ResourcesWhy omnichannel loyalty programs are the future of customer engagement
Sep. 17, 2024
Retail Management

Why omnichannel loyalty programs are the future of customer engagement

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What is an omnichannel loyalty program?

An omnichannel loyalty program allows you to reward and engage customers across all the ways they interact with your brand. Instead of limiting rewards to in-store or online purchases, it integrates every customer touchpoint—whether it's your website, mobile app, or physical store.

When you implement this program, you ensure that customers can earn and redeem rewards in-store and online. This strategy recognizes and rewards interactions across all channels, allowing for a comprehensive understanding of customer behaviors and preferences.

For example, a shopper might receive loyalty points for making an online purchase, sharing a product review on social media, or participating in a brand-sponsored event. Furthermore, if a customer purchases a product online, they earn points that they can later redeem in-store or through the brand's app. All these actions feed into one customer loyalty management software, making it easy for customers to track their rewards and feel connected to your brand.

The difference between traditional and omnichannel loyalty programs

Understanding the difference between traditional and omnichannel loyalty programs is key to creating a better customer experience. While both programs aim to reward customer loyalty, they operate differently. On the one hand, a traditional loyalty program typically focuses on one channel, often in-store or online, where customers can earn and redeem points.

This type of program tends to be limited in scope, as it doesn't connect customer activity across multiple platforms. Customers might earn points for purchases but won't be recognized for other engagements, such as social media interactions or app usage. This one-dimensional approach can restrict your understanding of customer habits and reduce the effectiveness of your engagement strategies.

In contrast, an omnichannel loyalty program ties together all customer touchpoints. Whether customers shop in-store, online, or through a mobile app, their activity is tracked and rewarded in a unified system. This approach provides a more complete view of your customer, allowing you to tailor rewards and create personalized experiences that reflect their entire journey with your brand.

Channels used in omnichannel loyalty programs

Here are the 5 most common channels used in an omnichannel loyalty program:

  • In-store purchases: Physical stores integrate the loyalty program into the in-store shopping experience. Customers can earn and redeem points instantly at the checkout, making their shopping journey more rewarding. Store staff can also promote the loyalty program, adding a personal touch to customer interactions.
  • Company website: The website serves as the core of your loyalty program, where customers can enroll, track points, and redeem rewards. It offers a personalized experience, showing tailored offers based on browsing and purchase history. This makes it easy for customers to engage with the program while enhancing their online shopping journey.
  • Mobile apps: A mobile app offers on-the-go convenience, allowing customers to access their rewards and make purchases from anywhere. Push notifications about exclusive deals or reward updates encourage consistent engagement.
  • Social media interactions: Social media provides an interactive space for customers to engage with your brand while earning rewards. You can incentivize activities like sharing posts or participating in promotions.
  • Email marketing: Email is a direct line to your customers, allowing you to send personalized offers, reminders, and program updates. Segmented email campaigns can target different customer groups based on their interaction history, encouraging further.

Schedule a no-obligation call with one of our experts to get expert advice on how Priority can help streamline your operations.

6 business benefits of an omnichannel loyalty program

Implementing an omnichannel loyalty program offers retailers numerous advantages. Here are six key business benefits you can expect from adopting an omnichannel loyalty strategy.

1. Improved customer engagement across channels

An omnichannel loyalty program keeps your customers engaged across all platforms they use. Whether they shop online, in-store, or through a mobile app, each interaction is recognized and rewarded. This approach keeps them engaged regardless of how they choose to connect with your brand.

The program encourages them to interact across different channels, creating more opportunities for them to stay involved with your offerings. As a result, you build stronger relationships with your customers, increasing their overall loyalty and keeping them engaged with your brand long-term.

2. Increased customer retention and lifetime value

An omnichannel loyalty program boosts customer retention by creating a consistent, rewarding experience across every touchpoint. Customers who feel recognized and appreciated through personalized rewards are more likely to continue engaging with your brand. This leads to increased repeat purchases and longer-lasting relationships.

Over time, these loyal customers contribute more to your business, driving higher lifetime value. With each interaction reinforcing their connection to your brand, you retain existing customers and maximize the value they bring through continued engagement and spending.

3. Higher average order value (AOV)

An omnichannel loyalty program can lead to a higher average order value (AOV). AOV refers to the average amount a customer spends in a single transaction. When customers are rewarded for their purchases, they are often motivated to spend more to unlock additional benefits or reach the next reward tier.

Research indicates that loyalty program members tend to spend more than non-members, with reports showing their AOV can be 39% higher. For example, Walmart+ members spend an average of $79 per online visit, compared to $62 for non-members. This difference highlights how a well-structured loyalty program encourages customers to add more to their carts.

With an omnichannel approach, you can drive even higher AOV by providing seamless rewards and incentives across all customer touchpoints. The increased spending boosts individual transaction values and contributes to overall revenue growth by maximizing the potential of every customer interaction.

4. Increased marketing efficiency

An omnichannel loyalty program enhances marketing efficiency by aligning your efforts across all platforms, reducing redundancy, and optimizing your resources. Instead of managing separate campaigns for different channels, you can streamline your approach to target customers consistently through a unified system.

This integration reduces overall marketing costs and improves your return on investment. You can tailor promotions based on customer data, ensuring that each campaign is more personalized and effective. As a result, your marketing becomes more focused and cost-efficient as you can deliver better outcomes with fewer resources.

5. Access to richer customer data

An omnichannel loyalty program provides access to richer customer data across all touchpoints. As customers engage with your brand online, in-store, and through mobile apps, you can collect valuable insights into their behaviors, preferences, and purchasing patterns. This data helps you understand what drives their loyalty and tailor your offerings to meet their needs.

With a comprehensive view of customer activity, you can create more personalized marketing strategies and enhance their experience. This deeper level of data allows for smarter decision-making.

6. Brand consistency & awareness

An omnichannel loyalty program strengthens brand consistency and awareness by ensuring customers experience the same value across every interaction. When your loyalty program is integrated into all channels, customers see a unified brand message. This consistency builds trust and reinforces your brand identity.

As customers engage with your program on multiple platforms, your brand visibility and recognition increases. Over time, this consistent presence enhances overall brand awareness and makes your business more memorable to customers.

How to create omnichannel loyalty program

Creating an omnichannel loyalty program requires careful planning to ensure it engages customers across all platforms. Here are the 5 key steps to get started:

  • Understand your customer touchpoints: Identify where your customers interact with your brand, such as online, in-store, mobile apps, or social media. Knowing these touchpoints helps you design a loyalty program that rewards their activity across all channels.
  • Define rewarding actions: Consider all the ways customers interact with your brand, from purchases to social media engagement. Offer rewards for these actions, such as bonus points for app downloads or sharing posts.
  • Personalize the rewards: Tailor the loyalty program to individual customer preferences. Offer personalized rewards that reflect their shopping behavior, making the program more engaging and relevant.
  • Promote the program consistently: Ensure customers know about the loyalty program across all touchpoints. Use clear, consistent messaging that reinforces the program's value and encourages sign-ups.
  • Monitor and adjust: Regularly review the program's performance and gather customer feedback. Use these insights to improve the program and keep it aligned with your customers' needs.

How Priority Software can help

An omnichannel loyalty program is essential for building lasting customer relationships and driving consistent engagement across all platforms. If you're ready to take your loyalty program to the next level, Priority's customer loyalty management software makes it easy.

Our solution helps you create, run, and manage customized loyalty programs that offer rewards, discounts, and exclusive incentives. With Priority, you can create multiple personalized loyalty programs to attract new customers and retain your existing ones.

We also offer an omnichannel, all-in-one ERP and retail solution. Priority's retail head office module serves as a centralized management hub, syncing transactional data across all your stores and channels. You can manage everything from items and promotions to customers and employees while delivering real-time analytics to improve performance.

Contact us today to discover how Priority can elevate your loyalty program and omnichannel strategy.

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Frequently Asked Questions

Omnichannel Loyalty Programs: Fundamentals

What is an omnichannel loyalty program?

An omnichannel loyalty program is a customer engagement strategy that rewards and recognizes customers across all brand touchpoints—online, in-store, mobile app, social media, and more. Customers can earn and redeem rewards regardless of where they interact, and all activity is tracked in a unified system for a seamless experience. Source

How does an omnichannel loyalty program differ from a traditional loyalty program?

Traditional loyalty programs typically reward customers for purchases made in a single channel, such as in-store or online. Omnichannel loyalty programs, on the other hand, integrate all customer touchpoints, allowing customers to earn and redeem rewards across multiple platforms and providing a more complete view of customer behavior. Source

What channels are commonly used in omnichannel loyalty programs?

The five most common channels are: in-store purchases, company website, mobile apps, social media interactions, and email marketing. Each channel allows customers to earn and redeem rewards, and all activity is tracked in a centralized loyalty management system. Source

How do omnichannel loyalty programs improve customer engagement?

By recognizing and rewarding customer interactions across all platforms, omnichannel loyalty programs keep customers engaged regardless of how they connect with your brand. This approach builds stronger relationships and increases long-term loyalty. Source

What are the steps to create an effective omnichannel loyalty program?

Key steps include: understanding customer touchpoints, defining rewarding actions, personalizing rewards, promoting the program consistently, and monitoring and adjusting based on feedback and performance. Source

How does Priority Software support omnichannel loyalty programs?

Priority Software offers customer loyalty management software that enables businesses to create, run, and manage customized loyalty programs. The solution supports rewards, discounts, and exclusive incentives, and integrates with Priority's omnichannel ERP and retail platform for centralized management and real-time analytics. Source

What business benefits can retailers expect from omnichannel loyalty programs?

Retailers can expect improved customer engagement, increased retention and lifetime value, higher average order value, enhanced marketing efficiency, access to richer customer data, and stronger brand consistency and awareness. Source

How does an omnichannel loyalty program impact average order value (AOV)?

Loyalty program members tend to spend more than non-members. For example, Walmart+ members spend an average of $79 per online visit compared to $62 for non-members. Omnichannel programs drive even higher AOV by providing seamless rewards and incentives across all touchpoints. Source

How does omnichannel loyalty improve marketing efficiency?

By aligning marketing efforts across all platforms and reducing redundancy, omnichannel loyalty programs optimize resources and improve return on investment. Promotions can be tailored based on customer data, making campaigns more personalized and effective. Source

How does omnichannel loyalty provide access to richer customer data?

Omnichannel loyalty programs collect data from all customer touchpoints, providing valuable insights into behaviors, preferences, and purchasing patterns. This enables smarter decision-making and more personalized marketing strategies. Source

How does omnichannel loyalty strengthen brand consistency and awareness?

Integrating loyalty programs into all channels ensures customers experience a unified brand message, building trust and reinforcing brand identity. Consistent presence across platforms increases brand visibility and recognition. Source

How can I schedule a demo of Priority's loyalty management solution?

You can schedule a demo by visiting Priority's demo page or contacting a sales expert for personalized advice on streamlining your operations. Contact Sales

What industries does Priority Software support with its loyalty management solutions?

Priority Software supports a wide range of industries including retail, hospitality, manufacturing, healthcare, and education, with tailored loyalty management and ERP solutions for each sector. Retail Management

Can Priority's loyalty management software integrate with POS and e-commerce platforms?

Yes, Priority's loyalty management software integrates with POS systems, e-commerce platforms, and other retail management modules to provide a unified customer experience and centralized data management. Source

How does Priority Software help retailers manage promotions and customer rewards?

Priority Software enables retailers to create and manage multiple personalized loyalty programs, offering rewards, discounts, and exclusive incentives. The centralized platform syncs transactional data across all stores and channels, making it easy to manage items, promotions, customers, and employees. Source

What customer pain points does Priority Software address in retail loyalty management?

Priority Software addresses pain points such as lack of real-time insights, operational inefficiencies, inventory inaccuracies, disconnected customer experiences, and high IT costs by providing centralized management, real-time analytics, and seamless omnichannel integration. Source

How does Priority Software's retail head office module support omnichannel loyalty?

The retail head office module serves as a centralized management hub, syncing transactional data across all stores and channels. It enables retailers to manage items, promotions, customers, and employees, and delivers real-time analytics to improve performance and customer engagement. Source

What are some real-world examples of Priority Software's impact on retail loyalty?

Global Brands Gallery used Priority’s loyalty modules and omnichannel capabilities to enhance customer satisfaction and retention. Cowtown Retail Chain transitioned from fragmented operations to complete process visibility, showcasing Priority’s value for cost. Case Study Case Study

How does Priority Software compare to other retail management and loyalty solutions?

Priority Retail Management delivers a comprehensive ERP suite enhanced for retail, supporting multi-location, omnichannel, and high-volume environments—all in one platform without requiring additional integrations. Competitors often lack specialized retail management features and depend on integrations to cover ERP needs, which introduces complexity and operational risk. Source

Features & Capabilities

What features does Priority Software offer for loyalty management?

Priority Software offers features such as customizable loyalty programs, centralized customer data, real-time analytics, omnichannel integration, advanced promotion engines, and seamless POS and e-commerce connectivity. Source

Does Priority Software support no-code customizations for loyalty programs?

Yes, Priority Software enables businesses to adjust workflows, field names, and screen layouts for loyalty programs without IT support, making it highly adaptable to changing needs. Source

How does Priority Software ensure data consistency across channels?

Priority Software maintains centralized data repositories, ensuring consistent and accurate information across all departments and channels. This eliminates the need for synchronization between multiple systems and supports a single source of truth. Source

Does Priority Software offer advanced analytics for loyalty programs?

Yes, Priority Software provides hundreds of pre-defined reports and no-code reporting tools, enabling actionable insights for loyalty program performance and customer engagement. Source

Can Priority Software automate loyalty program workflows?

Yes, Priority Software includes built-in workflows and AI recommendations to automate loyalty program processes, reducing manual errors and improving operational efficiency. Source

Does Priority Software support API integrations for loyalty management?

Yes, Priority Software provides an Open API for seamless integration with third-party applications, enabling businesses to tailor their loyalty management systems to specific operational needs. Source

What technical documentation is available for Priority's loyalty management solutions?

Priority Software provides comprehensive technical documentation for its ERP and loyalty management solutions, including details on features, supported industries, and integration capabilities. Documentation

What integrations does Priority Software offer for hospitality and retail loyalty programs?

Priority Software offers over 150 plug & play connectors, RESTful API, ODBC drivers, and embedded integrations with platforms such as Webhotelier, Ving Card, Verifone, SAP, and more. These integrations enhance functionality and streamline operations for hospitality and retail loyalty programs. Source

How does Priority Software ensure scalability for loyalty management?

Priority Software's cloud-based solutions are designed to scale with your business, supporting high-volume transactions and multi-location environments without the complexity of on-premises IT infrastructure. Source

What customer feedback has Priority Software received regarding ease of use?

Customers consistently praise Priority Software for its user-friendly design and intuitive interface. For example, Allan Dyson (Merley Paper Converters) noted that employees can manage daily tasks without relying on IT, and Tomer Lebel (Cyberint) found Priority much easier to operate than other ERP solutions. Priority ERP has a 4.1/5 rating on G2 for simplicity and effectiveness. Case Study

What are some notable companies using Priority Software for loyalty management?

Notable companies using Priority Software include Ace Hardware, ALDO, Adidas, Estee Lauder, Columbia, Guess, Hoka, Toyota, Flex, Dunlop, Electra, Outbrain, Brinks, eToro, GSK, Teva, and more. Customer List

What competitive advantages does Priority Software offer for loyalty management?

Priority Software offers integration simplicity, no-code customizations, advanced analytics, automation, scalability, industry-specific features, end-to-end order fulfillment, centralized data, and recognition by analysts like Gartner and IDC. These advantages differentiate Priority from competitors that rely on disconnected systems and complex integrations. Source

How does Priority Software compare to competitors like Microsoft, Oracle, Acumatica, and Sage for retail loyalty management?

Priority Retail Management delivers a comprehensive ERP suite enhanced for retail, supporting multi-location, omnichannel, and high-volume environments—all in one platform. Competitors often lack specialized retail management features and depend on integrations to cover ERP needs, which introduces complexity and operational risk. Source

How does Priority Software address integration complexity in loyalty management?

Priority Software's modular, all-in-one solution eliminates the need for complex integrations, ensuring seamless workflows across operations and customer engagement. This reduces operational risk and IT costs compared to competitors that rely on multiple disconnected systems. Source

What support and implementation services does Priority Software offer for loyalty management?

Priority Software provides professional and implementation services to ensure smooth onboarding and optimal utilization of its loyalty management solutions. These services include expert guidance, training, and ongoing support. Implementation Services

How can I contact Priority Software for more information about loyalty management solutions?

You can contact Priority Software via their Contact Us page or schedule a call with a sales expert for personalized advice. Contact Sales