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Customer Loyalty Management Software 2022: Ultimate Guide

Customer Loyalty is a set of programs designed to encourage loyal customer behavior. In particular, Loyalty Management focuses on promoting repeat purchases by the same customer, whether of the same product, or of allied products and services, or even of other products offered by the company. In practice, Loyalty Management involves the design and implementation of processes – both, internal to the business, and where the business interfaces with customers - that enable loyal customer behavior. Lately, rewarding customers for a desirable non-purchase activity such as signing up for newsletters, endorsing the brand on social media, attending brand events, etc. have also been brought under loyalty management’s purview.

Learn why Loyalty Programs are important for your business and how to choose the right software.

Updated By Cuspera

Last updated: Feb 10, 2022

Top E-Commerce Loyalty Management Software

The E-Commerce market segment at a generic level is characterized by a highly competitive environment with a large number of merchants, commoditized products, stressed margins. In such an environment, the primary goal for businesses who have an online presence is to retain their customers, increase repeat purchases from the customers, acquire new customers through referrals. Loyalty programs play a key role in achieving these goals. Businesses that have both offline and online presence like to provide a seamless experience to their customers with an omnichannel strategy. Loyalty programs should provide seamless integration with POS, payment systems and redemption mechanisms should be simple and easy to use.

High-end and niche businesses that have online presence want to provide more enriching and personalized experience for their customers. Loyalty programs for such businesses should be more customizable and personalized and integrate customer journey experience. In businesses where customers are not so price-sensitive, the reward program should be more tailored to suit such customers with rewards being more oriented towards experience creation.

Customer Loyalty Software for E-Commerce should provide seamless integration with popular E-Commerce platforms like Shopify, BigCommerce, Magento, WooCommerce to name a few. Easy-to-use mobile apps are critical requirements for implementing good loyalty programs.

A well-designed loyalty program plays a key role in retaining customers by building stickiness, acquiring new customers with lower cost, increasing customer share of wallet, and building brand loyalty.

We bring you a selection of such software for your consideration.

LoyaltyLion

Data-driven engagement and online loyalty platform for ecommerce

4.50

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LoyaltyLion Icon

LoyaltyLion

22.52
★★★★★
★★★★★
Data-driven engagement and online loyalty platform for ecommerce

LoyaltyLion is an ecommerce customer loyalty and engagement platform, powering growth and retention through data-driven loyalty programs. Its customer engagement platform helps small to large sized e-commerce businesses create custom loyalty programs. It allows merchants to manage customers, marketing campaigns, retention and spend rates, rewards, referrals, integrations, communication and more.

LoyaltyLion offers a host of features such as loyalty emails, on-site notifications/alerts, multi-device access, customizable branding, email incentives and a CSS theme editor. The platform includes a built-in dashboard that offers insights into customer activity, referral and retention analytics, loyalty program performance and real-time statistics. Additionally, it allows customers to send referrals via links or a standalone widget. LoyaltyLion’s points and rewards are designed to give customers a reason to return and spend at the user’s store.

Customers can earn points for any on-site activity, including purchases, leaving reviews or making referrals. LoyaltyLion allows customers to exchange points for rewards such as vouchers or gift cards. Users can also set custom rewards like free products or shipping. LoyaltyLion integrates with various e-commerce platforms including Shopify, Magento and BigCommerce.

Testimonials

Kimberli

Ecommerce Marketing Director

Pacifica Beauty

LoyaltyLion Icon
Highlights
Top Processes : Loyalty management,Engagement management,Engaging and following up
Top Features : Gamification,Rewards,Personalization

Vendor: Loyalty Lion

Company Size: 11-50

HQ Location: 28 Hatton Garden, London, England EC1N 8, GB

Financials: Private

AiTrillion

All-in-one marketing platform to grow Shopify Ecommerce Sales

4.00

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AiTrillion Icon

AiTrillion

20.00
★★★★★
★★★★★
All-in-one marketing platform to grow Shopify Ecommerce Sales

AiTrillion is an eCommerce marketing platform that provides leaders across the enterprise with the business insights, advice and tools required to achieve the goals and build the eCommerce store of tomorrow. It helps to increase customer lifetime value, improve consistency, and increase sales and revenue.

AiTrillion drives long term growth from engagement to customer retention, workflow automation, and actionable analytics all under one platform. It analyses USD transactions by AI Analytics, tracks visitors and remunerates customers for their store activities with a variety of loyalty reward programs.

Features of AiTrillion include automating marketing with workflows, tracking and evaluating email marketing statistics, reward the customers for their store engagement, turn the customer content into sales by collecting and leveraging reviews, ratings, and Q&A with AiTrillion Ai-powered solutions and many more.

AiTrillion helps to grow Shopify Ecommerce Sales. Increase the conversion rate by 87% with #1 AI-Powered, Integrated sales and marketing automated platform, All-in-One, Super App with 11+ modules | Get the total money’s worth with AiTrillion! Trusted by 1000s of Shopify Stores Globally. Up to 96% cost savings on recurring monthly bills and 25% off on yearly billing. 2022 Winter High Performer Award by G2. Momentum leader in Trending Personalization Software Category by G2 Grid Scoring Report in Personalization Software.

Testimonials



Portfashion

AiTrillion Icon
Highlights
Top Processes : Engagement management,Loyalty management,Engaging and following up
Top Features : Alerts: popups & Notifications,Personalization,Rewards

Vendor: AiTrillion

Company Size: 1-10

HQ Location: 2093 Philadelphia Pike #9505 Claymont, DE 19703

Annex Cloud

An Enterprise Customer Retention Solution that Accelerates Growth

4.19

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Annex Cloud Icon

Annex Cloud

20.96
★★★★★
★★★★★
An Enterprise Customer Retention Solution that Accelerates Growth

Annex Cloud is a customer marketing software which provides customer loyalty, referral marketing and user generated content software solutions to help brands and retailers engage with their customers one-to-one.

It provides a customer marketing solution which are delivered online, in-store and app-based functionality for companies to engage with their customers and motivate them to choose their brand.

Key features in Annex Cloud includes: Customer Loyalty Cloud, Referral Marketing cloud and User Generated Content Cloud. Customer loyalty cloud comprises of customer loyalty, online, omni-channel, and paid membership loyalty. Referral Marketing Cloud comprises 'refer a friend', influencer marketing, and contest. User Generated Content cloud includes user generated content, visual commerce, ratings and reviews and questions & answers, which are helpful to increase conversion and enhance customer insights

Testimonials

Jeff Johnston

Marketing Manager

Marine Depot

Annex Cloud Icon
Highlights
Top Processes : Loyalty management,Customer engagement,Automated Engagement
Top Features : Rewards,Dashboard,Gamification

Vendor: Annex Cloud

Company Size: 51-100

HQ Location: Playa Vista, Los Angeles

Financials: Private

Top B2B Loyalty Management Software

B2B Customer Loyalty Management ecosystem includes channel partners, resellers, distributors, agencies and end customers. The B2B ecosystem is also highly competitive and it is important for businesses to focus on engaging with their partner ecosystem, building strong relationships, building brand loyalty and stickiness and reward in a meaningful manner. Goal of B2B engagement is to ensure that customers are retained and promote referrals as well.

The reward management in the B2B environment differs very much from B2C and also varies for different users of the ecosystem. Resellers and distributors appreciate volume discount, prepaid debit cards, appreciation, incentivisation and benefits oriented rewards. It is common for businesses to incentivize their distributors and agents with luxury travels, gifts based on sales targets. End customers are better recognized with priority customer service, recognition, early preview of product offerings, ability to influence product roadmap.

Some of the resellers and distributors might prefer white label loyalty solutions to customize based on their own branding. B2B Loyalty Management Software should support such a capability. Loyalty Management Software can support a strong membership program with additional features like member mobile app, member web portal and with centralized management of membership program. This greatly improves engagement and experience.

Some enterprises might prefer to have partners to run the rewards programs and loyalty management should support integration to such an ecosystem with data exchange abilities. Coalition Loyalty Management can be another key requirement for many of the B2B businesses

We bring you a selection of such software for your consideration.

Zinrelo Loyalty Rewards Program

Loyalty Rewards Program to maximize customer engagement, retention and revenue

4.66

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Zinrelo Loyalty Rewards Program Icon

Zinrelo Loyalty Rewards Program

23.32
★★★★★
★★★★★
Loyalty Rewards Program to maximize customer engagement, retention and revenue

Zinrelo is a loyalty and customer engagement platform that provides 360 degree customer engagement. It is an omnichannel loyalty platform that supports desktop, mobile and physical stores. It supports multiple dimensions of loyalty including transactional, social, advocacy, engagement and behavioral loyalty. It helps to increase repeat purchase and grow revenue.

Zinrelo Loyalty Rewards Program offers simplicity and flexibility in management of reward tiers, rewards dashboard, members, rewards, promotions, etc. A dedicated customer success team is assigned to each account to walk through onboarding, creatives, integration, launch and testing.

Zinrelo features data analytics to help run a data-driven campaign. Data sciences teams analyze past purchase data to deliver a best suited rewards program depending on the business. The machine learning algorithms segment users into clusters and suggest rewards strategies to target different clusters. Campaign engines can be used to run promotions for each user segment. It allows to create rewards for different activities like sharing, reviews, follow on different social media platforms.

Testimonials



Tim Meyer

Account Manager

France & Son

Zinrelo Loyalty Rewards Program Icon
Highlights
Top Processes : Loyalty management,Engagement management,Engaging and following up
Top Features : Gamification,Rewards,Dashboard

Vendor: Zinrelo

Company Size: 11-50

HQ Location: San Jose, California

Financials: Seed

Comarch Loyalty Management

Create and manage personalized loyalty programs to build for improving customer engagement with audienc

4.00

Read Reviews
Comarch Loyalty Management Icon

Comarch Loyalty Management

20.00
★★★★★
★★★★★
Create and manage personalized loyalty programs to build for improving customer engagement with audienc

Comarch Loyalty Management is a cutting-edge solution that allows users to create and execute loyalty programs with ease. It supports both B2C and B2B operators. It helps to improve brand awareness, improve customer experience.

Comarch Loyalty Management utilizes Artificial Intelligence and Machine Learning mechanisms to help to identify individual patterns within your client’s shopping carts and provide offers that are perfectly in line with their preferences. It provides full customer data and analyzes sales statistics to make sure users are always up-to-date with the performance of loyalty programs.

Comarch Loyalty Management can manage and use customer data gathered from all touch-points, and identify the most valuable consumers to focus marketing activities. It maintains high levels of customer satisfaction, program participants can be easily engaged through the built-in marketing geo-located offers and promotion actions, such as lotteries, special auctions, coupons or benefits for rewarding the best customers.

Testimonials



JetBlue

Comarch Loyalty Management Icon
Highlights
Top Processes : Loyalty management,Engagement management,Customise loyalty program
Top Features : Gamification,Rewards,Personalization

Vendor: Comarch

HQ Location: al. Jana Paw?a II 39A,Kraków, PL

LoyaltyZen

Fully-customizable by automating B2B and B2C loyalty program management

4.00

Read Reviews
LoyaltyZen Icon

LoyaltyZen

20.00
★★★★★
★★★★★
Fully-customizable by automating B2B and B2C loyalty program management

LoyaltyZen is a white-label loyalty software for agencies and resellers. It helps to create the best possible loyalty program management tool. It helps to acquire customers and build brand awareness.

LoyaltyZen helps to create rules for points accrual, rewards catalog, and marketing campaigns which enables to save time on management tasks, concentrate on what's important and run an effective loyalty program.

Its features include points on members spending, purchasing targets for the customers, bonus points for participating in a time-limited deal, groups created based on points or spending and many more.

LoyaltyZen Icon
Highlights
Top Processes : Loyalty management,White labeling,Campaign management
Top Features : Rewards,Gamification,White label

Vendor: LoyaltyZen

Company Size: 1-10

HQ Location: 15-481 Bia?ystok, Ul. W?ska 15, Poland

What is Customer Loyalty Program

Customer Loyalty Management

Customer Loyalty! That holy grail of brand managers!

A loyal customer is a gift that keeps on giving. The cost of retaining existing customers is just a fraction of that of acquiring new ones. This is so well-known that it is now considered axiomatic. More importantly, a loyal customer generates consistent and high revenues at a low engagement cost, and thus, is of immense lifetime value to the company. In addition, loyal customers often take on an evangelical role for the company and endorse the brand and its products and services to others, often at no cost to the company.

Customer Loyalty is a set of programs designed to encourage loyal customer behavior. In particular, Loyalty Management focuses on promoting repeat purchases by the same customer, whether of the same product, or of allied products and services, or even of other products offered by the company. In practice, Loyalty Management involves the design and implementation of processes – both, internal to the business, and where the business interfaces with customers - that enable loyal customer behavior. Lately, rewarding customers for a desirable non-purchase activity such as signing up for newsletters, endorsing the brand on social media, attending brand events, etc. have also been brought under loyalty management’s purview.

Satisfaction is a rating. Loyalty is a brand.

S H

Shep Hyken

Customer Service Expert

Loyalty Management execution usually involves crediting buying customers with “points” or coupons that can be accumulated in some limited fashion to be exchanged for further purchases, or cash credits against further purchases, or, in some cases, providing opportunities for aspirational experiences. A typical loyalty program is likely to be one or more combinations of these, arranged as tiered rewards programs with the higher tiers reserved for the more valuable customers.

How do you create a Loyalty Program?

Points Based Loyalty Program

The points based systems are based on the paradigm that for the money that you spend you earn reward points and the points can be accumulated over a period of time. Businesses allow redemption of points against either cash back or purchase of goods or some kind of merchandise purchase. This type of reward system is popular with retail, grocery, credit card companies. In the airline industry, reward points or miles can be exchanged for seat upgrades. Some businesses offer redemption points for donation and charity purposes.

Tiered Loyalty Program

In this system, the reward program is based on levels of loyalty. The more customers spend or more frequently they spend, the higher the levels of reward. The benefits, offers and discounts vary depending on the loyalty level. This type of reward program is popular with fashion, beauty, airline, hotel and credit card companies. The benefits here can include free upgrades, privileged checkin and lounge access facilities for airline customers. VIP passes in entertainment programs, early preview in case of the fashion industry are some of the ways benefits are offered. In the case of B2B customers it could be higher discounts, upgrade in service options, extended warranty, to name a few.

Paid Loyalty Program

In this type of loyalty program, customers pay a nominal fee upfront to be an exclusive member and such members get recurring discounts on the goods and services or VIP benefits like free and/or priority shipping, early privileged preview before major sales. This is common with retail, grocery, beauty and salon services, and food delivery apps. Amazon Prime is a good example of such a loyalty program.

Referral vs Loyalty vs Customer Advocacy

Both referral and loyalty programs focus on customer centric marketing. Both the programs focus on rewarding consumer behavior that is beneficial to business. However, there are important differences in the approach.

Referral programs focus on encouraging existing customers to bring in new customers. Referral programs help in acquiring new customers at low cost. Loyalty programs encourage consumer behavior to make more frequent purchases, increase the share of wallet and focus on customer retention and stickiness. Loyalty programs are ideal for businesses where there is high level of competition, low margins, high degree of customer flight. The value of rewards in referral is much higher compared to loyalty rewards.

Customer advocacy programs focus on using a small set of loyal and passionate customers to act as brand ambassadors to advocate the product to a relatively large group of people typically using social channels. This is facilitated by action such as testimonials, reviews, sharing content and social posts. Referral programs reward customers to advocate the product or service to a select group of people that typically includes people in their personal and professional network. This is done through personalized 1-1 connection. The scale of advocacy marketing is much larger using a few sets of customers whereas referral programs try to get a larger number of customers to advocate for their brand which results in fewer leads per customer.

What is Loyalty Management Software?

What is Loyalty Management Software?

The success of a Customer Loyalty Management program depends on how well each audience segment is targeted with the loyalty program most appropriate to it, and then, the excellence in executing each program. Loyalty Management Software decidedly elevates the quality of both these aspects.

In most industries, significant parts of the purchase process have moved to the digital space, so loyalty programs also need to inhabit the same space and competently deliver the right incentives to the right customer at the right moment. Customer Loyalty Management Software enables this significantly.

Omnichannel software solutions straddle multiple online platforms and devices as well as the offline world seamlessly. Armed with the ability to process vast purchase behavior data, they assist marketers with predictive models for customer behavior and loyalty program recommendations. Moreover, Loyalty Management Software provides the execution framework for the roll-out and comprehensive management of the selected loyalty programs.

Loyalty Management is very closely related to other business processes like Referral Marketing, CRM, Lead Management, Customer Journey and Experience. So it is important to look at all of these together to drive a holistic approach to digital transformation.

Are Loyalty Programs worth it?

According to the MarketsandMarkets report, the forecast for the loyalty management market growth is from USD 6.8 billion in 2019 to USD 10.9 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 10.1% during the forecast period. The major factors driving the market are increasing adoption of omnichannel and multichannel programs, Emergence of advanced technologies, and Growing need for competitive differentiation. While incentivized selling recognizably similar to modern loyalty programs have existed for centuries (over 300 years by some accounts), dedicated software is what makes modern Loyalty Management highly effective. Specific benefits of using Loyalty Management Software include these:

Enable Customer-Centric Marketing

Organizations adopting customer-centric marketing will necessarily have loyalty management as a key part of this strategy. Existing customers are 50% more likely to try a new product of the company as well as spend 31% more than new customers. Loyalty management software makes it easier for businesses to centralize and process customer data to drive meaningful loyalty marketing programs that foster customer loyalty. Customer-centric marketing which includes loyalty management and building customer communities can drive up to 5X increase in sales. This also helps in customer retention and stickiness to the brand. Loyalty programs derived out of customer-centric marketing drive increased share of customer wallet.

Increase in Revenue

The software can make loyalty program recommendations including well-differentiated interventions targeted at specific customers or customer segments. Recommended interventions can comprise selling opportunities including upselling or cross-selling, or non-sale interactions such as prompting the customer for particular brand engagement actions.

Loyal customers, they don't just come back, they don't simply recommend you, they insist that their friends do business with you.

C R B

Chip R Bell

Customer Loyalty Expert

Improved Customer Journey Mapping

With Loyalty Management Software, loyalty interventions are far more targeted as they can now be planned on the basis of actual customer journeys. The software’s capabilities ensure that individual customer journeys can be mapped in detail and classified, future journeys can be forecast, and reliable predictions can be made on customers’ lifetime value to the company.

I think the acquisition of consumers might be on the verge of being mapped. The battlefield is going to be retention and lifetime value.

G V

Gary Vaynerchuk

Entrepreneur, Speaker

Increase in Customer Lifetime Value

Are Loyalty Programs worth it?

The insights from available data and the recommendations generated by Loyalty Management Software make planning loyalty programs significantly easier, quicker, and more comprehensive. With programs better targeted by categories of loyal customers, loyalty programs are better adopted by their target audience, which in turn boosts customers’ lifetime value to the organization considerably.

Enable Scale of Operation

Loyalty program execution and management receive a major shot in the arm with the use of Loyalty Management Software. The software enables depth and scale to a degree that is very difficult to achieve with manual operation. The spurt in capability enabled by the Software actually implies not just that prior campaign objectives are achieved more easily, but even that the objectives themselves can be set far beyond the limitations of manually executed programs.

Industries that Use Loyalty Management Software

As a customer behavior influencer, Loyalty Management is industry-agnostic, and so is the use of Loyalty Management Software. Loyalty programs are commonly rolled out by consumer product companies, retailers, financial services firms, technology service providers, travel and hospitality providers - pretty much every B2C industry conceivable. Popular B2C industries that adopt loyalty management include retail, CPG, FMCG, and travel, fashion, jewelry, cosmetics, F&B, beauty, gaming

As a marketing tactic, loyalty marketing is far more visible in the B2C space, but it is also widely used by B2B organizations to nurture relationships with buying centers within client companies, build up the seller company’s brand profile in the client organization, and to stack up the costs of switching to competitors by raising the perceived benefits of staying with the seller.

Some of the major industries where loyalty management programs are heavily deployed include - BFSI, aviation, automotive, media and entertainment, and hospitality.

Loyalty Management Software is employed to craft and execute loyalty programs in a variety of sales environments - offline brick-and-mortar, brand-owned e-commerce portals, e-commerce aggregators - delivered through various online and offline channels.

Users of Loyalty Management Software

Loyalty Management is ideally a multi-functional exercise, involving Marketing, Sales, and Operations departments. Program conception and design, execution, and post-execution follow-up require the active collaboration of these departments. Moreover, loyalty management is most effective if treated as an ongoing evolving program fed by feedback loops from previous instances rather than as a one-off, which too is best-served by a multi-functional approach. Users of the software, therefore, would be spread across these functions.

Why Loyalty Software is Important?

The software enables nuanced planning and execution of loyalty programs while avoiding or minimizing potential business problems arising from manually running loyalty programs.

Underutilization of Customer Data

Copious customer data that gets collected routinely and is under-utilized, gets its deliverance with Loyalty Management Software. Manual spreadsheet-based analysis can use only a small portion of the customer data that gets collected routinely but remains under-utilized. Loyalty Management Software, on the other hand, is purpose-built to crunch all your available customer behavior data and produce usable insights.

Inconsistent Customer Engagement

Loyalty and reward programs that are not automated result in inconsistent customer engagement and communication. Loyalty Management Software enables rapid scaling up for program execution. For example, the software assists in drawing up communication schedules detailing what is to be communicated to which customer category at what point in time. Communication dispatch too can be automated, so that customers receive due communication without the need for active human intervention.

Lack of Differentiation

Customer Loyalty Management Software offers myriad options to launch a variety of reward programs for your customers. These are tailored to specific industries as well. A variety of choices can be provided to customers - points to dollar conversion, discount at favorite outlets ( which the client can partner with), discount for a product upgrade, limited edition product access, increased warranty or service to name a few. The variety of choices can act as great motivators for customer retention.

Barriers to increase User Generated Content

Loyalty management Software effectively removes barriers to increase user-generated content. The key barrier is to make the customer provide reviews, ratings, or testimonials and it is not about unduly influencing the rating. Even the most satisfied customers need to be nudged to provide reviews and ratings. With rewards and incentives, it is much easier to generate user reviews, ratings, and testimonials.

Prevention of Fraud

Loyalty Management Software can protect your organization from fraudulent misuse of your loyalty programs. Pattern recognition and predictive analytics can detect and flag suspicious activity instantly, so they can be examined for genuineness.

The software can be your key ally in the detection of fraud and misuse of your loyalty programs. With the ability to intelligently parse large amounts of data and pick out anomalies or suspicious patterns, your Loyalty Management Software could function as a proactive warning system.

Key Features of Loyalty Management Software

Omnichannel Tracking

A core function supported by Loyalty Management Software is the ability to track individual customer purchase behavior across online and offline channels, making it possible to put together a unified transaction history for each customer, which in turn makes highly personalized program targeting possible.

Loyalty Profiling

Customer behavior data can be used to profile types of customer loyalty and journey stages. Profiling tools in Loyalty Management Software do just that, which makes for more customer-relevant programs and messaging.

Reward Program Management

Loyalty Management Software provides a platform to execute and manage various types of loyalty programs - points-based, tier-based, cashback, VIP groups. Most such software also provides support for rules-based combinations of these, enabling focused targeting of different categories of loyal customers.

Gamification Options

Customer interest can be created and held by gamifying loyalty programs. Loyalty Management Software often supports various game options, usually, spin-the-wheel, sweepstakes, faster points rate, treasure hunts, etc.

User-Generated Content

Content originating from the user carries the double advantage of higher credibility and better customer engagement. User-generated content may include reviews, ratings, testimonials. Many Loyalty Management Software support methods that make it easier to prompt and enable users to produce content on social media, e.g., hashtag contests.

POS Integration

Enabling the brand to engage the customer during her visits to physical stores while retaining seamless integration with currently running loyalty programs is an interesting feature. Kiosks are used to engage the customer with a gamified store experience of the current loyalty programs and to redeem points/ coupons/ vouchers/ offers at checkout.

Messaging Support

Insight-led, targeted, and timed emails, messaging on SMS, MMS, and various social media platforms, all can be actioned through the messaging support features. An allied feature is the ability provided to the customer to link her social media profiles with her loyalty account with ease and get rewarded for it.

Referral Marketing

Loyalty Management Software often also supports referral marketing programs, which are closely associated with loyalty programs, enabling the customer to experience a seamless flow between the two.

Key Features of Loyalty Management Software

Analytics and Reporting

Beyond program management, Loyalty Management Software has the ability to continuously process customer behavior data and dynamically update and report customer profile insights, and to track, analyze, and report on specific loyalty programs.

Wallet

Most Loyalty Management Software offers the wallet functionality that supports various currencies alongside points, coupons, vouchers, and so on, for handling rewards smoothly.

Data Security

Loyalty Management involves dealing with a large amount of customer data collected from various sources and also keeping track of all of the data related to loyalty points, currencies, redemption records, etc. The software should ensure that data is securely stored and managed so there is no breach of security. This is key to maintaining customer trust.

Artificial Intelligence in Loyalty Management Software

Companies routinely capture vast amounts of customer behavior data and rarely succeed in actioning it in any significantly meaningful way. Harnessing this data to deliver an enhanced customer experience would be a natural area of contribution for Artificial Intelligence, and it is.

Loyalty Management Software increasingly leverages AI for predictive analysis of customer behavior - dynamically classifying customer behavior types, predicting customer journeys and churn, pre-empting fraudulent or otherwise undesirable behavior, and so on.

AI-generated insights also provide inputs into configuring audience-optimized loyalty programs. The insights become available in double quick time, far less time than is possible with conventional analytics. As a dynamic learning system, AI-platforms become more effective with time in accurate and nuanced analysis, and thus, in distilling progressively advanced insights.

7 Factors to consider to buy Loyalty Management Software

Industry

The needs of the consumers and customers of different industry segments vary widely. The reward mechanism to deal with aviation customers can vary compared to how loyalty programs have to be implemented for the automotive industry. Loyalty Management software should be tailored for industry needs and industry-specific nuances have to be analyzed before selecting the software.

B2B or B2C

Loyalty program implementation varies widely for B2B and B2C customers. In the B2C environment, loyalty programs are mainly targeted for individual consumers or at the most pool comprising family and friends, however, in the B2B environment the target audience are the businesses, and hence reward systems have to be suitably tailored. The choice of loyalty management software should be made after assessing whether it can support B2B loyalty requirements and whether reward systems are geared towards this segment. In B2C, the software should provide enough customization to tailor to different segments of consumers.

Cloud or On-premise

Loyalty Management Software is available both in the SaaS model as well as an on-premise deployment. The choice largely depends on the company’s needs and policies. While using the SaaS model, it is important to assess the data security and privacy policies. Also it is important for businesses to own the customer data and software should support it.

Geographical or Region Considerations

The loyalty program design greatly varies across regions and geographies. It is important to know whether the software supports regional considerations. It could be the reward structure, currencies, integrations needed, localization, offline-online model to name a few.

Point Product or Suite

Loyalty Management is a business process that is executed in conjunction with other business processes like lead management, CRM, referral marketing, customer journey mapping, customer experience management. There are several vendors like IBM, Microsoft, Capillary that offer integrated stack which is ideal for enterprise loyalty management requirements. On the other hand, there are several vendors who only focus on loyalty management along with referral marketing. Depending on your organization’s ecosystem and needs, you can choose either integrated stack or point loyalty solution.

Capabilities

Assessment of capabilities provided by software is a key consideration for selecting the right-fit software. If your loyalty programs need social media coverage, it is important to consider social media support as part of omnichannel support. Similarly ability to create dynamic segments, personalized recommendations for individual experiences, customized reward programs, self-service portals play a key role.

Integrations

Loyalty Management is never a standalone business process. It is closely related to other business activities like CRM, lead management, marketing automation, referral marketing to name a few. If you are not opting for a suite where some of these capabilities will be included, it is important to ensure that the Loyalty Management Software offers good integration capabilities via API. Loyalty Management needs to access content management systems to extract customer data and hence out of the box integrations to popular CMS like WordPress is desirable.

Challenges in Adopting Loyalty Management Software

Ability to Identify/Prevent Fraud

The biggest challenge currently facing businesses that commission Loyalty Management Software into their marketing management effort is to find the fine balance between ‘frictionless’ customer experience and adequate security measures at a reasonable cost to limit fraud. Many internal marketing teams are already struggling to keep up with new technology, multiple channels, and demanding customers; and loyalty fraud becomes too complex an issue that brands and Loyalty Management Software teams alike are still trying to figure out comprehensively and end entirely. Monetary loss and reputation loss can be substantial for any brand.

Automation

The true potential of a loyalty program, and the Software that supports it, can be realized in an overall marketing environment that has kept up with technology-driven methods. Deploying Loyalty Management Software without commensurate automation in other parts of marketing has very little potential to deliver significant results. There are multiple ways a customer can reach a brand. If loyalty programs are not able to integrate all channels to provide a cohesive and seamless experience from one touchpoint to another, that takes out much of the wind from its sails.

Speed of Change

Loyalty program managers particularly cite technology and the pace of change as a hurdle they face. They also say that consumers’ expectations change very quickly, and keeping up with appropriate responses keeps them on their toes. If the software platform does not actively help this situation, obsolescence could be quick.

Talent

Across North American and Asian markets, loyalty program managers reported difficulty finding personnel with the right loyalty experience and technical expertise.

Improving ROI with Loyalty Management Software

Increasing customer retention by just 5% boosts profits by 25% to 95%.

B & C

Bain & Co

Advisory Firm

Clearly, there is much at stake in running effective customer loyalty programs.

Effectiveness of the loyalty program can be measured by point redemption, repeat customer rate, purchase frequency, average order value, points expiration, time between purchases, and RFM analysis. Many of the software provide means to measure these metrics and analyzing the metrics over a period of time helps businesses to fine tune their loyalty programs.

To reiterate as discussed in the earlier sections, Loyalty Management Software can analyze your customers’ behavior, categorize them on several parameters, identify those with the potential for the highest lifetime value, recommend appropriate loyalty programs, and enable comprehensive program management, all of this very rapidly.

Software can mean the difference between low-impact cookie-cutter loyalty programs and high-focus, targeted ones, the latter delivering profit increases near or at the 95% quoted above.

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Customer Loyalty Software Program for businesses

4.83

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Preferred Patron

4.83
★★★★★
★★★★★
Customer Loyalty Software Program for businesses

Preferred Patron is a customer loyalty management solution designed for companies of all sizes that offers incentive promotions, visitor loyalty management, multi-channel marketing and gift card management functionalities within a suite. Preferred Patron currently helps businesses across the retail, automotive, healthcare, gaming, hospitality, cosmetics, salon and spa, health and fitness, golf resort and country club, and café and pub industries to increase their customer engagement and retention.

Highlights
Top Business Usecases : Loyalty management,Customise loyalty program,Helpdesk management
Top Features : Rewards,Gamification,Personalization
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Vendor: Preferred market Solutions

Company Size: 11-50

HQ Location: 3 Canale Dr, Egg Harbor Township, New Jersey 08234, US

Financials: NA

Tapmango

Customer Loyalty and Online Ordering Platform

4.71

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Tapmango

4.71
★★★★★
★★★★★
Customer Loyalty and Online Ordering Platform

TapMango is a customer loyalty and marketing platform that allows any retail store or restaurant to create and manage their own customer loyalty program, all branded to their business. The solution empowers business in the apparel, automotive, beauty, nutrition, healthcare, and entertainment industries to build branded reward programs.

Highlights
Top Business Usecases : Loyalty management,Engagement management,Engaging and following up
Top Features : Gamification,Rewards,Feedback surveys
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Vendor: Tapmango

Founded: 2009

Company Size: 11-50

HQ Location: 5775 Yonge St, Suite 1801 Toronto, Ontario M2M 4J1 Canada

Financials: Private

Zinrelo Loyalty Rewards Program

Loyalty Rewards Program to maximize customer engagement, retention and revenue

4.66

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Zinrelo Loyalty Rewards Program

4.66
★★★★★
★★★★★
Loyalty Rewards Program to maximize customer engagement, retention and revenue

Zinrelo is a loyalty and customer engagement platform that provides 360 degree customer engagement. It is an omnichannel loyalty platform that supports desktop, mobile and physical stores. It supports multiple dimensions of loyalty including transactional, social, advocacy, engagement and behavioral loyalty. It helps to increase repeat purchase and grow revenue.

Highlights
Top Business Usecases : Loyalty management,Engagement management,Engaging and following up
Top Features : Gamification,Rewards,Dashboard
Zinrelo Loyalty Rewards Program Icon

Vendor: Zinrelo

Company Size: 11-50

HQ Location: San Jose, California

Financials: Seed

Social Spiral

Loyalty Platform for the customers to join, and easy to engage the customers.

4.62

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Social Spiral

4.62
★★★★★
★★★★★
Loyalty Platform for the customers to join, and easy to engage the customers.

Social Spiral is a loyalty platform that makes it simple for customers to join, and easy to engage customers. It is used by small-to-medium businesses, media and agencies. It helps to engage customers from traditional media and encourage customers to share, opt-in (SMS/email) and give feedback.

Highlights
Top Business Usecases : Loyalty management,Promotion management,Customise loyalty program
Top Features : Rewards,Gamification
Social Spiral Icon

Vendor: Social Spiral

Company Size: 2-10

HQ Location: 220 20th Street West, Saskatoon, SK S7M 0W9, CA

Pet Food Frequent Buyer Program

Loyalty programs to help retailers manage rewards and marketing

4.57

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Pet Food Frequent Buyer Program

4.57
★★★★★
★★★★★
Loyalty programs to help retailers manage rewards and marketing

Pet Food Frequent Buyer Program provides loyalty program solutions to pet store outlets. Virtual frequent buyer cards and customized points program are available. It is designed for small to medium sized businesses, and used by national chains. Their programs will work for any business wanting to manage a customer loyalty program. It helps retailers, vendors and customers.

Highlights
Top Business Usecases : Loyalty management,Sales incentive management,Customise loyalty program
Top Features : Rewards,Gamification
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Vendor: Pet Food Frequent Buyer Program

Company Size: NA

HQ Location: Vancouver, BC Canada

Fivestars

FiveStars Customer Acquisition and Customer Loyalty Program

4.57

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Fivestars

4.57
★★★★★
★★★★★
FiveStars Customer Acquisition and Customer Loyalty Program

Fivestars is a Marketing platform for local businesses. It is a loyalty system that enables businesses to attract and retain customers and convert potential clients by providing them with rewards for their brand loyalty.

Highlights
Top Business Usecases : Loyalty management,Promotion management,Engagement management
Top Features : Rewards,Gamification,Alerts: popups & Notifications
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Vendor: Fivestars

Founded: 2011

Company Size: 251-500

Financials: Series C

Mass Mobile Apps

Custom Loyalty Mobile App Building Platform for Retail

4.55

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Mass Mobile Apps

4.55
★★★★★
★★★★★
Custom Loyalty Mobile App Building Platform for Retail

Mass Mobile Apps is a Custom Loyalty mobile app building platform for eCommerce and Retail businesses, Real Estate, Dentistry and others.

Highlights
Top Business Usecases : Engagement management,Loyalty management,Engaging and following up
Top Features : Alerts: popups & Notifications,Rewards,Gamification
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Vendor: Mass Mobile Apps

Company Size: 11-50

HQ Location: 106 Tycos Drive, Suite 3, Toronto, ON M6B 1V9, CA

Financials: Private

Sparkage

Digital loyalty platform to connect with customers, & encourage repeat visits

4.55

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Sparkage

4.55
★★★★★
★★★★★
Digital loyalty platform to connect with customers, & encourage repeat visits

Sparkage is a digital loyalty platform for small businesses that aims at increasing customer connect and repeat visits enabling business growth and simplified marketing.

Highlights
Top Business Usecases : Loyalty management,Engagement management,Engaging and following up
Top Features : Rewards,Gamification,Alerts: popups & Notifications
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Vendor: Sparkage

Company Size: 1-10

HQ Location: 3137 S. Bown Way, 220, Boise, ID 83706, US

Kangaroo Rewards

Loyalty and Marketing Platform that motivates to increase sales and drive traffic

4.51

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Kangaroo Rewards

4.51
★★★★★
★★★★★
Loyalty and Marketing Platform that motivates to increase sales and drive traffic

Kangaroo is a loyalty marketing platform designed to serve businesses of all types and sizes, within any industry. The solution offers a collection of features that help organizations engage, retain, and reward customers through custom loyalty programs, automated marketing, digital gift cards, rewards, and more.

Highlights
Top Business Usecases : Loyalty management,Engagement management,Engaging and following up
Top Features : Gamification,Rewards,Personalization
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Vendor: Kangaroo Rewards

Founded: 2009

Company Size: 11-50

HQ Location: 465 St-Jean Street, Suite 400, Montreal, H2Y 2R6

Financials: NA

LoyaltyLion

Data-driven engagement and online loyalty platform for ecommerce

4.50

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LoyaltyLion

4.50
★★★★★
★★★★★
Data-driven engagement and online loyalty platform for ecommerce

LoyaltyLion is an ecommerce customer loyalty and engagement platform, powering growth and retention through data-driven loyalty programs. Its customer engagement platform helps small to large sized e-commerce businesses create custom loyalty programs. It allows merchants to manage customers, marketing campaigns, retention and spend rates, rewards, referrals, integrations, communication and more.

Highlights
Top Business Usecases : Loyalty management,Engagement management,Engaging and following up
Top Features : Gamification,Rewards,Personalization
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Vendor: Loyalty Lion

Company Size: 11-50

HQ Location: 28 Hatton Garden, London, England EC1N 8, GB

Financials: Private

TangoTab

Socially-conscious marketplace to give you the easiest way to feed people in need in your city

4.50

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TangoTab

4.50
★★★★★
★★★★★
Socially-conscious marketplace to give you the easiest way to feed people in need in your city

TangoTab is a technology enabled platform that is making it possible for people to support efforts to end hunger in their local community by solving a problem of filling surplus capacity within the restaurant industry.

Highlights
Top Business Usecases : Collaboration,Social media management,Lead qualification
Top Features : Personalization
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Vendor: TangoTab

Company Size: 1-10

HQ Location: Dallas, Texas, US

Financials: Series A

Oappso Loyalty

Digital Loyalty Stamp Cards to maximize customer loyalty

4.50

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Oappso Loyalty

4.50
★★★★★
★★★★★
Digital Loyalty Stamp Cards to maximize customer loyalty

Oappso Loyalty is a digital, stamp-based loyalty system which enables small businesses to design loyalty cards for customers online and via iOS and Android devices. It is designed to help users increase sales, generate customer engagement and save on costs by motivating customers to return and offering a paper-free solution.

Highlights
Top Business Usecases : Loyalty management,Customise loyalty program,Engagement management
Top Features : Alerts: popups & Notifications,Rewards,Gamification
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Vendor: Oappso Loyalty

Company Size: NA

HQ Location: London, US

WaveToGet

Loyalty and Rewards Program to help reach your business goals.

4.50

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WaveToGet

4.50
★★★★★
★★★★★
Loyalty and Rewards Program to help reach your business goals.

WaveToGet offers businesses with a physical smart card-based reward program. It is a loyalty card solution for small businesses including auto dealerships, restaurants, manufacturing, retail stores and IT. WaveToGet users can implement various types of loyalty programs to suit their needs and track program performance.

Highlights
Top Business Usecases : Loyalty management,Customise loyalty program,Campaign management
Top Features : Rewards,Gamification,Personalization
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Vendor: InfoEmpire

Company Size: NA

HQ Location: Ashmore, Gold Coast, Queensland 4214, AU

ShoutOUT

Loyalty management platform to drive profitable customer actions

4.50

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ShoutOUT

4.50
★★★★★
★★★★★
Loyalty management platform to drive profitable customer actions

ShoutOUT Reward is a loyalty management platform that motivates actions at every stage of the customer journey with points and rewards. It helps to improve internal communications and build brand awareness.

Highlights
Top Business Usecases : Engagement management,Loyalty management,Engaging and following up
Top Features : Personalization,Gamification,Rewards
ShoutOUT Icon

Vendor: ShoutOUT Labs

Company Size: NA

HQ Location: No 02, 6th Lane, Colombo, Western Province 00300, LK

Vauchar

Reward management system to drive more traffic and better user engagements

4.50

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Vauchar

4.50
★★★★★
★★★★★
Reward management system to drive more traffic and better user engagements

Vauchar allows the organisations and developers to easily integrate and use vouchers, discounts and offers service without much complexity. It helps in increasing engagement from customers by rewarding them with great discounts and benefits. It is a cloud-based voucher management infrastructure with API to create, distribute, redeem and track vouchers.

Highlights
Top Business Usecases : Discount management,Communication management,Engagement management
Top Features : Dashboard,Rewards,Gamification
Vauchar Icon

Vendor: Vauchar

Company Size: 11-50

HQ Location: JeevanBeema Nagara, Bangalore, Karnataka 560075, IN

Thanx Software

CRM and digital engagement platform to maximize digital revenue and engage top customers

4.49

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Thanx Software

4.49
★★★★★
★★★★★
CRM and digital engagement platform to maximize digital revenue and engage top customers

Thanx Software is a CRM and digital engagement platform for restaurants and retailers looking to maximize digital revenue and engage top customers. Thanx is a fully automated customer happiness platform for brick-and-mortar businesses. It helps brands keep their customers delighted and loyal for life.

Highlights
Top Business Usecases : Engagement management,Engaging and following up,Loyalty management
Top Features : Personalization,Rewards,Gamification
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Vendor: Thanx

Company Size: 11-50

HQ Location: San Francisco, CA

Financials: Series B

Goody platform

Loyalty Program & Marketing Automation to create and retain loyal customers

4.47

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Goody platform

4.47
★★★★★
★★★★★
Loyalty Program & Marketing Automation to create and retain loyal customers

Goody platform is an online loyalty program and CRM solution for POS and eCommerce systems with which SMBs and large enterprises use to create customized loyalty programs, communicate with customers and track business performance. With Goody, customers can accumulate points on purchases and then redeem the points for rewards.

Highlights
Top Business Usecases : Loyalty management,Engagement management,Customer feedback management
Top Features : Rewards,Gamification,Personalization
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Vendor: Goody

Company Size: 11-50

HQ Location: 31A boston road, Auckland, Auckland 2014, NZ

Financials: Private

purple Wifi Analytics

Leading WiFi Analytics & Data Solutions to build detailed customer profiles

4.33

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purple Wifi Analytics

4.33
★★★★★
★★★★★
Leading WiFi Analytics & Data Solutions to build detailed customer profiles

purple Wifi Analytics is a WiFi analytics tool that helps to build detailed customer profiles and better understand customer behavior. It helps to improve consistency, acquire customers and increase sales and revenue.

Highlights
Top Business Usecases : Social media management,Engaging on social media,Social media analytics
Top Features : Dashboard
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Vendor: Purple.ai

Company Size: 51-100

HQ Location: Meadowbank House, Meadowbank Business Park, Tweedle Way, Chadderton, Oldham, OL9 7LD, GB

Financials: Private

iPresso

iPresso Marketing Automation

4.27

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iPresso

4.27
★★★★★
★★★★★
iPresso Marketing Automation

iPresso is an integrated marketing automation platform for pro marketers allowing them to creatively design their communications and scenarios. It helps to grow market share and improve efficiency.

Highlights
Top Business Usecases : Helpdesk management,Loyalty management,Campaign management
Top Features : Personalization,Alerts: popups & Notifications,Dashboard
iPresso Icon

Vendor: encja.com

Company Size: 11-50

HQ Location: encja.com S.A., 40-514 Katowice, ul. Ceglana 4

BrandChamp

All-in-one brand ambassador management software

4.17

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BrandChamp

4.17
★★★★★
★★★★★
All-in-one brand ambassador management software

Brandchamp is a brand ambassador software platform that provides ambassador marketing programs to drive growth and revenue. It is suited for any internet-based program to build, manage and scale marketing activities with customers and ambassadors.

Highlights
Top Business Usecases : Loyalty management,Social media management,Engagement management
Top Features : Gamification,Rewards,Personalization
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Vendor: BrandChamp

Company Size: 1-10

HQ Location: 78 Bonham Strand,, 25/F, Sheung Wan, Hong Kong 000000, HK

Bunchball Nitro

Drive engagement with the leading enterprise gamification platform

4.00

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Bunchball Nitro

4.00
★★★★★
★★★★★
Drive engagement with the leading enterprise gamification platform

Bunchball’s Nitro is a cloud-based enterprise gamification platform that combines engagement activities with proven motivation techniques to achieve desired results. It is suited for businesses of any size to engage users in high-value activities that have an impact on business.

Highlights
Top Business Usecases : Engagement management,Engaging and following up,Loyalty management
Top Features : Gamification,Rewards,Leaderboards
Bunchball Nitro Icon

Vendor: BI Worldwide

Company Size: 1001-5000

HQ Location: 7630 Bush Lake Road, Minneapolis, MN 55439-2810, US

Financials: Private

Splio

Loyalty Marketing Platform to engage and retain their prospects and customers on all channels

4.00

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Splio

4.00
★★★★★
★★★★★
Loyalty Marketing Platform to engage and retain their prospects and customers on all channels

Splio is a Loyalty Marketing platform that helps marketers engage and retain their prospects and customers on all channels creating long-term and profitable relationships. It also helps to enter new markets and increase sales and revenue.

Highlights
Top Business Usecases : Engagement management,Engaging and following up,Loyalty management
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Vendor: Splio

HQ Location: 27, Boulevard des Italiens, Paris, 75002, FR

Core Performance

Experts in Performance Improvement and Engagement

4.00

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Core Performance

4.00
★★★★★
★★★★★
Experts in Performance Improvement and Engagement

CORE Performance is a performance improvement and engagement program that is a highly effective way to unlock the potential of the people that can shape the success of business. It motivates employees, sales teams, distributors or dealers, and end-user customers to achieve outstanding performance and meet business objectives for a competitive market.

Highlights
Top Business Usecases : Engagement management,Engaging and following up,Loyalty management
Top Features : Gamification,Rewards
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Vendor: CORE Performance

Company Size: NA

HQ Location: 3150 Main Street, Suite 201, Duluth, GA 30096, US

Cheetah Engagement Data Platform

Engagement Data Platform to personalize all marketing channels at scale

3.49

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Cheetah Engagement Data Platform

3.49
★★★★★
★★★★★
Engagement Data Platform to personalize all marketing channels at scale

Cheetah Engagement Data platform provides real-time data collection, unification, segmentation, and insights, while enabling personalized cross-channel communications, customer experiences, and loyalty programs all from one platform. It is built to drive customer engagement and the platform enables end-to-end customer lifecycle management, driving revenue and customer lifetime value.

Highlights
Top Business Usecases : Engagement management,Engaging and following up,Helpdesk management
Top Features : Personalization
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Vendor: Cheetah Digital

Company Size: 1001-5000

HQ Location: 72 W Adams St, Floor 8, Chicago, Illinois 60603, US

Financials: M&A