Headless Loyalty Programs: Benefits, Technologies & Integration Steps

Does the term ‘headless loyalty program’ sound odd to you? Don’t fret, the word ‘headless’ doesn’t have any negative connotation here. It’s derived from the term ‘headless commerce,’ which was coined by a German entrepreneur named Dirk Hoerig in 2013. Headless commerce is an e-commerce architecture in which the front-end (also known as the head) is separated from the back-end functionality. The former can be edited or updated without any intervention with the latter. Likewise, a headless loyalty program is a loyalty program that’s built and structured using the headless architecture model. The front end is decoupled from the back end and connected via Application Programming Interfaces (APIs) as its foundational technology. In this blog post, we discuss some benefits of a headless loyalty program, the technologies behind it, and the steps using which you can integrate a headless loyalty program. Read on and thank us later.

What is a Headless loyalty program?

A headless loyalty program refers to a loyalty program that can operate without any assistance from the core business operations. This type of loyalty program enables businesses to create omnichannel experiences and enhance customer experience with the use of APIs. By adopting headless loyalty programs, businesses don’t have to track and control all touchpoints that loyalty program members use for shopping. 

Benefits of the Headless loyalty program

Even though the adoption of headless loyalty programs is growing slowly but steadily in the last few years, many companies have benefited from this type of loyalty program. Here are five benefits.

1. Flexibility

Would you be surprised to know that headless architecture provides greater agility and flexibility? No, that’s because the decoupled front-ends and back-ends allow businesses to make necessary changes without disrupting operations. As per the State of Commerce report by SalesForce, over three-fourths of organizations that use headless architecture models state that they witness greater flexibility and agility, which enables them to modify their storefronts far more quickly.

2. Enhanced collaboration

Apart from being extremely flexible and adaptable to new changes, headless loyalty programs can be integrated into a wide range of touchpoints including websites, social media, mobile apps, as well as brick-and-mortar stores. As all components of a headless loyalty program are connected by an API, it enables a team of developers to work independently without worrying about collaboration. When the intra- and inter-team collaboration is strong developers have the autonomy to design and develop the tech stack of their choice.

3. Cost-effective

A study conducted by WP Engine revealed that almost two-thirds of enterprise organizations use the headless approach. Of them, many use headless architecture to save development costs. Shortly, it’s projected that the cost of developing and managing programs will considerably reduce due to the adoption of headless architecture. Growing organizations that use headless architecture models save a lot on development costs as they expand their operations. That’s because the developers can quickly execute the clear-cut headless architecture development process, thereby not only saving considerable costs but also time and effort.

4. Personalization

When a manufacturer or a B2B company uses headless architecture, they can easily use customer data from various sources. That enables them to craft relevant and meaningful personalized rewards. Headless loyalty programs help in the development of customized designs and layouts for different endpoints, as developers can modify the front-end design without altering the back-end.

5. Scalability and consistency

Headless loyalty programs are highly scalable and consistent. They can easily expand without making any significant changes to the front-end and back-end operations or disrupting the entire system. This ensures that the headless loyalty program is efficient and effective with a growing customer base.  As headless architecture enables organizations to manage all customer touchpoints simultaneously, the user experience remains consistent. This creates a positive customer experience and a cohesive brand image. [pafe-template id="10457"]

The Technology Behind Integrating a Headless Loyalty Program

Here are some cutting-edge technologies driving the seamless integration of a headless loyalty program:

1. APIs

APIs are the backbone of headless architecture. They allow different applications and systems to interact and share data. Loyalty program APIs transfer information between the loyalty platform and different customer touchpoints.

2. Microservices

Microservices, also known as microservice architecture, are small and independent services that perform specific functions within the loyalty program. They can redeem rewards, calculate points, and register new members. Being extremely flexible and easy to maintain, they facilitate improvements and efficient updates.

3. CMS (Content Management System)

A headless CMS is a back-end-only content management system that mainly serves as a content repository. It ensures that content related to the loyalty program can be managed separately without a presentation layer (or built-in front-end). This allows for easy content modification and updates without affecting the program’s functionality.

4. Cloud infrastructure

Cloud-based solutions provide the necessary flexibility and scalability for headless loyalty programs. Cloud infrastructure ensures that the program can handle varying levels of traffic and data without compromising performance.

5. Data Analytics

Implementing data analytics tools enables businesses to gain insights into customer behaviour, preferences, and engagement patterns. These insights drive more effective loyalty program strategies and personalized rewards.

Steps to Integrate a Headless Loyalty Program:

Many business owners feel that integrating a headless loyalty program is an extremely complex and time-intensive process. But with the right strategies and steps, it’s extremely easy. If you are considering integrating a headless loyalty program, then here are the steps for you:1

1. Define your goals

First thing first, before integrating a headless loyalty program ask yourself “Why?” That question will help you find the purpose of your headless loyalty program. After you have found your purpose, define the goals you would like to achieve from your headless loyalty program.

2. Evaluate your extant infrastructure and resources

After you know your “Why?” and you’ve defined your goals quite clearly, it’s time to assess your existing infrastructure and resources. Some examples are your technology stack, customer touchpoints, and business goals to determine the best approach to integrating a headless loyalty program.

3. Partner with a trustworthy loyalty solution provider and select a high-quality loyalty platform

This is one of the most important steps that can make or break the success of your headless loyalty program. Look for a loyalty platform provider that’s well-known for its reliable headless capabilities. Make sure that it has a strong and proven track record and years of experience in designing and creating headless loyalty programs. Also, ensure that it aligns with your business requirements.

4. API integration

APIs are sets of rules and protocols that enable various software applications to interact with each other. Developing a headless loyalty program involves using APIs to connect various functionalities and components of the program. As noted Canadian computer scientist James Gosling said, “An API that isn’t comprehensible isn’t usable.”While integrating loyalty program APIs, make sure that you understand their functionalities as well as the data they’ll exchange between the loyalty platform and customer touchpoints.

5. Microservices Creation and CMS Integration

After integrating the APIs, develop microservices to handle specific loyalty program functionalities. The functionalities can range from accumulation and redemption of points as well as tier management. After that, integrate a headless CMS to manage loyalty program content and ensure consistency across touchpoints. [pafe-template id="13671"]

Summing up,

Headless loyalty programs are the future. Many manufacturing and B2B businesses that are going to adopt headless loyalty platforms are going to have a massive edge over the ones that rely on traditional loyalty programs. As per the State of Commerce report by SalesForce, eight out of every ten businesses that don’t have headless architecture today say they plan to implement it in the next two years. If you are planning to know more about headless loyalty programs, then contact LoyaltyXpert. We have designed and developed a high-quality headless architecture for some of our clients and have helped them achieve massive agility and cost efficiency. If you want a free demo, contact us today.