a centralized repository, etc.

Various loyalty programs that users can exercise through top loyalty software include free shipping, discounts on products, earn free points for every purchase, referral benefits, points that never expire, benefits based on tier levels, access to a limited product, etc.

How Customer Loyalty Software Can Aid Businesses In Retaining Customers?

A customer loyalty program is one of the most familiar strategies for retaining customers. However, the customer loyalty program should be planned and executed properly; otherwise, it can backfire. It provides a centralized system to create and manage various customer loyalty programs. It means the business owners can engage customers in a myriad of ways and enhance the customer retention rate. In addition to that, it helps to check the performance of the loyalty programs, keep track of customer data, and give insights about customer’s behavior. These insights help business owners to adjust loyalty programs to engage customers in a better way. It can even help to attract new customers by offering huge discounts on their first purchase. Digital media has further helped to reach customers through various channels and enables them to take benefits of the customer loyalty program. If customers are part of a referral program, the software tracks the referrals automatically and redeems the surprise gifts. It instills a positive image about the brand, and customers are encouraged to refer service to other customers. Some software supports multiple languages, making it easy for business owners to design loyalty programs in the local language. It helps local customers to take advantage of the loyalty program, and there are more chances that customers retain the services.

Customer loyalty software overall helps businesses to design loyalty programs specific to their customer base and marketing objectives. It provides the platform for business growth, and to understand how it does; users should tap on the benefits of customer loyalty software.

What Are the Benefits of Customer Loyalty Software?

Increased market share: The secret to successful business lies in delivering a good customer experience and retaining the customers. Top loyalty software enables users to extend their market share by attracting customers through loyalty programs. It can accelerate the business marketing strategies and make the customer feel valued. It reduces the marketing efforts and does not irritate customers with the forced marketing tactics.
Increase customer response: Business enterprises invest in various marketing strategies, and after years of hard work, they can gain customer’s attention. By selecting the top customer loyalty software, the business enterprises can push various customer retention programs and increase the customer’s response rate. Instead of creating a general marketing campaign, they can create offers or loyalty programs that are targeted to specific customer’s interests.
Customer-centric: Most businesses put all their efforts to beat their competitors and less on their customer’s needs. It is less likely that by beating the competitors’ marketing strategy, the business owners can get an advantage over their customers. Instead, if they have the right customer loyalty software that can push loyalty programs based on customer requirements, then enterprises have more chances to win the customers and stay ahead in the game.
Create brand value: A valued customer not only can boost the revenue but also can increase the brand reputation. They share their experience among their friends, families, or community on the social media platform. It helps brands to make their presence more prominent in the market and create brand value. They can even reward such customers by sending gift vouchers or extra points for referring someone to the brand.
Long-term customer relationship: Most customers today appreciate the personalized experience, and top loyalty software can well assist business enterprises in delivering the personalized experience. By offering rewards and cashback, the customers can feel valued and show more confidence in the company’s product. It eventually helps them to strengthen customer-client relationships and build long-term companionship.
Data-driven approach: By using the best customer loyalty software solutions, users can gather all important data related to customer’s behavior. Based on the data, they can accurately estimate the customer’s needs and necessities. Users can use this data to develop various customer loyalty programs and increase the customer retention rate. They can have better ROI on their customer retention programs.
More room for experiment: Business enterprises can offer a diverse loyalty program to attract customers. It provides room for the organization to experiment with various loyalty programs and try new ways to drive customers. They can get more options such as discount cards, gift coupons, membership discounts, etc., to please their valuable customers.

Time-Saving Features of Customer Loyalty Software

Rewards and incentive engine
Paid membership program
Social and behavioral loyalty program
Receipt scanning
Support Omni-channel loyalty
Reporting and data analytics
Fraud prevention and security
Payment checkout
Automation
Integration

What Are The Factors to Consider While Purchasing Customer Loyalty Software?

Data analytics: Data analytics is an important element of customer loyalty software. To ensure that the customer loyalty program is meeting the business goals it is necessary to monitor the performance of the program. It is impossible to track the performance of loyalty programs without having the data analytics feature. It is recommended that users choose the customer loyalty software that supports the data analytics feature.
Third-party tool integration: Third-party tool integration is essential for a customer loyalty software. Business organizations can derive more advantage from the customer loyalty software if it integrates with other software such as POS. It can gather more data about customers, and it can release more exciting offers for the customers.
High-security measures: Software that deals directly with customer information always remains on the radar of hackers. It is necessary that the customer loyalty software implements high-security measures and a data-backup facility to secure the customer’s data.
Support mobile apps: Customer loyalty software that supports mobile apps can bring more value to the business in increasing their customer. It also gives flexibility to customers to avail the offers when and where required.
Support omni-channels: Organization presence on various social media platforms can gain customers more attention. By adopting an omni-channel strategy for a loyalty program, an enterprise can reach more customers in less time. It is recommended that the best customer loyalty software supports omni-channels.
Technical support: Top customer loyalty software should be capable of handling the end number of customers and push various loyalty programs. For its smooth functioning, it is necessary that there are no technical glitches and it has low downtime. The top customer loyalty software must have strong technical support to deliver a great customer experience.
Rewards customization: Flexibility to customize the rewards system expands the scope of customer engagement. The customer loyalty software that engages customers in a specific way can add more value.

How Secure Is Customer Loyalty Software?

Customer loyalty software is absolutely secure to use.

Customer loyalty program is popular among customers and businesses, but there is one more group that keeps a close watch on the customer loyalty program – hackers. Customer loyalty software holds sensitive information about the customers, and it can become an easy target for hackers. However, customer loyalty software follows robust security measures to eliminate security threats. Customer loyalty software that issues loyalty cards generally uses one-time passwords. They even implement permission-based access to stop unauthorized access. For data backup, they often have backup servers that ensure that there is no data leakage. Some software vendors also follow strict fraud measures such as e-mail anti-fraud options or double-opt-in verification to confirm the identity of the participant. All such security measures make it difficult for hackers to intrude on the information/data available on the dashboard of the customer loyalty software.

Latest Trends In Customer Loyalty Software

Third-party offerings: Technology has been helping businesses to understand their customers and their preferences better. This facility is proving very helpful in designing a target-based loyalty program. Businesses are now offering better deals to their customers through third-party offerings. In order to give the best experience to customers, businesses are working with other companies. The third-party offering is gradually becoming the trend in the customer loyalty program, and in the coming years, it is expected to grow rapidly.
Gamification: Gamified loyalty programs encourage customers to become part of the loyalty program in a fun way. Organizations use gamification such as prize wheels, quizzes, scratch cards, etc., to engage customers. Gamified loyalty programs are already implemented by businesses, and it is going to remain as one of the favorite ways to please customers.
Instant gratification: A loyalty program that triggers instant gratification can aid in enhancing customer retention. They can build a memorable relationship by rewarding them immediately after the purchase. Real-time offers can drive instant gratification, and in the future, business owners can focus more on offers and deals that can bring instant gratification.

What Is The Average Cost of Best Customer Loyalty Software?

The average cost of the best customer loyalty software could be anywhere from $15/month to $149/month. The software price could vary based on the features, deployment, numbers of campaigns, and member access. Some software vendors also offer free customer loyalty software but it comes with limited features.

Best customer loyalty software for startups and small businesses: Startups and small businesses who have limited numbers of customers, cannot afford to lose their customers. Customer loyalty software is the best way to engage and retain customers; however, they also have to see that the software meets their budget criteria. Loop Loyalty at a price of $18/month can be a good pick for the best customer loyalty software for small businesses and startups. The software provides digital stamp cards for customers to collect rewards or points. It allows them to send targeted messages straight into their smartphone, and it is easy to set up. The customer loyalty software envelops all the features that small businesses and startups require to engage their valuable customers. The software offers a free trial. SweepWidget at a price of 29/month is another exceptional customer loyalty software for small businesses and startups. Users can quickly enhance their footprint on social media as it supports almost all social media platforms. Besides that, it provides users with a wide spectrum of loyalty programs to engage their customers, which is usually difficult to get at this price. Other customer loyalty software for small businesses and startups include InsightJet, Loyverse, Loyera, etc. Some of these software vendors offer free customer loyalty software with limited features for startups and small businesses.

Best customer loyalty software for mid-size and large scale businesses: Mid and large-scale businesses require customer loyalty software that caters to a huge customer base, increases their customer retention rate, and saves their time for sales and marketing. Swiftic at a price of $57/month, is the best customer loyalty software for mid-size and large-scale businesses. The software gives detailed insights about the customer activity and based on which business owners can create marketing campaigns. Some additional features such as free web support, batch import functionality, and developer API are key attractions of the software. The software offers a free trial. If users are keen on setting up unlimited incentive campaigns and advanced marketing capabilities, then Preferred Patron at a price of $79/month is an ideal option. The software is scalable and also supports accessories such as kiosks, plastic cards, scanners, etc. Voucherify, Loyaltygator, Womply, etc, are few other options. For large-scale businesses, high-end loyalty software such as Vyper $149/month can be the right pick of customer loyalty software. Other tools that fall in the same slot include InviteReferrals and Pleasepoint.

Free and open source customer loyalty software: Free and open source customer loyalty software allows users to configure the software features for its better performance. Free and open source customer loyalty software does not bear any software development costs, and it can be freely distributed. These attributes of free and open source customer loyalty software make them a natural choice for startups and small businesses.

Why Refer to Goodfirms' List of Best Customer Loyalty Software?

Goodfirms is a top-class review and rating platform for IT solutions. It has been listing software solutions for various organizations and sectors. Goodfirms team follows a proven method to list the best software solution on the portal. This makes it easy for customers to filter software solutions that match their business requirements and save their valuable time. Customers can compare software solutions on parameters such as pricing, features, deployment, services, etc. Goodfirms team ensures that customers have access to the best software solution for their business.

Conclusion

In the last couple of decades, entrepreneurs are reinventing the business models that don’t just survive but grow exponentially. The key to this lies in delivering the best customer experience and retaining loyal customers. The old pattern for customer retention does not make sense in the modern marketplace, which is highly competitive and diverse. Customers are also becoming choosy about the products and customer service. Besides delivering quality products and services, business owners need to keep customers engaged with the exciting offers and deals. Customer loyalty software can be quite helpful in strategically planning and executing the customer loyalty program.

Customer loyalty software can help the organization to enhance its revenue and reduce its marketing efforts. They can involve customers through different tiers of a customer loyalty program and build a long-term partnership with their valued customers. If your business organization seeks to leverage the benefits of a customer loyalty program but is confused to choose one, then do not miss checking the list of best customer loyalty software prepared exclusively by the Goodfirms’ team.

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Best Customer Loyalty Software

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