Brands seeking to manage and optimize customer loyalty have several options to choose from. Among the most prominent are Software as a Service (SaaS) providers and loyalty agencies, which address the need for technology or strategy – or in the case of Kobie – both. Our unique partnership model referred to as “SaaS Plus” is challenging the notion that brands need to choose between self-service and strategic partnership. Named the only Leader in Services and Technology by Forrester, we’re breaking down the differences between these options to help brands understand the implications.
SaaS Providers: The Technology Model
SaaS providers are the go-to for companies looking for ready-to-use platforms. They typically offer cloud-based software solutions that businesses can access over the internet, eliminating the need for in-house servers and extensive IT support.
While some key advantages to SaaS include self-service, accessibility and lower upfront costs, most SaaS providers focus on enabling businesses to use their technology effectively through customer success initiatives. This approach primarily ensures that customers can navigate and utilize the platform, but often stops short of driving growth through strategic program management and optimization.
Even with advancements in AI upping the SaaS ante, brands should consider if a SaaS provider aligns to the way you approach loyalty. If you view loyalty as more than a utility, as a driver of long-term brand growth, ask your SaaS provider how they will evaluate your program performance, what liability is associated with the decisions you make, how they will align with your roadmap, and what shared success looks like.
Kobie: The Partnership Model
In contrast to a technology model, the focus of a partnership model is an emphasis on collaboration, shared risk, and roadmap alignment. Kobie’s model provides the same level of self-service as a pure SaaS, but with several key differences:
- A focus on program optimization: While technology models focus on customer success, or how you use technology to enable your existing strategy, a partnership model goes beyond to enable and measure optimization over time as your strategy evolves.
- Full control with a safety net: Brands can leverage Kobie’s technology as self-serve, but a partnership model ensures a safety net that mitigates the potential risks and maximizes the rewards of doing it yourself.
- A transparent view of total cost: “SaaS Plus” pricing assumes an all-inclusive level of support that keeps loyalty programs optimized vs. just running. This eliminates nickel and diming and gives transparency into total cost of ownership.
- Expertise for long-term growth: In a partnership model, brands benefit from shared resources and expertise, giving you access to critical competitive benchmarks, market trends and analysis that help drive ongoing loyalty strategy.
In essence, a partnership model is about human and organizational collaboration, while a technology model is centered on leveraging technological advancements to achieve business objectives.
While traditional SaaS providers offer robust technology, and loyalty agencies provide strategic insights, a partnership model combines both, delivering a comprehensive solution designed for growth and differentiation. Gone are the days of forcing choice between the two or having to sacrifice control and cost to get a holistic solution. Reach out to Kobie today to learn more!
