A New Perspective on Selling Loyalty Program Software

Think loyalty is just an add-on? Think again.

loyalty programs

Offering at least one loyalty program software option has become standard operating procedure for retail and restaurant value-added resellers (VARs). However, VARs and managed services providers (MSPs) focusing on a broader range of verticals are adding loyalty program software to their portfolios to meet the demand for solutions that increase engagement, revenues, and visibility into customer behaviors and preferences.

The Big Picture of Increasing Engagement and Revenue Through a Loyalty Program

Your clients have moved past legacy loyalty programs modeled after “punch cards.” They still see the value in rewarding loyal customers and using those rewards to incentivize return business. However, companies also recognize that loyalty program software can do more. First, it’s a way to build a total view of customers. The loyalty program is the common denominator within activity online, on the mobile app, in-store, and at a self-service kiosk.

Next, loyalty program software collects actionable data. It reveals trends, shows what customers like and what they don’t, and can even tell which rewards or promotions are most effective, helping businesses improve marketing ROI.

Furthermore, loyalty program software gives businesses a platform on which to build relationships with customers. They can help brands make emotional connections, a sense of community, and fun through gamification that, along with providing great products, services, and support, can go a long way toward loyalty.

Where to Sell Loyalty Program Software

In addition to understanding that businesses are relying on loyalty program software for more than rewarding return customers, VARs and MSPs also need to recognize that businesses across the spectrum are looking for the deep value that loyalty programs software can provide. If you provide solutions and services to these vertical markets, you should offer loyalty program software:

  • Banking and financial: Loyalty programs for credit card customers have become common – and competitive. Provide your clients with the flexibility to adapt to consumer demands and offer rewards that retain their business.
  • Transportation: Commuters may gladly enroll in a loyalty program for discounts or other rewards, but the business or agency operating the system, the data the software provides can identify crucial trends so service can run more smoothly.
  • Hotel and hospitality: Inns and bed-and-breakfasts have joined their larger counterparts in offering loyalty rewards, even using their programs creatively, for example, to incentivize reviews or referrals or book directly from their websites rather than through a third party.
  • Health and fitness: Keeping gym members engaged and increasing the rate of renewals can be a challenge. Loyalty program software can provide data clubs can use to optimize offers and promotions to keep people coming back.

What VARs and MSPs Need to Know

With expectations for what loyalty solutions will accomplish changing, VARs and MSPs must keep three essential points in mind to deliver effective solutions.

  1. One loyalty program solution probably won’t work for all of your clients. Even similar businesses may approach loyalty program structure and management differently. Furthermore, they may need to change their programs over time to be more effective and competitive. Flexible solutions can help future-proof a business’ investment.
  2. Loyalty program software must integrate with the business’ point of sale (POS) or management system. Siloed loyalty data won’t give businesses the deep insights that can help them learn more about trends and their customers’ behaviors.
  3. Customer engagement requires the capability to segment customer lists and communicate on all channels to deliver relevant promotions and offers. Help your clients find ways to use loyalty and CRM data to reach the right people with the right messaging.

In the past, you may have considered loyalty program software as a value-add or even just a way to build recurring revenue. However, your clients’ loyalty programs have become key to their business strategies, and they’ll demand solutions with the features and functionality they need.

Be the VAR or MSP that understands the role that loyalty program software plays in your clients’ success and implements solutions that help them reach their business goals.


The former owner of a software development company and having more than a decade of experience writing for B2B IT solution providers, Mike is co-founder of XaaS Journal and DevPro Journal.