The Forrester Wave™: Loyalty Technology Solutions, Q1 2023

Loyalty Technology Solutions Vendor Product Comparisons 2023

Key features and pros and cons of top Loyalty Technology Solutions products:

Capillary Technologies - Leaders

Pros:

Robust partner ecosystem that includes tech providers, reward partners, and service providers
Commercial model designed so clients can buy only the functionality they need
Robust functionality and flexible data model
Excels in both loyalty program management and marketing
Creates actionable insights from both customer and business data
AI/ML-powered 'nudges' feature gives marketers prescriptive advice on program optimization and campaign management
Deep and broad technical expertise

Cons:

Limited published privacy thought leadership relative to others in evaluation
Planned enhancements are more tactical, focusing on industry readiness, marketer usability, and marketing planning rather than strategic customer experience vision

Epsilon - Leaders

Pros:

Feature-rich technology and well-resourced supporting services
Bridges marketing technology with agency expertise through Publicis Groupe acquisition
Privacy-focused expertise in stringing together customer data from a variety of sources
Robust preference management capabilities including zero-party data collection and activation
Strong program optimization capabilities
High level of business acumen and breadth of resources through related Publicis agencies
Seasoned loyalty and technology experts across a variety of industries

Cons:

Lacks advanced automated insights for loyalty program optimization
Limited automated messages to marketers about promotional performance improvements

Kobie - Leaders

Pros:

Deep loyalty expertise with full suite of technical and strategic services
Clear vision grounded in building loyalty across the customer lifecycle
Strategic preparedness for emerging trends like Web3 and NFTs
Strong program structure and loyalty measurement capabilities
Proprietary Emotional Loyalty Scoring (ELS) methodology for personalization based on emotional attachment
Excels at measuring program KPIs with benchmarks for tracking performance
High customer retention rates
Visionary thinking and strategic services

Cons:

Revenue growth rates are lower than the competitive set
Over 95% of current clients are based in North America with limited global presence
Public-facing point of view on consumer privacy and supporting thought leadership are less clear than others evaluated

Bond Brand Loyalty - Strong Performers

Pros:

Marketing expertise and broad array of supporting products and services
Marketing consulting capabilities
On-par loyalty program management and optimization
Solid KPI and emotional loyalty measurement
Collaborative work environment praised by customers

Cons:

Technology lags in scalability
Vague product vision fails to address current brand challenges and future needs
Lags in member engagement measurement
Minimal public-facing thought leadership on privacy
Rated below average on ability to scale customer database, cost of new features, and R&D
Roadmap does not address member engagement optimization and coordinating loyalty activities

Comarch - Strong Performers

Pros:

Globalizes loyalty programs effectively
Advanced member profile management and fraud prevention capabilities
Platform designed to enable complex member profile structures
Leverages AI to automatically alert marketers to suspicious behaviors
Solid program KPI measurement
Strong technical services
Rich partner ecosystem
Team's work ethic and partnership in technical and strategic endeavors

Cons:

Lags in measurement capabilities
Offers few metrics to track emotional loyalty and member engagement
Below par on several program management capabilities including analytics for customer's propensity to refer
Outsources marketing strategy services

Oracle - Strong Performers

Pros:

Solid technology capabilities for setting up and managing a loyalty program
Excels in loyalty marketing coordination and fraud management
Pre-built integrations with marketing resource management (MRM) tools
Advanced budgeting features
Differentiated roadmap focused on hyperpersonalization, industry-specific solutions, and diversifying rewards mix
Knowledge and stability of the CrowdTwist team
Global technology company with broad functionality

Cons:

Limited modularity - few capabilities are standalone
Does not enable self-service for clients to modify program structures
Lagged in company performance relative to other vendors
Strategic shift away from selling marketing technology broadly

Salesforce - Strong Performers

Pros:

Strongest privacy capabilities in evaluation with industry-leading strategy
Consent Data Model for management is a clear differentiator
Continually maturing platform
Inherently modular platform design
Integration with larger Salesforce marketing ecosystem

Cons:

Still catching up with competitors - launched MVP in early 2021
Lags in rewards and benefits management
Limited emotional loyalty measurement
Commercial model limited to three pricing tiers
Reference customers cite challenging integrations and need for more simplified turnkey solutions
Planned enhancements fail to address weaker areas like enhanced rewards options

Tenerity - Strong Performers

Pros:

Strong modular approach with seven standalone modules
Market-leading technology approach enabling brands to buy only needed components
Designed to be easily integrated with existing marketing and commerce systems
Robust technology partner ecosystem including blockchain and NFT vendors
Effective content management capabilities
Robust analytics supported by AI and ML
Enables no-code data model changes
Differentiated roadmap with Web3, enriched gamification, and community offerings

Cons:

Lags in loyalty program management
Points bank functionality was sold as part of cxLoyalty sale (rebuild on roadmap for 2023)
Below par program management capabilities
No evidence of strong fraud management capabilities
Lags the competitive set in supporting marketing services

Annex Cloud - Contenders

Pros:

Solid program management and measurement capabilities
Particularly strong in fraud management and referral programs
Solid partner ecosystem
Flexibility of the platform praised by customers
Clear list of planned enhancements including zero-party data collection and personalization

Cons:

Strategy and product vision currently in flux due to new investment and CEO
Client retention rate was low relative to competitive set
Below-par member preference management
Limited technology to support actionable insights
Privacy capabilities primarily compliance-focused with lack of public-facing thought leadership
Customers desire better communications around vision and roadmap
Need for improvement in leveraging past learnings in engagement delivery

Mastercard - Contenders

Pros:

Solid loyalty optimization capabilities
Sound data management and program optimization capabilities
Ability to support brands with multiple geographies
Vision focused on helping brands forge stronger, more profitable consumer relationships
Aligned roadmap with improvements to analytics, personalization, and marketer experience
Integration with other Mastercard offerings including Test & Learn and Pay with Rewards
Partnership with Amperity for CDP functionality
Acquisition of Dynamic Yield for personalization and decisioning

Cons:

Lags in emotional loyalty measurement
Loyalty marketing capabilities lag the competitive set, particularly in content management and overall marketing coordination
Minimal evidence of improvement in emotional loyalty measurement since last evaluation
Minimal evidence of user community engagement focused on loyalty

Merkle - Contenders

Pros:

Excels in emotional loyalty measurement
Robust member profiles and data management capabilities
Privacy thought leadership
Integration with Merkle's identity resolution solution
Leverages Adobe and Salesforce platforms
Broad marketing services and expertise across industries
Part of dentsu agency network providing industry and marketing experience

Cons:

Lags in marketing coordination
Currently lacks proactive notifications of potential fraud
Would benefit from integration with MRM vendor for loyalty marketing coordination
Singular pricing model lacks flexibility of competitors
Limited services partnerships as provides in-house marketing services

Punchh - Contenders

Pros:

Excels in restaurant loyalty expertise
High customer retention rates
One of the highest revenue growth rates in evaluation
Strong loyalty marketing capabilities including support for restaurant-specific channels
Intuitive UX
Good supporting services including UX design and development for mobile loyalty apps
Specialized industry expertise for QSRs and restaurants

Cons:

Lags in overall functionality
Generic vision for omnichannel loyalty-based engagement
Limited planned enhancements
Roadmap lacks focus on critical market trends such as privacy, zero-party data, and communities
Below par in member data management
Lacks automated messaging for potential fraud
Limited AI-based insights to marketers
Limited experiential rewards support
Customers expressed frustration with sluggish platform evolution and inability to scale with client growth

FAQs

Q: Which vendors are Leaders in 2023?

A: Capillary Technologies, Epsilon, Kobie

Q: What does "Leader" mean in Forrester Wave terms?

A: Leaders in the Forrester Wave evaluation are vendors that excel in both their current offering and strategy. They have strong technical capabilities across loyalty program management, member data management, loyalty marketing, program optimization, and measurement. Leaders demonstrate a clear and compelling product vision aligned with market trends, have well-resourced supporting services, robust partner ecosystems, and strong roadmaps for future enhancements. These vendors typically show high customer retention rates, strong reference customer feedback, and the ability to support brands across multiple industries and geographies. Leaders set the standard for the market and are best positioned to help B2C marketing professionals build profitable loyalty programs that engage customers.

Q: How do I interpret a Forrester Wave?

A: https://www.forrester.com/policies/forrester-wave-methodology/

Report:

Top Vendor Products for Loyalty Technology Solutions in 2023

Loyalty Technology Solutions Vendor Product Comparisons 2023

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FAQs

Q: Which vendors are Leaders in 2023?

Q: What does "Leader" mean in Forrester Wave terms?

Q: How do I interpret a Forrester Wave?

Reference