The best customer loyalty programs

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George Liddy

George Liddy on Tibco

An easy way to connect different sources of data to create dynamic info and visuals with a high data integrity. The end product looks appealing to all...
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Jonatan Leandoer on Yotpo

Yotpo has been really helpful in increasing the number of reviews on our rapidly expanding website. Because we have so many SKUs, getting reviews for ...

Regardless of the chosen mechanics, one of the main problems for retail chains is questioning the participants of loyalty programs. Not all retail chains collect customer data. And if they do, not all companies process and store the data. But it is the collection and analysis of data about customers that allows the company to influence their loyalty: to offer promotions and personalized coupons which are interesting for each customer.

Deciding what your loyalty program will be is not enough. It is equally important to decide on its infrastructure, in particular - the way to store and process data about your customers.

You may use CRM-systems for that purpose - special software which stores the information about your clients: it forms their personal profiles and collects their purchase history. Based on the CRM data, the company builds further communication with customers, for example, generates personalized offers based on gender, age and history of purchases. And modern technology allows you to choose a convenient channel of communication and make it more effective and targeted. 

Customer loyalty is something that all companies should strive for simply by virtue of their existence: the goal of building a commercial company is not only to make a one-time profit on the first purchase, but also to attract and retain customers who buy your products further time after time. "Caring and loyalty is the most powerful marketing strategy a business can have" A little statistics to back up this statement:


  • Regular customers spend more than others. Even compared to themselves, a loyal customer spends 10 times more than they spent on their first purchase.

  • It costs a business 5 to 25 times more to acquire a new customer than it does to retain an old one (Harward Business Review).

  • In the US, 40% of revenue from online purchases comes from repeat customers, who make up only 8% of website visitors.

  • A 5% increase in customer retention increases business profits by 25-95%.

  • loyal customers tell their family and friends about their positive shopping experiences and interactions with the brand.

A guide to choosing the right customer loyalty program


Today's consumers are constantly bombarded with advertising, promotions and information. In an age when everyone is trying to get attention, we urge businesses to think more strategically.


Loyalty programs are an effective way to differentiate a company from the competition and attract customers. When implemented correctly, these initiatives can add lifetime value to customers and lead to more conversions.


The technology behind customer loyalty programs is really where the magic happens. In this post, we look at the factors to consider when choosing a customer loyalty program platform, as well as recommendations based on our experience with customers.


Choosing a customer loyalty program


With several options to choose from, how do you know which loyalty software provider is best for your company? We recommend that you first consider your company's budget and customization needs when deciding which loyalty platform you want to use.




As with any project, it's best to identify available funds early in the process. Ask yourself the following questions:


What is my budget?


These questions will help you narrow down the loyalty platform options that will work for your company. Remember that scale and scope are factors in pricing, so we recommend that you don't overthink the options that will work best for your company when doing your research.




Not all platforms are created equal. When researching loyalty programs, be clear about the level of customization your business needs to achieve your goals.


Customization can range from point systems to tiered programs and multiple formats in between. As you go through the evaluation process, ask platform providers specific questions to ensure that their functionality works best for you and your customers.


In general, loyalty programs are designed to enhance the customer experience by establishing meaningful relationships. 


Points Program


A points program is the most common way to structure a customer loyalty program. Reward your customers in 3 general steps: join, participate and share. Encourage membership by offering rewards for simple things like joining and making purchases.


Increase customer engagement by offering points for things like writing reviews or celebrating birthdays. Finally, encourage customers to share your brand by rewarding social promotions and referrals.

Customers are more likely to write that review or share that social post if there's some incentive behind it, like a discount. And they also benefit your business by increasing your social media presence and benefiting your SEO.



Customers will use their points to earn things like percentage discounts, free shipping, dollar discounts or free products. Options such as expiration dates, rate limits and earning terms help customers make timely purchases from your store.


VIP Program


VIP programs promise future bonuses, which is what makes them work. Increase customer engagement by offering additional rewards and status the longer a customer stays loyal to your brand.

Customize your VIP program by setting the type of milestone, such as income or points. You can even set the length of the milestone based on a 365-day period or the length of a customer's lifetime with your company.

The biggest difference between VIP and points programs is that VIP programs focus on connecting with your best customers, while points programs benefit all customers equally.


Referral Program


Referral programs offer points and rewards for customers who refer and share your brand. In this scenario, you can encourage referral customers to join your program. gives you control over the platforms from which your customers can send referrals. Most importantly, they make it easy for your potential customers to claim and use their rewards. 




Regardless of which loyalty program platform or software you choose for your business, it's important that your loyalty program works for your company and, more importantly, for your customer.

Building this relationship will improve customer perception, resulting in increased customer and brand loyalty - so have fun!

If you have any questions about customer loyalty program software, contact us through the form below. Our team will be in touch!