The Loyalty Switch – A Case Study On Innovating at The Pump

Written by Joel Mohan

June 18, 2020

The Loyalty Switch – A Case Study On Innovating at The Pump 

As more organizations look to enhance reward programs with new functionality, new programs and partners, there is a big need to have flexibility, speed and efficiency to keep up. With Velocity’s Loyalty’s Switch, it provides just that.

A global fuel retailer partnered with Velocity Logic who worked to create complete flexibility in loyalty in order to support multiple reward programs and partners. The solution encompasses all the company’s locations in the US and provides speed to market on new programs, cost saving on implementation, a single consumer experience, and additional future revenue opportunities. 

Challenge

When working with the retailer, we found many issues that resemble many companies across all industries: 

  • Time to market was extremely long and costly 
  • Total cost to change would be significant
  • The point of sale systems were a bottleneck due to the majority of the rewards occurring in real time
  • Desire to innovate with multiple partners, programs, and features
  • Increase security of loyalty reward processing

Goals

With Velocity, the relationship was to slowly build a new infrastructure that included more technology ownership for the retailer and the flexibility to work with partners that fit its strategy around innovation, speed, a/b testing, and cost.  

What’s the Solution

  • Velocity developed a cloud based software, called the  “Loyalty Switch”, built using standard fuel communications, that sits above site (certified with Verifone) and is responsible for all loyalty transactions (regardless of provider). 
  • Transactions from the site would route to the Loyalty Switch, be interrogated, and then routed to the relevant organization for loyalty processing. This could be for any program (local, national, grocer, etc.) as long as the rules are set at the Loyalty Switch level.  We think of it as a hub for all things loyalty for the retailer.
  • From a customer experience standpoint, the Switch allows the retailer to remove all the prompts at site because the Switch would now make all routing decisions above site. 
  • The Loyalty Switch manages multiple partners and processes over 150 transactions per second, is PCI compliant, enabled with SSL, and a source of truth for the retailer.

Diagram

What’s the impact

  • Flexibility, cost, speed to market, and innovation are key ingredients for the retailer to push and grow its customer base in the future the Loyalty Switch has provided the infrastructure for them to succeed.
  • Timelines and costs are reduced by the entrance of partners like Velocity and ability to route traffic in different directions.
  • Today, the Loyalty Switch is an integral part of the retailers architecture and helps manage to enable any/all new programs.

What’s next

As more programs and partners enter the equation, the addition of aggregating multiple rewards from different programs is on the horizon and the next evolution of the Loyalty Switch. Additionally, as large fuel retailers work with their franchisees, the Switch can play a role to bring convenience store loyalty into the mix with a fuel in a single experience while still funded by different parties.

For more information, contact vik mehta @ [email protected] or read more about the Loyalty Switch here

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