When it comes to starting a loyalty solution, businesses often face a big decision: should they make their own program from scratch or buy a ready-made one from someone else? It’s like choosing between baking a cake from scratch or buying one from the store. But guess what? You don’t have to pick just one anymore.
In reality, the build vs. buy debate is a false dichotomy. It’s no longer necessary to choose one approach over the other. Instead, businesses can benefit from both building and buying to create seamless customer experiences and maximize value for their end customers.
Building loyalty program from scratch
The debate between building a loyalty program from scratch or buying one off the shelf is a common one. Both options have their pros and cons, making the decision a tough one.
One major advantage is the control it gives you. You can customize every aspect of the program to fit your company’s vision and needs, from its design to its functionality. This level of personalization often leads to better understanding of your customers and more tailored experiences, which in turn can boost your return on investment.
Data security is another big factor pushing companies towards building their own solution. By developing in-house, you have the freedom to choose the technology stack and hosting setup, which is crucial for businesses handling sensitive data.
However, building from scratch comes with its own set of challenges. It takes time, money, and ongoing resources to develop and maintain the system. There’s also the risk of costly mistakes along the way, which can drain your finances and distract you from your core business goals.
Perhaps the biggest downside is that it shifts your focus away from what really matters: creating exceptional experiences for your customers. Instead of pouring all your energy into backend development, you could be differentiating your brand through memorable interactions with your customers.
In the end, the decision boils down to weighing the benefits of complete control and customization against the costs and distractions of building your own solution.
Buying loyalty software
Choosing to buy loyalty software from an external vendor, like those offered by SaaS companies, comes with its own set of trade-offs. However, many businesses find this option attractive because it offers cost savings, saves resources, and ensures quality.
With an off-the-shelf solution, you’re getting a loyalty system that has been extensively developed and tested by the vendor, often used by many brands. This means you can enter the market faster and on par with competitors. Additionally, these solutions are usually designed to integrate seamlessly with other systems like POS and CRM, making them easier to use for both you and your customers.
By relying on a vendor’s expertise, you can avoid the expensive mistakes that might occur if you were to build your own loyalty solution from scratch.
But, there’s a catch. Off-the-shelf solutions can limit your control and customization options. You might have to compromise on your ideal loyalty program design because of these restrictions. This could mean missing out on providing the unique and engaging experience your customers crave, settling instead for a one-size-fits-all solution.
So, while buying loyalty solution can save you time and money, it might not fully align with your vision for your loyalty program. It’s a trade-off between convenience and customization.
Scratch the build vs. buy dilemma – do both!
What if we told you that the age-old debate of building versus buying loyalty solutions isn’t a debate at all? It’s time to shatter that illusion and embrace a new approach—one that combines the best of both worlds.
Gone are the days of feeling forced to choose between building everything from scratch or buying off-the-shelf. Today, savvy businesses are realizing that they can have it all by strategically blending these approaches.
Instead of pouring all your resources into reinventing the wheel, focus on what truly sets your company apart. Invest in crafting unique interfaces, refining customer journeys, and innovating with original features that leave a lasting impression.
When it comes to purchasing, opt for standardized elements that form the foundation of any loyalty program. Why waste time and money recreating what’s already available? By buying what’s common, you free up resources for the aspects that truly define your brand.
At the end of the day, success in loyalty marketing boils down to one thing: delivering exceptional customer experiences. So, let’s shift the focus away from backend complexities and towards creating moments that delight and engage customers. That’s where the real value lies.
The future of building fully customized loyalty solution
As the API economy continues to thrive with increased investment, companies now have unprecedented opportunities to tailor their loyalty programs to their exact needs. According to Forbes, this surge in investment is fueling the rise of a new breed of loyalty engines that prioritize flexibility and customization.
With API-first and headless loyalty engines leading the charge, businesses can quickly assemble loyalty solution by cherry-picking the features they need. These modern platforms offer a treasure trove of ready-to-use loyalty and gamification features that seamlessly integrate with existing systems.
The headless approach is particularly revolutionary, allowing companies to mold user interfaces to fit any scenario across various touchpoints. This flexibility extends to making rapid changes whenever needed, ensuring agility in adapting to evolving market demands.
In essence, companies can now craft loyalty solution that not only meet but exceed customer expectations, thanks to the innovation brought about by API-first and headless loyalty engines.
Wrapping Up
The traditional build vs. buy dilemma when constructing a loyalty solution no longer needs to be a binary choice. Instead, businesses can adopt a hybrid approach that combines the best aspects of both strategies.
By carefully assessing their specific needs and priorities, companies can identify which components of the loyalty solution are best built in-house to align with their unique vision and requirements. These core elements can be tailored to fit the company’s brand identity and customer experience goals.
Simultaneously, businesses can leverage existing off-the-shelf solutions for standardized functionalities, avoiding the need to reinvent the wheel for common features. This approach saves time, resources, and minimizes the risk of costly mistakes.
Ultimately, by embracing a balanced approach that integrates both building and buying, companies can achieve a loyalty solution that offers the ideal blend of customization, cost-effectiveness, and time-to-market efficiency. This strategy empowers businesses to deliver exceptional customer experiences while maximizing the value of their loyalty programs in today’s competitive landscape.
