Loyalty Program Management Software Category Procurement Intelligence Report

The market for End User Software and Hardware and its sub-segments such as Loyalty Program Management Software are at an interesting intersection. Buyers are showing an inclination to onboard suppliers whose offerings span beyond Loyalty Program Management Software. The practice brings in several advantages such as rationalization of supplier base, economies of scale and reduced category management cost.

The ecosystem of Loyalty Program Management Software is part of an industry which is developing a host of new transformative technologies. Billions of dollars are being invested into this industry, and companies are in cutthroat competition to discover the next game changing technology, hardware, software, and services.

The supply market has undergone several structural changes including introduction of several new vendors every year, M&As and vertical integration efforts of suppliers. This has resulted in some issues such as erosion of previously established supplier relationships but has also opened new opportunities to onboard new suppliers that offer a solution with better fitment or a wider range of offerings in .

Trends like these and many others discussed in this report are necessitating a relook at the way Loyalty Program Management Software is procured and the procurement cost saving opportunities that exist.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Loyalty Program Management Software. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Prior to the commencement of contract-related discussions, buyers must ensure that they have clearly identified and listed down potential levers, such as duration of contract, resources required, space limits if relevant, terms of payment, expected resolution time, delivery point.

Needs of buyers can vary depending on the industry where buyers operate. For instance, buyers from the financial services industry give high importance to regulatory compliance and data security, whereas buyers from the e-commerce industry prioritize high throughput, low response time, and high scalability. Hence, service providers with a strong knowledge of the security, compliance, and governance needs of buyers' industries and a proven track record of performance with respect to these aspects should be prioritized.

Buyers should ask for a detailed account of the data protection capabilities of the supplier. In addition, buyers should also enquire regarding the redundancies available during instances of outages or disruptions. While some providers can provide backup, others may have limited capabilities in hardware redundancy.

Loyalty Program Management Software procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Loyalty Program Management Software procurement. Some examples include: