The construct and use of loyalty programs are not a new phenomenon. Instead, they are a widely used tool implemented by marketing departments to stand out from their competitors. They have invested considerable resources in messaging and product positioning to those who have invested time, effort, energy, and capital into the concept of ‘loyalty.’ In today’s competitive, overcrowded marketplace, loyalty has become umbrellaed under the acronym LaaS (Loyalty-as-a-Service). For the emerging Fintech industry, the premise of LaaS is an efficient and effective way that [Fintech] seamlessly incorporates [their] loyalty programs into their existing products and services. The industry is initiating and integrating loyalty principles to differentiate itself from its many competitors.
Loyalty-as-a-Service (LaaS) is defined
Loyalty-as-a-Service (LaaS) is an echoed development of an established system of loyalty programs. However, the point of difference with LaaS is that companies use LaaS providers to create and supervise and manage [their] respective loyalty points programs instead of developing and managing their loyalty programs. LaaS providers proffer various services, from customer engagement and data analysis to product design and management.
Then what happens?
Using LaaS, they can focus on their core products or services while [still] providing a distinctive, [in] valuable loyalty program to their customers.
The current status of LaaS in the world of Fintech
The Fintech industry has pioneered using LaaS to build, maintain, and retain customer loyalty. Fintechs use LaaS providers to create and manage their loyalty programs, incentivizing their customers to use their products and services. These programs range from conventional, established rewards programs, such as cashback or points-based systems, to more innovative programs that proffer personalized rewards based on customer behavior.
Of critical benefit
One of Fintech’s critical benefits of utilizing LaaS is the ability and capacity to gather customized client data. By analyzing this information, companies can create personalized rewards tailored to their respective preferences, increasing [their] program’s effectiveness and subsequently improving the company’s core products or services.
Additionally, LaaS benefits Fintech companies by seamlessly integrating loyalty programs into their existing products or services. The customers can earn rewards for using [the] company’s products or services without signing up for a membership or a separate program.
In conclusion with Youtap
Loyalty-as-a-Service (LaaS) continues to be a growing imperative trend throughout the Fintech industry. Youtaps loyalty and rewards schemes integrate their loyalty platform into customer networks, providing clients with various customer retention schemes. By using Youtaps products and services, companies can create, initiate, and manage their loyalty programs, incentivizing customers to use them. In turn, their customer loyalty increases with the incentivization they proffer.
As LaaS continues evolving, more innovative loyalty programs that seamlessly offer customization and personalization will be introduced and implemented into their customer experience.