Customer loyalty programs, rewards, and retention.
Key Functions
| Function | Description | AI Opportunity |
|---|
| Points System | Earn, redeem, balance | Dynamic earning |
| Tiers/VIP | Status levels, benefits | Auto-progression |
| Rewards | Catalog, redemption | Personalized offers |
| Referrals | Customer acquisition | Optimization |
| Campaigns | Bonus points, promotions | Targeting |
| Gamification | Challenges, badges | Engagement prediction |
| Analytics | Program performance, ROI | Churn prediction |
| Member Portal | Account management | — |
| Communication | Emails, notifications | Personalization |
| Integration | POS, ecommerce sync | — |
Core Entities
| Entity | Fields | Volume | Sensitivity |
|---|
| Members | profile, tier, points, history | High | High |
| Transactions | earn, redeem, adjustment | Very High | Medium |
| Rewards | catalog, availability, rules | Low | Low |
| Tiers | criteria, benefits, members | Low | Low |
| Campaigns | rules, targeting, performance | Medium | Low |
| Referrals | referrer, referred, status | Medium | Medium |
| Communications | messages, opens, clicks | High | Low |
Integration Points
| System | Data Flow | Direction |
|---|
| Ecommerce | Purchases, redemptions | Bi-directional |
| POS | In-store transactions | Bi-directional |
| CRM | Customer data | Bi-directional |
| Email | Program communications | Outbound |
| Mobile App | Member portal | Bi-directional |
| Analytics | Program metrics | Outbound |
Data Retention
| Data Type | Typical Retention | Compliance Driver |
|---|
| Member data | Program duration + 3 years | Privacy laws |
| Transaction history | 7 years | Financial audit |
| Points balance | Until expiry/redemption | Program terms |
| Campaign data | 2-3 years | Analysis |
Evaluation Criteria
| Criteria | Weight | Notes |
|---|
| Platform integration | High | Ecommerce, POS |
| Flexibility | High | Program customization |
| Member experience | High | Ease of use |
| Analytics | Medium | ROI measurement |
| Communication tools | Medium | Engagement |
| Pricing | Medium | Member-based scaling |
Market Leaders
| Product | Strength | Best For |
|---|
| LoyaltyLion | Ecommerce, Shopify | DTC brands |
| Smile.io | Simplicity, price | SMB |
| Yotpo | Reviews + loyalty | Full retention suite |
| Stamped | Reviews + loyalty | Shopify |
| Antavo | Enterprise, flexibility | Large programs |
AI Disruption Potential
| Function | Current State | 2027 Projection |
|---|
| Reward recommendations | Rules-based | Personalized |
| Churn prediction | Basic scoring | Predictive intervention |
| Dynamic earning | Fixed rules | Real-time optimization |
| Offer personalization | Segments | Individual |
| Program optimization | Manual analysis | Auto-tuning |
| Fraud detection | Rules-based | AI detection |
Build vs Buy: Buy for most. Loyalty infrastructure (points, tiers, rewards) is standard. Build only if loyalty is core differentiator.