The kinds of platform
| Enterprise loyalty and CRM | POS-native loyalty | Built for you | |
|---|---|---|---|
| Examples | Punchh (PAR Technology), Paytronix, Thanx | Loyalty built into Toast or Square | Your own program, built on your data, or custom features on top of a platform |
| Fits best | Multi-unit and franchised brands that need segmentation, campaigns and many integrations | Brands on one POS that want a simple program running quickly | Brands whose program doesn't fit a vendor's template, or whose budget doesn't fit an enterprise contract |
| Watch for | Integration effort with your POS, ordering and app | Limited program design and data access | Maintenance, fraud controls and POS integration for in-store redemption |
Building your own used to mean a large team. Agentic AI tools have changed that: a small, senior team can now build a points, offers or subscription program shaped to your guests and your margins, and own the data from day one. You take on maintenance, fraud controls and the POS integration for in-store redemption, so it pays off when your program is genuinely different or the vendor price doesn't fit. A loyalty platform will usually get you about 80% of the way; the last 20%, the program mechanics that are yours, is where vendor customization and workarounds get expensive. Design & Build is how I do that work.
For context: PAR Technology bought Punchh in 2021 for about $500 million, combining loyalty with its POS and back-office products. Vendors consolidate and change ownership, so ask each one about its roadmap, not just its features.
Six questions to answer before you choose
- What program are you running? Points, visits, tiers or a paid subscription, and which guests each incentive is for. A platform can't fix a program that pays guests for visits they'd make anyway.
- Can guests redeem in one step everywhere? In the app, on the web and at the register. Offers fail at redemption; at Popeyes, fixing one redemption flow took checkout conversion from 3.36% to 9.82%.
- Does it integrate with your POS and ordering platform? Ask for live references running your exact POS and ordering combination.
- How do members sign in? A forgotten password ends the visit. Magic links took Jack in the Box sign-up success to 99%.
- Can you measure incrementality? You need holdout groups and margin by guest, not just redemption counts.
- Who pays, and how? In franchised systems, the cost and the value have to make sense to franchisees, or adoption stalls.