Customer Loyalty FAQ

Do you have a question about loyalty or want to learn more about what White Label Loyalty offers?
If so, you have come to the right place in our dedicated question and answer page!

General Loyalty Questions

A loyalty program is a marketing strategy which aims to develop a stronger relationship between a customer and a brand with the objectives of repeat sales, increasing profits and brand equity. Loyalty programs are systems set up by companies to enhance customer engagement, improve retention and increase the lifetime value of a customer.

Want to learn the basics of creating a successful loyalty program? Read our Loyalty Programs 101 guide.

There are many possible reasons why you might need a loyalty program! 

  • Are you struggling with customer retention?
  • Do you want to track what your customers are spending their money on?
  • Are you wanting to revitalise your e-commerce offering following tough financial times?
  • Do you want to have a working customer database that allows you to target and personalise your communications?

If any of those questions speak to you, you are in the right place! 

Customer loyalty programs are about creating brand advocates and stronger relationships between your company and your customers by rewarding them for that relationship.

Do you want some more questions answered around the ‘why’s’ of loyalty? Find them here.

White Label Loyalty can provide your business with data-driven technology that can help you power your customer and data strategy.

Some of the typical use cases we serve:

  • Launching a new loyalty program.
  • Replacing or enhancing and existing loyalty program
  • You need technology to help you power a brand activation.
  • You need a loyalty API.
  • Helping you to find ways to reach customers without relying on third party retailers and wholesalers.

If one of those options sounds like you, get in touch here.

There are quite a few ways in which loyalty programs can increase their revenue, find out about them below:

  • They can improve the average customer lifetime value.
  • They heavily increase customer retention 
  • By creating stronger (transactional and emotional) connections with customers – this makes your brand win over your competition in the repeat purchases decision making process
  • They create and improve on brand awareness
  • You can understand your customer better through 1st party data which allows you to data-driven strategies that will improve revenue.  

Want to know the top 6 characteristics of a good loyalty program? Read about them here!

We are proud that our platform is industry agnostic and can fit any use case within enterprise loyalty. Whether you need a complex end-to-end solution or just a loyalty API, we can help you power your customer loyalty. Please keep in mind, however, that our platform is generally not the right solution for SMEs.

There are a number of reasons why loyalty programs fail; here are a few: 

  • Not mobile first. There are 5.2 billion mobile #phone users in the world yet over 50% of all loyalty programs are not available on mobile. 
  • No personalisation. One size definitely does not fit all when it comes to loyalty. Each program should be unique and tailored to a brand’s target audience. 
  • Not flexible. Innovation in loyalty has stagnated. 99% of existing loyalty programs are only transactional, hence not flexible for rewarding other important customer behaviour.
  • The biggest problem relates to data, or more specifically the lack of understanding the data. Too many loyalty programs are not data-driven and are managed as a guessing game

Download our White Paper Here to find out more here.

Types of Loyalty Programs

This is the most common type of loyalty program, the one that might first pop into your head when you think of loyalty programs. In case you are a complete loyalty beginner, here’s the lowdown!

These programs in their simplest form allow you to collect points for the purchases that you make. Members of the program are incentivised by more desirable rewards to collect more points. 

Points don’t just have to be rewarded for purchases made; however, they could be retrieved as rewards for numerous actions that a customer involves themselves in.

A tiered loyalty program is a type of customer incentive program that rewards different groups of customers differently according to their tier. This type of program creates a hierarchical structure that expects a customer to meet a criteria set by the company in order to receive better rewards. The key benefits of a tiered loyalty program include:

  • They incentivise and reward certain behaviours by moving you up the levels. 
  • They provide the ability to prioritise certain segments of customers
  • Allow you to develop a stronger bond with customers. 
  • Furthermore, tiered loyalty programs tend to be more stable and predictable. 

Read our full article about tiered loyalty programs here.

A multi-tenanted loyalty program, or a coalition loyalty program, can be described as the participation of multiple brands in key market sectors who agree to share a common promotional currency, the member data collected, and the expenses required to operate the program. For a solution that covers multiple businesses, you can utilise a multi-tenanted loyalty program. This is a loyalty points program that is used across several different retailers, with customers earning points by shopping at each participating merchant.

Want to read more about coalition loyalty programs? Read the article here.

Top Tips for Loyalty Programs

The main benefits of loyalty programs include:

  1. Retaining more customers: A well-designed loyalty program can work wonders for customer retention. 
  2. You can personalise your marketing: Loyalty programs allow you to personalise your marketing to individual customers based on the data they share with you.
  3. They help to build your brand: A loyalty program is the perfect opportunity to showcase your core values and mission. 
  4. Increase your profits: Increase in revenue is a key benefit of loyalty programs, the most loyal customers are also the ones who spend the most.

Want to read the full article on the benefits of loyalty programs? Read here.

There are 6 great ways in which you can personalise a loyalty program. These are: 

  1. Loyalty program name: Making sure your brand stands out with a unique name
  2. Original personalised loyalty tiers: If you are bringing tiers into your program, you need to make sure that you are creative in the way in which they are branded. 
  3. Personalised rewards: You need to make sure that your rewards correspond with your targeted audience. 
  4. Loyalty program offers: With an event-based loyalty system, it is possible to reward any customer action. 
  5. Loyalty gamification: You can boost customer engagement by adding a gamification element to your loyalty program. Learn how to implement loyalty gamification successfully here
  6. Ways of earning points and rewards: You can personalise the way in which loyalty points are earned and what rewards are received for those points. 

Want to read more detail about how you can personalise your loyalty program? Read the full article here.

There are 7 great ways in which you can promote a loyalty program. 

  1. Retail promotion: train sales staff to promote loyalty program to customers
  2. Packaging: Make sure that packaging maximises the promotion of your loyalty program. 
  3. E-Commerce: Utilise the benefits of e-commerce to promote your loyalty program.
  4. Usual marketing channels: Use social media and your website in order to establish a positive emotional connection with your customer for promotion. 
  5. Referral: Word of mouth is vitally important for promoting your loyalty program. 
  6. Business to business: Make sure you promote your loyalty program to your business clients. 
  7. Dedicated explainer page: Make sure there’s a clear place for customers to go to find out about your loyalty program that is updated regularly. 

Read the full article on how to best promote your loyalty program here .

Defining Loyalty Tech Terms

Card linking technology is a way for consumers to link their payment card to a merchant’s loyalty program. As a customer how many times have you been asked to provide a loyalty card meaning that you lose valuable points? Card linking is the solution to bypass this frustrating stumbling block for your customers. 

Want to read more about card linking? Visit our blog all about it here.

Receipt scanning in a loyalty sense is a great data capture solution designed to allow businesses to gain detailed customer purchase data. 

When a customer makes a purchase, they upload a picture of their receipt using their app. The app then pulls the data from receipt and this provides their loyalty points. The amount of points they acquire is relative to how the loyalty program is set up.

Want to learn more about receipt scanning? Visit our blog all about it here.

API simply stands for Application Programming Interface. There are different types of APIs you can use in loyalty in order to power your existing infrastructure. The application programming interface is the messenger that takes requests and delivers the answers. A non-technological example of this is a waiter being the messenger in a restaurant. He or she tells the kitchen what to do and brings the ordered food back to the customer.

Interested in what API can do for you? Find out here.

SDK stands for software development kit. The software development kit makes it easier for businesses to integrate our technology into their systems including their website or mobile app.

For example, if you already have an app that you want your customers to be able to scan receipts. This is where you could use our SDK to add that feature to your app without much work.

More information on our SDK can be found here.

White Label Loyalty is an event-based loyalty platform and Loyalty Engine is a term that is specific to WLL. It’s the brains behind the operation that gives full control and insight into the data that is collected.

Firstly, the Loyalty Engine is the system that recognises when a user of the loyalty program has done something that classifies as an ‘event’. Secondly, the Loyalty Engine decides what action should be taken following the ‘event’. These actions are based on pre-set rules defined by the business running the loyalty program.

Want to learn about some more Loyalty Tech Terms? Find more definitions here!

White Label Loyalty’s AI module offers the following:  

  1. Firstly, the AI module can help to predict churn and customer lifetime value to understand potential ROI of individual loyalty program users
  2. Next, the module helps to segment users based on the above predictions and other user data
  3. It can also predict future customer journey and behaviour using marketing mix modelling techniques. 
  4. Using a product recommendation engine, the AI module can identify cross-sell and up-sell opportunities for the company as well as the next best offer. 
  5. Finally, through customer attribution analysis, the AI module can suggest the most suitable marketing channels for each user, based on how responsive they are likely to be.

Read 4 reasons why AI is the best move in customer loyalty right now here.

Loyalty programs may have found their feet with stamps and tokens but leaps and strides have been accomplished in the evolution of loyalty programs. 

There have been numerous changes to how loyalty works in the last few years with physical card loyalty becoming less and less prevalent with online/app-based marketing becoming the norm. 

To find out more about the history of loyalty programs, read our dedicated blog here.

Future of loyalty

White Label Loyalty’s AI module offers the following:  

  1. Firstly, the AI module can help to predict churn and customer lifetime value to understand potential ROI of individual loyalty program users
  2. Next, the module helps to segment users based on the above predictions and other user data
  3. It can also predict future customer journey and behaviour using marketing mix modelling techniques. 
  4. Using a product recommendation engine, the AI module can identify cross-sell and up-sell opportunities for the company as well as the next best offer. 
  5. Finally, through customer attribution analysis, the AI module can suggest the most suitable marketing channels for each user, based on how responsive they are likely to be.

Read 4 reasons why AI is the best move in customer loyalty  right now here.

Loyalty programs may have found their feet with stamps and tokens but leaps and strides have been accomplished in the evolution of loyalty programs. 

There have been numerous changes to how loyalty works in the last few years with physical card loyalty becoming less and less prevalent with online/app-based marketing becoming the norm. 

To find out more about the history of loyalty programs, read our dedicated blog here.

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