The Loyalty Technology Maze




There are now more loyalty program technology options than ever before and new platforms and innovations are frequently launched into the market.

The technology required to deliver new loyalty programs can often be a new component of existing technology currently embedded inside the enterprise, a new vendor or completely outsourced.

No matter how much your enterprise might prefer building it’s own technology over buying an existing solution, there’s now a large range of loyalty providers that can help. They all have exceptional forward product roadmaps to help you build customer loyalty and a personalised relationship.

To help you select your next technology partner, our team of Loyalty Consultants suggest following these 6 selection criteria.



1. Who trusts them and are they winning?

A good shortcut to determine credibility is to find out who in your category has recently signed with them. Recent signings are useful because these are likely to be the new, contemporary loyalty program strategies that your new program will want to emulate.




2. Their sector speciality

The importance of this criteria will depend on the complexity of your business. If you’re in banking, supermarkets or wagering then this will be important.

For example, a bank loyalty strategy covers multiple bank products (payments, deposits, loans, insurance, investments) and is delivered through exemplary UX in the bank app. Supermarkets has Point of Sale systems and the need for speed and personalisation at the till.




3. Their team and how they work

You’re looking for a team you can work with and who can work with you. They need to be aligned to and in tune with your values and goals.




4. Their product roadmap and how they think about it

Understand what’s available today in their solution and how long could you work with them before you exhaust their unique advantage. Ask what will be coming in the next release.




5. Their fees and financial sustainability

The rewards your program gives to customers are likely your biggest loyalty program cost. These are typically about ½% to 1% of sales made by the members. The cost of the platform is rarely a driver of your business case and returns. There’s a race to the bottom on platform fees as competition between all the arriving entrants intensifies. Beware of the fees that seem too low. You want a partner that’s sustainable for the long term.


6. Their platform

Platforms and their capabilities are frequently at the top of the list but we’d suggest this could be at the bottom with the features noted above being more important. Here you want to know what the platform can do and how it integrates. At this point, your program strategy will have an informed program design that will determine your requirements.



New, innovative loyalty programs are coming to market faster than ever before! We hope this helps you in your search to find your next technology partner. If you need help through the loyalty technology maze, please reach out; we’ve successfully helped clients navigate the search.

In a recent engagement, our client commenced the search process seeking a POS-integrated loyalty platform. Through our curated and rapid face-to-face reviews with potential partners, our client’s requirements evolved with their understanding of the partner landscape, discounts available, support in Australia and their loyalty program design. They eventually went to market for a simple loyalty platform with a powerful Customer Data Platform (CDP) included and enterprise-wide marketing automation integrated.




We are Ellipsis, the Loyalty Experts. We help you measure, manage and grow customer loyalty​. We’re here to help, please get in touch





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