Four Pillars of a Loyalty Program
Loyalty programs succeed when they are built on four interconnected pillars. These pillars define how the program operates, engages customers, and delivers value.
When designing a loyalty program, it’s helpful to think in terms of four key pillars: Data, Rules, Rewards, and Interface. Each pillar represents a core component of your program and must work together to deliver a seamless, effective experience. The sections below outline what to consider for each.
1. Data
Every loyalty program starts with data. This includes not just the behaviours you want to track and reward, but also where this data comes from, how users are identified, and how systems connect.
The Events module in the Loyalty Engine is responsible for capturing this data. Each event represents a user action or business activity that’s reported into the system and can be used to trigger rewards or other outcomes.
Key considerations:
Which customer behaviours do you want to track and reward? For example, transactions, sign-ups, referrals, or product reviews. These actions are defined as event types in the Loyalty Engine.
What aspects of each behaviour are relevant? If rewarding transactions, do you want to reward based on total spend, products purchased, brands, payment method, or something else? This defines what data you need to collect and send in an event's payload.
Where does the data live? Think about the source systems—e.g., e-commerce platforms, POS systems, CRMs—and whether they can integrate with the Loyalty Engine.
Where do user accounts originate? Are users already in a CRM or identity provider, or are they new to the loyalty program? This impacts how user data is synced and when loyalty accounts are created.
What is the source of truth for user data? Decide which system owns the user record and how data flows between systems.
What analytics or performance insights do you want from your loyalty program? Consider the KPIs and data you’ll need to evaluate program success.
2. Rules
Rules define how your loyalty program works. They determine what earns points, how users progress through tiers, what actions trigger which outcomes, and how rewards are controlled.
In the Loyalty Engine, Reactors handle this logic. Reactors listen for events meeting particular conditions and trigger reactions—like awarding points, giving out rewards, or calling webhooks.
Key considerations:
What actions or behaviours should earn rewards? Define your earn logic—for example, 1 point per £1 spent, or 50 points for a completed profile.
What limits or caps do you need to consider? For example, daily points earn and spend caps, reward redemption limits, or balance limits.
How will you manage liability? Decide how long points are valid for, when they expire, and how reward availability is controlled.
Do different audiences receive different logic? Consider whether VIPs, staff, or high-spenders get access to different rules or benefits.
3. Rewards
Rewards are what customers earn through participation. They’re the motivation behind engaging with your program—whether it’s money off, exclusive perks, digital vouchers, or physical goods.
In the Loyalty Engine, the Rewards module allows you to define and manage your program’s incentives. When a user earns a reward, it’s issued to their wallet as a benefit, ready to be redeemed.
Key considerations:
What rewards will motivate your customers? These could include monetary discounts, free products, exclusive content, branded merchandise, or digital gift cards.
How are rewards fulfilled? Are they automatic (e.g. vouchers sent via email), manually fulfilled (e.g. posted items), or redeemed in-store at POS?
Are rewards tied to specific behaviours, tiers, or audiences? For example, a £10 voucher for spending £100, or exclusive access for gold-tier members.
Do you want to apply limits or expiry? Rewards can be configured with limits, expiry dates, and availability based on criteria like time, location, or user group.
4. Interface
The interface is the customer-facing layer of your loyalty program. It’s where users track progress, explore rewards, and engage with your brand across digital and physical touchpoints.
The Loyalty Engine is API-first and doesn’t include a default front-end. You’ll need to either build your own interface or use one of White Label Loyalty’s white-label solutions — the Loyalty Microsite or Loyalty Mobile App — which handle much of the heavy lifting for you.
Key considerations:
How will users access the program? Will they access via web, mobile, in-store kiosks, or a combination? If your program is embedded within an existing user account system, you’ll need to ensure seamless integration and authentication.
What’s your registration and login flow? If users need to create loyalty accounts, how and when will that happen? Will it be automatic at the point of purchase, during account signup, or opt-in via email?
How do users see their balance, rewards, and activity? You’ll need to surface key loyalty data in your interface: points balance, available rewards, tier status, and historical activity. This data comes from the Loyalty Engine and needs to be presented clearly to end users.
What customer journeys must be supported at launch? For example: join program, earn points, view balance, redeem a reward, update profile, delete account, receive confirmation messages. Keep it simple – think about MVP vs. roadmap.
What branding and UX constraints exist? If you’re using a white-label interface, what configuration options do you have for styling and copy? If you’re building your own, what design and dev resources are available?
How will users redeem rewards? Will they redeem online, in-store, or both? Will they use voucher codes, barcode scanning, or native redemptions at checkout? This impacts not just UI but fulfilment integration too.
How will users get notified? The Loyalty Engine doesn’t send emails or push notifications, but it can trigger them in other systems — the comms themselves need to be handled by your own system or a connected tool like HubSpot or Klaviyo.
Is account deletion/opt-out required? If you’re building your own app or website, you may be required (especially under data protection laws or Apple or Google store policies) to provide a clear user path to delete their account or opt out of the loyalty program.
Wrapping up
By thinking through Data, Rules, Rewards, and Interface, you’ll have a solid foundation for your loyalty program design. These four pillars shape how your program functions and how customers experience it.
Once you’ve brainstormed aligned your thinking across these areas, the next step is turning that vision into a working solution.
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