Custom loyalty program software

What loyalty program software needs to do

A loyalty program is only as good as its weakest moment: the customer who earned a reward and cannot redeem it because they bought online and are now at the counter. The software has to recognize the same person everywhere they buy, keep an accurate balance, and make earning and redeeming take seconds at a busy register.

A working loyalty system usually handles:

• Earning rules: points per dollar, punch cards, visit counts, bonus items, double-points days and birthday rewards.
• Tiers that add perks once a customer passes a spend or visit level.
• Rewards customers can choose, with limits on stacking with other discounts.
• Customer lookup by phone number, app, card or email at the register and at online checkout.
• Referral rewards for bringing in a friend.
• Gift cards, physical and digital, with balances that work across every location and online.
• Expiration, returns and refunds that adjust points and balances correctly.
• Messages to members by text, email and push notification, triggered by behavior like a long gap since the last visit.
• Reporting on member spend vs non-members, redemption rates and the cost of rewards given out.

Off-the-shelf loyalty and gift card software vs custom

If you run one location on one point of sale, start with what your POS offers. Square, Toast and Clover each offer loyalty and gift card features built for their own registers, and Shopify stores can add apps like Smile.io for points and referrals. Platforms like Yotpo bundle loyalty with reviews and marketing for online brands. These cover a standard points program well.

Custom gift card software and loyalty program apps make sense when the program has to work across systems that do not talk to each other: several locations on different POS systems, a business that sells in store, online and through bookings, a franchise that needs to settle reward costs between owners, or a program that rewards behavior a POS cannot see, such as reviews, referrals, class attendance or service visits. It also makes sense when the loyalty app is part of your brand, combining ordering, booking, membership and rewards in one app you own.

Gift card rules to plan for

Gift cards carry rules that points do not. Federal rules generally limit how soon gift cards can expire and when dormancy fees can be charged, and many states add their own rules, including unclaimed property (escheat) rules for balances that are never used. Unused balances also affect how you report revenue. We build the software to follow the policy you set, but have your accountant and lawyer confirm that policy for each state you sell in.

What we build

• A branded loyalty app or web wallet showing points, tier, rewards, gift card balances and a scannable member code.
• POS integrations with Square, Toast, Clover, Shopify or others that offer an API, so earning and redeeming happens at checkout.
• Digital gift cards sold online, delivered by email or text, with balance checks and reloads.
• A rules engine for earning, tiers, bonuses and expiration that your team can adjust.
• Automated campaigns: win-back offers, birthday rewards and tier upgrade messages.
• Franchise and multi-location reporting, including what each location issued and redeemed.
• Fraud checks for unusual earning or redemption patterns.

How a loyalty project works

1. Decide the economicsWe work out what a point is worth, what rewards cost you and which behavior you want more of.
2. Map every checkoutWe list each place customers buy, the system behind it and how a member will be recognized there.
3. Design the app and register flowYou click through the member app and the cashier flow before code is written.
4. Build in roundsMember accounts and earning first, then rewards, gift cards, campaigns and reporting.
5. Move balances and launchWe import existing members, points and gift card balances so nobody loses what they earned.