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Best Customer Loyalty Software for Your Business

Finding the best Customer Loyalty Management Software for your business is now faster and easier! Compare prices, reviews, features, and get free consultation to find the perfect software.

What is Customer Loyalty Management Software?

Customer loyalty software is a structured tool that helps to provide incentives that ensure customer retention and repetition.

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What is Customer Loyalty Program Software?

Customer loyalty solutions are software consisting of a set of functions to help you retain your existing customers and secure many more. The software helps in the management of customers by letting you find out who is spending how much and on what products. The customer loyalty management system solutions ensure that no potential shopper is left ignored by your online store. Thus, it is an integrated system for managing people to make the most out of your business.

How Customer Loyalty Software Enhances Customer Experience?

  1. Customer loyalty management system solutions aim at increasing sales, retaining buyers, ensuring excellent customer experience, and gaining loyal consumers at the same time.

  2. Secondly, it is about managing your customers and analyzing the shopping behavior of your customers. This analysis allows you to manage your 'influential' customers effectively by offering them timely rewards and discounts.

  3. The best web-based loyalty program software helps in the planning of discounts in a way that is profitable for the company as well as the customers. For example, regular visitors can be entertained with additional discounts, etc. to make them shop again.

  4. The software helps in planning, developing, and executing the customer loyalty program for small businesses. The free and open-source customer loyalty software also helps in developing rules of the program, the rewards, and communication of the same.

  5. The customer loyalty program app for small businesses takes care of the overall management of a company's customers by helping the Admin plan and execute better customer experience.

Advantages of Customer Loyalty Management Software

  1. The customer loyalty software solutions help in making the visitor to the E-commerce website to stay for a long time and turn the visitor into a potential customer. The software tracks the potential customers searching for similar products on your website and makes them visit your website by providing incentives such as making the first buy a free one or by giving a considerable discount to the first time buyer etc.

  2. The repeated customers are the ones who bring profits to your business, and these customers are taken care of by the software. The software treats the best customers of your website with huge discounts and incentives, which encourages them to buy more products and bring more customers to your site. Besides, it takes care of wishing loyal customers on birthdays, anniversaries, etc. to make them feel special.

  3. While you may be busy taking care of the business, the customer loyalty software helps in tracking customers' visiting and buying activities and sends them follow-up Emails about the products that they were interested in and the discounts on the products they were interested in and persuades them to buy the products. It also follows up with the visitor or customer about their experiences and opinions on the website. These surveys help you to improve the business by rectifying the mistakes specified by the customers and visitors.

  4. The software sends a detailed report of the new customers and the number of repeated customers brought by the software, surveys, etc. through Emails.

  5. Some customers who stop coming to the website are brought back to your website by providing the incentives, discounts, etc. which is a big deal to any business.

Cons of Customer Loyalty Program Software

  1. While it is suitable for any business to get improved, the amount being spent on rewards, discounts, and incentives may be much more than the profits earned, which can potentially take the business down into losses.

  2. The emails and the tracking done by the customer loyalty software may annoy the customers and visitors if it is done frequently.

  3. The software can prove highly efficient for one's business but may not prove to be suitable for your website, which makes the amount spent on buying the software a waste.

What are the Various Types of Customer Loyalty Programs?

A loyal customer fan base is an asset for any organization as repeat customers spend more and tell their friends and family members about their positive experiences. Since it costs business organizations 5-25 times more to acquire more customers than retain previous ones, most firms nowadays focus a lot on developing innovative techniques to retain old clients. The shift towards a data-driven market and novel customer-centric strategies has led to a considerable increase in the level and standard of loyalty programs adopting customer loyalty software tools and platforms to gain a competitive advantage in the market.

Every business organization needs to follow loyalty programs that suit their target base and keeps their repeat clients happy. There are various types of different loyalty programs, and it is essential to make the correct choice.

Some highly popular loyalty programs include the following:

1. Points Loyalty Programs

This is one of the most common loyalty programs that is adopted by companies, and it helps to increase the overall revenue by keeping customers retained in the long run. In this loyalty management system, customers earn points for certain behaviors such as repeat purchases and the number of store visits. Customers can redeem the points against rewards, gifts, discounts, and investments, which keeps them regularly coming to the store. This loyalty program is best suited to businesses that have frequent customers who need to purchase at regular intervals. Points loyalty programs are easy for customers to understand and avoid price discounting, thus increasing the volume of customers at a rapid pace.

2. Tier System

Tiered loyalty programs are a more advanced version of the points loyalty programs, and they entice customers to make repeat purchases to get upgraded to the next tiers. The points system is an excellent way to make customers increase the overall value amount of their investment, as they wish to avail of the exclusivity and advantages of higher tiers. This type of loyalty program targets high-value customers, and it works very well as customers are less likely to leave or abandon your store once they have reached a higher tier level. It is the ideal loyalty program for high-priced businesses and keeps customers wanting to move up to the next tier, thus increasing the value of purchases. Any good customer loyalty software can help you set up this program.

3. Non-Monetary Programs

In recent times, many brands have started resorting to attractive non-monetary rewards that help to retain customers and clients. In this type of loyalty management system, companies offer regular non-monetary bonuses to customers who make a particular purchase. The reward may suit the lifestyle and preference of the customer, thereby pushes them to visit the store more frequently. Many organizations give popular non-monetary rewards such as a substantial discount at a spa, cinema, or hotel, which customers can utilize within a specific time frame, thereby keeping them hooked on to a brand.

4. Loyalty Card Programs 

This is a widely used type of customer loyalty system where an incentive plan is based on both consumer demographics and purchase transaction details. Loyalty cards programs work exceptionally well because they ensure that a card is made for a customer that can be swiped at the POS terminal every time they make a purchase. It ensures that loyal customers are rewarded with coupons, discounts, offers, and services that non-participating members are not entitled to. Loyalty cards are a revolutionary tool, and they attract a majority of customers and boost up bottom-line profits by increasing the store sales to the highest levels possible. You can manage these loyalty cards with the help of customer loyalty management software.

5. Gift Card Loyalty Programs

Another popular loyalty platform adopted by many organizations is gift cards, which ensure that a customer will have to come again for a repeat purchase at your store. Since gift cards carry the brand name, they are a great way to magnify the positive image of your store and enhance its business presence. Adding gift card options to customer loyalty software makes sure that customers have the opportunity to endorse the reputation of your store, and send their family members or friends to make purchases through gift cards. There is no doubt that gift cards are a valuable loyalty tool to expedite customer acquisition and encourage brand advocacy of any organization.

6. Gamification

This is a new phenomenon and works by adding a game to your loyalty program that becomes a compelling customer engagement strategy. The games are generally smooth, interactive, and keep the client fully involved to generate maximum interest. Offering rewards at every step and level of the game make sure that customers become loyal followers and shoppers. It is an entertaining medium that works because the prizes are aligned to target audiences, and keeps customers positively retained to organizations.

There are tons of different loyalty schemes that keep prized clients attracted to organizations, and companies need to choose one that gives maximum brand visibility and customer satisfaction. After all, implementing these loyalty programs using customer loyalty software are sure shot ways to increase customer ratings and numbers.

How do Customers Loyalty Programs Work?

Organizations need to capitalize on customer loyalty, as it helps them secure a large and robust target audience. All companies in the market aspire for customer loyalty as it ensures that their customers will keep purchasing from them, and take different measures to keep customers hooked on to their organization. A customer loyalty program software is a specific system that encourages customers to remain invested with an organization by boosting certain behaviours such as in-store visits or the volume/amount of purchases.

Nowadays, the market is flooded with several sophisticated and advanced customer loyalty software. They make life easier for managers by reducing administrative work, automating tasks, and building up operational efficiency.

customer loyalty program works

This is How Modern Customer Loyalty Programs Work for Business Firms:

  1. Customer loyalty program software for small business keep a systematic and updated record of loyal customers who give a company good repetitive activity through regular shopping transactions. This enables brands to curate and personalize the shopping experience by treating customers right so that they keep visiting the store.

  2. Loyalty programs work very well in the current digital age as they help in brand management as satisfied customers tell their positive experiences to friends and families, ultimately leading to a considerable increase in the client base.

  3. Customer management solutions such as web-based loyalty program software keep all the updated and real-time details of customers such as past purchases and store visits; thus, reducing the paperwork of managers and enabling them to concentrate on more vital tasks such as strategic goal planning.

  4. Customer loyalty software automatically generates reports and logs for managers, which enables them to get a complete visual picture of repeat customers just at a glance, thereby increasing the quality of managerial decisions. Customer data analytics helps to offer better products and services, along with keeping track of high-value clients.

  5. Customer loyalty programs work better for organizations if they choose a particular method that is best suited to their specific business model. It helps them generate maximum business revenue by securing repeat clients and attracting new ones at the same time.

  6. Customer loyalty platforms are user-friendly and require no training or substantial initial investment. They lead to a high level of automation and eliminate routine tasks, thus saving vast amounts of time, money, and efforts.

Customer loyalty programs are more prevalent today than in previous decades and have been adopted by companies in all sectors across the globe. Technology has been a game-changer in the market and led to the creation of modern customer loyalty software that helps managers to retain, attract, and engage customers at a rapid pace.

Higher leadership and managers need to choose the correct platforms so that they can gain a competitive edge over rivals and build a vast target audience. Loyalty card systems are a groundbreaking solution that facilitates companies to maintain client profiles and provide them better services for their repeat patronage. It's a win-win situation for both – organizations to benefit from increased purchases and a more extensive customer base. In contrast, customers remain delighted as they are rewarded for their repeat purchase, thus keeping them satisfied.

Points to Consider While Buying Customer Loyalty Software Solutions

The basics of the business, such as maintaining the quality of the products, delivering the products on time, replying to the queries and requests of the customers, are essential and should never be neglected. The customer loyalty solutions will not be of much help if the website quality and the quality of the images are reduced. So, it is better to first take care of all the essentials of the eCommerce website before going for customer loyalty software solutions, which may help to improve your online business.

  1. When buying the customer loyalty software platform, the reviews about the software should be checked. The percentage of successes gained by E-commerce websites similar to your website should be taken into consideration before buying the best online loyalty program software. This increases the chance of success.

  2. The rewards, incentives, and discounts provided by the software should be calculated carefully and should be checked, whether it is feasible for your business.

  3. Any website or an E-commerce site will take some time to get into the customers, and you have to wait for a while to see success. It depends on the choice of the website owner to wait patiently for some time before buying the customer loyalty program software for small businesses or to purchase software as soon as the website is started.

Loyalty or CRM Software- Is There a Need for Both?

Well, it all starts with Customer Engagement

With the opening of more and more stores and brands globally, customer engagement is no more the same game that it used to be; it has become more interactive. Today, customer engagement is all about elevating the customer experience and making it go from "Ouch" to "Wow." Together with identifying customer buying habits, tools, and use of social media, it is a different ball game altogether. In the pursuit of identifying the customer needs more intuitively, which one is better – Loyalty program or CRM software? Here are both of them clearly defined:

Customer Relationship Management

Customer Relationship Management or CRM, as it is commonly called, collects, and analyses customer buying-related data. This data helps an organization to reach out to a broad customer base to entice more customers.

Loyalty program

A loyalty program involves establishing a customer rewards program in the form of cashback points, vouchers, coupons, or any other virtual currency. Unlike the CRM, it is all about focusing on a single customer and ensuring a long association of the customer with the brand.

CRM vs. Loyalty Program


As mentioned above, the difference between CRM and loyalty programs is the perspective of utility and focus areas. However, CRM software often lacks the intent to reach out more effectively to "a customer." The communication is usually focused toward a wider audience; thus, it is all about sending an automated message about the brand (via email or text message or Whatsapp message per the latest trend).

The communication through CRM software, therefore, is more impersonal as it carries a generic message to the customers. The loyalty program, on the contrary, does the exact opposite. It is based on the psychological need for a customer to feel important and significant. Hence, customers receive tailor-made rewards in their inbox in exchange for sharing their buying-related data. Take, for instance, a discount code for a birthday or anniversary month of a customer.

A Loyalty CRM software lets a customer gather rewards points before they can redeem them. This cultivates an urge to collect more and more points and hence boosts the purchasing trend. A robust customer loyalty management software also lets you build a seamless way to set up and track points promotion. This essentially means that points automatically get accrued when a customer signs up, redeems points during a holiday season, or takes a survey, etc. Such software enables the customer to use your website or app more and get rewarded.

With Loyalty CRM software, it is easier to give the customers a purpose to keep visiting your business – by upgrading their buyer statuses and rewarding them for the same. But what if the customer is looking for a reward that's not available from your end? It's simple; you integrate your customer loyalty management software with other vendors or businesses for customers to redeem their points through you.

Can You Get The Benefits Of Both?

If you are a smaller business that is just starting out and short of funds, then you can work around the CRM to get the work done, but an advisable option is to integrate loyalty program features into the existing CRM software. Also, the chances are that your rivals may have adopted both the programs, so how do you get an edge over others? Simple, go in for a CRM tool loaded with loyalty management software features. It will not only be intuitive but is a tailor-made solution just for your business needs!

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Frequently Asked Questions (FAQs)

    • Customer Loyalty Software Enhances customer retention
    • Drives more traffic to your website or store
    • Provides valuable insights to the customers
    • Makes you a strong competitor
    • Increases consumer spending
  • Customer loyalty program software helps you to increase your sales and collect information on your customers to get a better understanding of their needs; thus, helping you increase customer retention eventually.
  • Nowadays, loyalty cars have been outdated. Customer loyalty software helps the customers to look at the offers based on their needs and make the purchase online accordingly.
  • Most of the POS software companies are starting to see the loyalty program as one of the most efficient ways of increasing customer acquisition and retention. So, yes, its complaint with POS.

  • Loyalty program software usually provides an enterprise-grade secure architecture that keeps 24x7 surveillance and allows access to the designated personnel only.

Customer Loyalty Management software in following cities

Kiran BajpaiBy Kiran Bajpai | Last Updated: October 29, 2020

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