Building a Rewards & Loyalty Program on Platform

Updated on 24 Nov 2023

The Rewards and Loyalty System is a specialized platform or application that helps businesses implement and manage loyalty programs. It offers incentives, rewards, and personalized experiences to encourage repeat purchases and brand loyalty, ultimately attracting and retaining customers.

Although the Platform was not initially intended for loyalty software, its features can be utilized or customized to cover all the necessary functionality. Let’s explore the main features and functionality of rewards systems and how can be used in building one.

Feature coverage

User registration and data collection 

Users (customers) sign up for the loyalty program through various channels, such as online registration, mobile apps, or in-store sign-ups.

During the registration process, users provide their contact details and consent to share certain personal information. The software then collects and stores this data, creating individual customer profiles that include purchase history, preferences, and other relevant information. provides the possibility to create a user’s account using an email or phone number. This step can be integrated into any website page or inside the app.

You can add additional fields to extend the registration form, which then will be stored in the User’s profile.

For cases when an Administrator needs to add clients to the existing system, he/she can use the functionality of creating user accounts by the Administrator.

#User Management



Points and rewards configuration

Business administrators (owners or operators) use the rewards software to set up rules for earning bonus points or rewards.

They decide on the specific actions or behaviors that will be rewarded, such as making a purchase, referring friends, engaging with the brand on social media, or completing surveys, etc.

The software allows administrators to assign different point values to each action.

This component of the system should be additionally developed using the source code.

We have an existing role of Administrator, which can then manage the loyalty rules in their dashboard. Alternatively, an additional service role can be created for such a purpose.

The rewards or points will be then stored on the User’s account provided by

Below is one of the examples of the flow:

Building a Rewards & Loyalty Program on Platform

Points tracking and management

As customers engage with the business and perform the designated actions, the rewards software tracks their activities and automatically updates their bonus points balance.

The software keeps a real-time record of each user’s bonus points, reflecting the most recent transactions and actions.

This functionality can be covered by the following components of the platform:

  • Transaction history

  • Actions log

  • Transfer/Payments

A list of rules should be additionally developed to automate the issuing of bonus points based on User’s actions.

#view account



Reward redemption 

When users accumulate a sufficient number of points, they become eligible to redeem rewards.

The rewards software offers a catalog of available rewards, which may include discounts, free products, special offers, access to exclusive events, or other incentives.

Users can choose the rewards they want to redeem and complete the redemption process through the software.

This feature can be covered by payments (transfer), payment to merchants, and prepaid vouchers functionalities.

For example, Merchants registered in the system can accept payment in points for a specific list of their goods or in any of their POS. The collected points can be used to “buy a discount” or a prepaid voucher.

The automation of the flow is subject to additional development.






Personalization and segmentation

Software for rewards frequently has personalization and segmentation features included. By using the data collected from customers, the software can create tailored rewards and offers based on their individual preferences and behavior. This enables administrators to direct specific promotions towards customer segments that are relevant, thus increasing engagement. provides the possibility to categorize spending. This feature can help in further additional development of system behavior for rewards personalization.

#transaction categories

#merchant products categories

Loyalty tiers

Some programs have tiered levels where users can achieve higher status based on their loyalty, with each tier unlocking additional benefits and rewards. offers a pre-configured option to assign a certain type of contract to the User.

With additional development, such contract types can be extended with specific rules that will trigger different types of rewards and bonuses.


Communication and engagement

The rewards software helps businesses communicate with their customers.

Administrators can send personalized notifications, updates on rewards, special promotions, and other relevant messages through email, SMS, or push notifications in mobile apps.

The system allows to send different types of messages to its Users. Messages are sent via sms, email or in the User’s dashboard.

Additional development might be required to automate the specific flow/events that trigger the notification.



Analytics and reporting

The rewards software equips administrators with data analytics and reporting capabilities to measure the program’s performance, comprehend customer behavior, track the rewards’ effectiveness, and pinpoint areas for enhancement.

Analytics empower businesses to make informed decisions based on data to optimize their loyalty programs.’s reporting functionality is transaction based.

For more marketing and behavior-based analytics, additional integrations are required.


Integration with business systems

In some cases, rewards software can integrate with other business systems, such as point-of-sale (POS) systems, customer relationship management (CRM) platforms, and e-commerce platforms.

Integration guarantees a smooth connection between multiple systems and improves the customer experience.

The platform architecture is designed to allow a seamless and quick integration with third-party providers.

A set of the third-party providers should be identified by the business that will cover all the additional features required for their specific solution.