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Choosing A Customer Loyalty Program Software

April 13, 2020
3 Min Read
Choosing A Customer Loyalty Program Software

Modern consumers are constantly bombarded with advertisements, promotions and information. In an age where everyone seems to be screaming for attention, we encourage businesses to consider a more strategic approach.

Loyalty programs are an effective way to differentiate from competitors and engage your customers. When implemented correctly, these initiatives can increase lifetime customer value and drive more conversions.

The technology behind customer loyalty programs is really where the magic happens. In this post, we review factors you should consider when choosing a customer loyalty program platform, as well as recommendations based on our client experience.

Choosing A Customer Loyalty Program Software

With several options to choose from, how do you know which loyalty software provider is best for your company? We recommend that you first consider your company's budget and customization needs when deciding which loyalty platform to utilize.


As with any project, it's best to identify available funds early in the process. Ask yourself the following questions:

  • What is my budget?
  • How much will the program cost to maintain?

These questions will help you narrow loyalty platform options that will work for your company. Remember that scope and scale are both factors that influence price, so we recommend keeping an open mind as you go through the research process to identify options that fit your company best.


Not all platforms are created equal. When researching loyalty programs, clearly define the level of customization your business needs to achieve your goals.

Customization can range from point systems to tiered programs and many formats in between. As you go through the evaluation process, ask any platform providers specific questions to ensure their functionality will work best for you and your customers.

Overall, loyalty programs aim to enhance customer experience through meaningful relationships. 

We Recommend Smile.io

Although there are several loyalty platforms on the market, we typically recommend Smile.io (formerly SweetTooth Rewards) based on our client experience. Smile.io creates loyalty and rewards programs and has over 25,000 active reward programs with over 50 million participating program members.

Based in Canada, Smile.io focuses on fostering customer-company relationships that generate great customer experiences. Smile.io works with all types of companies from local stores to billion dollar businesses.

Smile.io offers three main types of customer loyalty programs:

  • Points
  • VIP
  • Referral

Points Program

A points program is the most common way to structure a customer loyalty program. Reward your customers at 3 common stages: join, engage and share. Encourage membership by offering rewards for simple things such as joining and making purchases.

Increase engagement with customers by offering points for things like writing reviews or celebrating birthdays. Finally, encourage customers to share your brand by rewarding social shares and referrals.

Customers are more inclined to write that review or share that social post if there is an incentive, like a discount, behind it. And they benefit your business, too, by increasing your social media presence and benefiting your SEO.

Customers will use their points to earn things like percentage discounts, free shipping, dollar discounts or free products. Settings like points expiration, rate limiting and earning conditions help to enforce that customers shop at your store in a timely manner.

VIP Program

VIP programs promise future perks; that's what makes them work. Increase customer engagement by offering additional rewards and status the longer a customer stays loyal to your brand.

Customize your VIP program by setting the milestone type, such as revenue or points. You can even customize milestone duration based on a 365-day period or customer lifetime with your company.

The biggest difference between VIP programs and point programs is that VIP programs focus on connections with your top customers, while point programs benefit all customers equally.

Referral Program

Referral programs offer points and rewards for customers who refer and share your brand. In this scenario, you can encourage referred customers to join your program.

Smile.io gives you control over the platforms your customers can send referrals from. Most importantly, they make it easy for your potential customers to claim and use their rewards. 


No matter what platform or customer loyalty program software you choose for your business, it's important to make your loyalty program work for your company and, more importantly, your customer.

Establishing those relationships will enhance the customer experience resulting in increased customer and brand loyalty - so, get excited!

If you have any questions about customer loyalty program software, contact us through the form below. Our team will be in touch!

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About the author
Director of Operations

With a passion for eCommerce marketing, Jaime Sunday writes about how to create a successful digital advertising campaign. They cover topics like Google Ads, Facebook Ads, and more.

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