Home / Module 3: The Loyalty Toolset / Introduction to Loyalty Hubs
Introduction to Loyalty Hubs
A loyalty hub is where your loyalty members go to manage their loyalty accounts. From a loyalty hub, members should be able to see their loyalty balances, learn about the benefits of the program, find and consume rewards, understand their tier status, manage their personal information, and more.
The content found in loyalty hubs can be broken down into the following three major elements:
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Rewards Program elements
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Status Program elements
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Account Management
In this article, we'll spend a little time on each one.
Let's get started and be better together!
Rewards Program
Rewards programs are one half of the loyalty equation. Rewards programs let members earn points for their loyalty over time, then redeem them for benefits. In American Airlines's AAdvantage program, they're called "Miles," and they can be redeemed for free flights and more. With IHG One Rewards, members earn "Points" with each room night, which are valid for free stays in any of their thousands of hotels. Whatever they're called, and whatever the benefit, rewards programs are as common as they are popular.
In this section, we'll cover what makes rewards programs valuable, as well as highlight what technology is required to make these programs work in mobile games. We'll introduce the idea of partner rewards vs. owned & operated rewards, and survey what technology is needed to support both.
How to Create a Valuable Rewards Program
Beyond just servicing the full user flow of shopping for and consuming loyalty rewards, a loyalty hub has two responsibilities:
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Impress upon your players the value of the rewards that you offer
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Make your players feel invested in the program by showcasing how much currency they've amassed
How can you achieve this in mobile games? Your loyalty center will need to consider the following:
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The basics to driving value (awareness, credibility, and value perception)
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Offering a value spectrum of rewards, from achievable to aspirational
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Showing the right member the right reward with merchandising and personalization
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Offering your members partner rewards vs. owned rewards from your own assets
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How the earning and burning of your loyalty currency plays a role
We'll discuss each of these below, then dive into them more deeply in the article Loyalty Lift From Rewards Programs.
The Basics: Awareness, Credibility, & Value Perception
Awareness
Of course, players must be aware of the program! You can learn more about the best practices for this in the article Introducing Players to Loyalty.
Credibility
If your loyalty program includes partner rewards – that is, rewards offered from strategic partners, not ones available for redemption right in your app (see more on this below) – then you'll likely need to convince your players that the program and the rewards are real. We cover best practices for driving credibility in the article Loyalty Lift From Rewards Programs.
Value Perception
Finally, the most important element to driving value for your app is whether or not your players find value in your rewards. We'll cover this in more detail in the article Loyalty Lift From Rewards Programs.
What's Important:
For a loyalty program to create value, your players must be aware of it, believe that it's real, and value its offerings. There are ways to measure and test your way into success (and playAWARDS can help), and if you do, it can mean 20% more value for every install you get FOR LIFE.
Merchandising & Personalization
In the end, your rewards store is like any store. Just like having an in-app store for Fiat currency, having a loyalty store in your app will inevitably require some of the basics of e-commerce, like a SKU system, asset management, segmentation, sales and specials, and more.
Some of the most important aspects of merchandising and personalization include:
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The store is dynamic and feels fresh.
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You're showing the right reward to the right player at the right time.
We'll cover these goals in more detail in the article Loyalty Lift From Rewards Programs, but to accomplish the above, you'll need a rich set of tools outlined in the table below.
Tools You'll Need
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Short and long name
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Reward images in multiple form factors
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Outlet/Property/Location
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Short and long description
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Category
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Tags are very helpful
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If it's an in-app benefit reward, details supporting that
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Terms & conditions
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Whether or not it's refundable, cancellable
Basic Merchandising
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Snipes
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Which app(s) you want to be visible and/or featured in
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Specifying whether the reward is eligible to be purchased OUTSIDE the rewards store
Advanced Segmentation
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Value-based
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Game-behavior based
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Rewards-behavior based
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Geo-based
Price Elements
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Price
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Strike-out price
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Discount %
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Discount Reason
For the Purpose of Intelligence Gathering
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Reporting elements like retail value
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KPI measurement, including click tracking, purchase reporting, etc.
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A/B testing capabilities
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Ability to include/exclude specific test audiences/specific IDs
When you get into the world of Partner Rewards
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Redemption window: The duration between purchasing and redeeming your reward
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Restriction governance like partner-based redemption restrictions
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Redemption instructions, contact information, hours of operation, URLs, etc.
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Whether or not it should use partner-generated redemption codes, and a way to manage those codes
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Refund policies, etc.
Rich Rewards Metadata
These are all features that come out-of-the-box with a playAWARDS integration.
Reward Catalog Considerations
The most critical decisions you'll have to make when designing your loyalty rewards program is the composition of your catalog. Things to consider when constructing your catalog include:
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Whether or not you wish to include partner rewards. Partner rewards can bring with them a ton of value to both your loyalty members and your company, but they bring with them more work and pitfalls that you'll want to watch out for. playAWARDS can help you navigate the world of partner rewards. We'll go into partner rewards more deeply in the article Loyalty Lift From Rewards Programs, as well as our dedicated article on Owned & Operated vs. Partner Rewards.
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How to design an owned & operated rewards program that doesn't cannibalize in-app purchases. We'll cover this in more detail in the article Loyalty Lift From Rewards Programs, as well as our dedicated article on Owned & Operated vs. Partner Rewards.
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Creating chase with both achievable and aspirational rewards. We'll cover this in more detail in the article Loyalty Lift From Rewards Programs.
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Ensuring you're awarding your loyalty currencies in an optimal way. We'll cover this in more detail in the article Loyalty Lift From Rewards Programs, as well as the article Introduction to Loyalty Economies.
The playAWARDS Loyalty Center
When you partner with playAWARDS and integrate our SDK, you get a loyalty center and suite of supporting technologies that can handle everything needed for driving value with a loyalty hub.
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Tools for driving awareness, such as the loyalty webhook, which pushes loyalty messages out to your players within your app, and our FTUE.
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Tools for driving credibility, like dynamic homepage elements, including banners, cards, blockers, and more.
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Tools you need to merchandise and personalize your store, like segmentation, advanced pricing elements, testing, and more.
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Everything you need to support partner rewards, such as redemption information and advanced rewards restrictions.
Click here to learn more about the capabilities of the playAWARDS Loyalty Center.
Status Program
Status programs are the other half of the loyalty equation. While rewards programs are all about earning and getting, status programs are all about tiering up, enjoying the benefits, and feeling special. At MGM Rewards, players can graduate through Sapphire, Pearl, Gold, Platinum, and Noir. In Marriott's Bonvoy, members can progress through Silver Elite, Gold Elite, Platinum Elite, Titanium Elite, and Ambassador Elite. Whatever the tier names, and whatever their benefits, these programs leave loyalty members feeling rewarded with ever-richer benefits and ever-more special with money-can't-buy perks.
In this section, we'll introduce some concepts on how successful status programs drive value. We'll talk about how to craft the best benefits matrix, and what else status programs do when they "get it right."
Let's get started!
The Basics: Driving Value from Status Programs
Of course, there are some foundational elements of status programs that you must put in place. These are mostly found in the loyalty hub. They include:
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Status: There needs to be an area in your loyalty hub where members can see their current tier, their progress toward the next tier, and the time left to their tier expiration.
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Benefits: There needs to be an area which expresses the benefits of all the tiers of the program.
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Earn Methods: There needs to be an area which explains how they can earn more points toward a higher tier.
Driving value from status programs follows a similar pattern. You must first master the basics: driving awareness and value perception. We'll talk more about value perception in the sections below.
There's a third consideration that's core to the loyalty status experience – chase. Chase is the primary underlying way status programs change member behavior and create value – chase to both keep the tier they have as well as advance to a higher tier.
There are three main elements to achieving chase motivation:
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Feeling invested: Members need to be connected to their status, the benefits, and the investment they've made.
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Seeing progression: Members should understand clearly where they are in their progression toward keeping or advancing their status.
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"Almost There": The most motivational feeling is when you feel close to achieving a goal. When your members are about to gain or lose a tier, the iron is hot. Optimizing around this moment can yield a ton of value for the program.
In short, you'll drive value when you make it really clear where they are, where they're going, how to get there, and what they get if they do.
All of these value drivers are discussed in more detail including examples in the article Loyalty Lift From Status Programs.
What's Important:
Driving value in a status program starts with clearly demonstrating progression, especially as they begin to approach gaining or losing a tier.
The Two Motivators
Crafting the right set of benefits is all about catering to both intrinsic and extrinsic motivations. Neither one stands on its own. Both are important because they speak to different parts of your brain.
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Intrinsic motivators are instinctive and emotional and often look like things like special dedicated lines and VIP valet lanes.
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Extrinsic motivators speak to the rational part of your brain and include more measurable benefits, like 50% more chips in your daily bonus.
All of these value drivers are discussed in more detail including examples in the article Loyalty Lift From Status Programs.
Other Considerations
Status programs done right should also increase engagement, engender belonging, make monetization more rewarding, generate FOMO, amplify switching costs, amplify the customer's emotional connection to the brand, and help them rationalize their decisions. Suggestions for pulling this off are provided in the article Loyalty Lift from Status Programs.
All of these are discussed in more detail including examples in the article Loyalty Lift From Status Programs.
Test and Learn
Finally, it's important that you're able to gather data on your status program. Ideally, you would be able to A/B test it, but other methods could work as well. playAWARDS works with their partners on this.
Implications for Your Loyalty Hub
Of course, all of the above has implications on your loyalty hub and supporting technologies.
Account Management
Loyalty members also expect that their loyalty hub is where they would come to manage their account. This might include features such as:
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Managing their personal identifiable information
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Seeing their balances and account history
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Managing their connectivity across your game network
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Providing them a way to access customer support
Since these capabilities are so critical and foundational to loyalty hubs, let's discuss each one a bit more.
Loyalty Programs and CRM
Loyalty Programs and Customer Relationship Management (CRM) are two sides of the marketing coin. They're the two most important aspects of retention marketing, and they work hand-in-hand. CRM programs establish an ongoing, healthy relationship with your customers. Loyalty programs create customer motivations that keep them coming back and engaging more deeply with you. CRM programs are how companies talk to customers. Loyalty programs are how customers measure the progress of that relationship. CRM may be how you communicate, but loyalty programs are who they're communicating with.
Get your Players' Information
Achieving success with CRM first and foremost requires getting their contact information. For loyalty programs in mobile games, that means email and SMS, either thru a social method of authentication, a proprietary method, or some other means.
Loyalty Programs Can Help (Ask at the Right Time)
Asking players for their information is asking them to trust you. You should feel confident at the moment you ask them that they're ready to give it. Loyalty programs can play a key role in capturing player information, because it's the entity that the player is establishing trust with, but also because fulfillment often requires it. At playAWARDS for example, we capture name and email at the moment a player attempts to purchase a reward with their loyalty points. They're excited to provide a valid email because they want to receive their confirmation email. Learn more in the article Getting Signups.
A Channel for Updating
Customers will also expect to find in their loyalty hub a place to update their information. This is foundational to a loyalty hub.
The playAWARDS SDK and Loyalty Center supports this functionality.
Other Account Functionality
Beyond just managing personal information, it's the of a loyalty hub to:
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See loyalty balances (and manage them, where applicable)
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See rewards wallet/history (and manage rewards consumption, where applicable)
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(Potentially, if applicable) linking and syncing across games
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Have a way for them to get customer support (Read FAQs, start a customer support inquiry/ticket, get their support code, etc.)
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Any other account management, such as the handling of merging accounts
An important aspect of loyalty programs is learning about the members, getting their contact information, and developing a relationship with them through CRM. For this, your loyalty hub will need to have an account management center where members can manage their information, see their balances, and more.
What's Important:
Beyond the Hub
What about the presence for the loyalty program OUTSIDE of the loyalty hub and in the main app UI? What artifacts should be present and what are their best practices?
It's customary for the app to present the Loyalty status and balance(s), as well as provide several ways into the loyalty hub.
Of course, a deeper integration would include more artifacts. The deeper the integration, the more powerful and effective your loyalty program will be. Deep integration will be covered in another article. In this article, we'll only cover the basics.
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Loyalty Meter
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Loyalty Center Button
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Doobering
Loyalty Meter
The Loyalty Point Meter is the currency bar which indicates to the player how many LPs they have. It can come in several forms, including having or not having a progress bar.
Loyalty Center Button
The Loyalty Center Button is the direct call-to-action to access the Loyalty Center.
Doobering
“Doobering” is an animation the conveys the issuance of a currency. In this case, we are referring to either Loyalty Points, Tier Points, or both.
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Typical Animations: The typical animation includes the coins literally flying into the meter in which they reside, but other animations include coins/currency dropping in, or simply a pulsating of the meter as it increments or a ticker incrementation animation.
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Inform Without Distracting: The only best practice from a performance perspective is to inform without distracting the player; in other words, ensure the doobering doesn’t get in the way of main playfield play and/or appear to the player that they must wait for it to end before they can continue playing.
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When Space is Tight... When there’s no room on-screen to display the full meter/animation during game play, then a simple non-invasive indicator could illustrate a currency balance update on-screen, then vanish. This reassures the player that the currency is being earned.
What Is It Like to Work With playAWARDS?
The playAWARDS in-app technologies, supporting platform, and enterprise tools support everything your loyalty hub needs. We've been building loyalty technologies for over a decade and have matured it to a full end-to-end solution.
But you're never installing or operating a playAWARDS technology solution alone. When you work with playAWARDS, you gain access to our Integrations Team for managing your integrations, our Professional Services Team for ensuring you get up and running, and our Client Success Team for ongoing support and optimization.
Summary
In this article, we discussed the three major elements of a loyalty program and their implications on a loyalty hub.
Rewards Program Elements
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We discussed how to make a valuable rewards program (including driving awareness, credibility, value, personalization, and more).
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We discussed owned vs partner rewards, the pros and cons of each, and what to look out for.
Status Program Elements
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We discussed the basics of driving value with a status program.
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We discussed the two motivators.
Account Management
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We discussed how loyalty programs and CRM programs relate, data capture, and more.
Beyond the Hub
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We discussed what a successful implementation of features, artifacts, and widgets beyond your loyalty hub and out in your app looks like, including your loyalty meter, loyalty hub button, and currency doobering.
