When building the tech behind a loyalty program, companies often reach a crossroads. Each path comes with its own balance of cost, control, and complexity.
From my experience, I’ve seen four solid options—and one that can be a bit risky. Here’s a look at some pros and cons:
1. DIY: Build In-House 🏠
This is often the simplest and least expensive option—no RFPs, no consultants. It’s a good choice if you have time and an experienced product team. In-house teams have full control, which can make customization easier.
However, an industry veteran once told me he’d never seen a purely in-house loyalty program that didn’t either struggle or leave potential untapped. Loyalty programs tend to compete for resources across departments, and being deprioritized in any one area can stall the whole program.
2. Big Consulting Firms 💼
Large consultancies (e.g., BCG, Accenture) offer high-budget solutions if you want to outsource most of the project. These firms are typically well-equipped for complex, large-scale rollouts.
A note of caution: consulting firms often add layers of planning and research, which don’t always yield practical insights. One company, for example, spent millions with a “Cadillac” consulting firm only to be advised that “personalizing the loyalty program with data” was the key to success. Wow. Very insightful.
3. Big Software Platforms 💻
Partnering with established software providers (e.g., Oracle, Salesforce) can be a good option, especially if the software comes bundled into larger contracts. For example, Oracle CrowdTwist can be a viable option because it integrates directly with the Oracle suite, potentially making rollout faster and easier.
But beware: even with prebuilt platforms, there’s a risk of a “one-size-fits-all” solution that may not fully align with your unique goals.
4. Loyalty Experts ⭐️
If you want to partner with an experienced team while still keeping ownership, specialized loyalty experts are a great route. This approach is one I’ve personally seen succeed (hence my interest in the space).
Done correctly, loyalty experts can help secure executive buy-in for the right reasons and avoid the constant Dev/Product prioritization issues by providing dedicated resources.
Of course, conflicts of interest can still arise, but in my experience, loyalty professionals tend to be genuinely customer-driven. Crafting a winning program is often what they live for.
5. Marketing/Ad Agencies ⚠️
I’ve heard of ad agencies offering to build loyalty programs, but these often end up as siloed, stagnant projects. If anyone has had success with an ad agency in this space, I’d love to hear about it—I’m open to the idea but have my doubts.
Crafting a successful loyalty program is all about finding the right approach for your business and customers. Each path comes with unique benefits and challenges, making it essential to align your choice with your strategic goals.
I’d love to hear from you! Join the conversation on LinkedIn—share your experiences, challenges, and insights. Connect with us at Shrine Development, or reach out directly to me here.
