Loyalty management system (LMS): what it is, what it includes and what to require
Resources · Concept
A loyalty management system (LMS) is the software that runs a loyalty program end to end: members, points or miles earning, tiers, promotions, redemption, partners and the points liability. It is not a CRM or a CDP, although it connects to both. Qurable is an AI-native LMS with its own Customer Data Platform.
- MembersEnrollment and ID
- PointsEarn and burn
- TiersQualification
CamilaGold member · 2,480 ptsThe modules- PromotionsDecided at payment
- PartnersGive and accept points
- LiabilityWith every transaction
- < 50 msMember identified
- ~150 msPromotion applied
- < 1 sPoints and liability recorded
Banks and fintechs, in production
Our banking and fintech clients already deliver cashback at payment with Qurable.
Pomelo, Santander Peru, Banisi and Konfío, among others. With Pomelo, banks, fintechs and companies that issue cards turn on loyalty and cashback without a separate technical project.
- ~150 msReward decisionInside the authorization
- < 50 msMember identificationp95, server-side
- 99.5%SLACommitted availability
- 18MMembersIn programs running on Qurable
Key takeaways
- An LMS runs the program: members, points or miles, tiers, promotions, redemption, partners and liability.
- It does not replace the CRM or the CDP: it uses their data to decide and sends every program event back to them.
- For an enterprise program, require real time, an auditable ledger, multiple countries and currencies, and an API.
The difference
LMS, CDP or CRM: what each one does.
All three handle customer data, but with different goals. The confusion shows up in RFPs, when one is asked for the capabilities of another.
| CRM or CDP | Loyalty management system (LMS) | |
|---|---|---|
| What it is for | The CRM manages the commercial relationship and service; the CDP unifies data to segment | Runs the loyalty program and its economics |
| What it records | Contacts, cases, interactions and behavioral events | Points or miles, tiers, redemptions, promotions and the liability of every transaction |
| Where it acts | In commercial management and in later campaigns | At payment: it identifies the member and applies the benefit on the same receipt |
| Accounting | Does not account for points | Ledger with lots, expirations and liability for finance |
| Partners | Out of scope | Partners that give and accept points, each at its own rate |
The modules
What a complete LMS includes.
The modules an enterprise loyalty RFP should cover.
Points, miles or cashback
Earning rules by purchase, channel, product or event.
Tiers
Qualification, benefits by tier and requalification.
Missions and gamification
Challenges, badges and games that shape behavior.
Promotion engine
Discounts, coupons and bonus points decided at payment, complex promotions included.
Promotion governance
Priorities, exclusions, caps and approval.
Partners
Partners that give and accept points, at their own rate.
Auditable ledger
Every transaction with double entry, lots and expirations.
Points liability
By currency, country and store, at any moment.
Reversals
Returns and adjustments, with approval for manual ones.
Member profile
One record with the member’s full program history.
API and webhooks
For the app, ecommerce, POS and CRM.
Multiple countries
Currencies, rules and liability separated by country.
What to require
What to ask for in an LMS RFP.
The questions that separate an enterprise LMS from a points system.
| What to ask for | Why it matters |
|---|---|
| Benefit at payment | The promotion or discount is applied on the same receipt, not afterwards. |
| One balance | The same balance in the app, at the POS and in customer service. |
| Double-entry ledger | To reconcile the liability and audit every transaction. |
| Expiration by lot | FIFO, FEFO or LIFO, depending on the program. |
| Percentiles in production | Latencies at p95 and real peaks, not lab averages. |
| API and SDKs | To use the program in your own channels. |
| Webhook events | So the CRM and the CDP receive every program event. |
| Multiple countries and currencies | One program with rules and liability separated by country. |
| A team in the region | Support in your language and your time zone. |
By industry
An LMS for your industry.
The core is the same; the rules and channels change.
Airlines
Miles, tiers, partners and miles plus cash, like SKY Plus.
Restaurants
Complex promotions in the app, at the POS and at the kiosk, like MostaClub.
Banks and fintech
Points and cashback inside the card payment.
Retail
One program for several brands, with partners, like TRIBU.
Fuel stations
Real-time promotions by bank and card, like Shell Box.
With Qurable
An AI-native LMS with its own CDP.
Qurable is the loyalty management system behind programs with 18 million members in more than 6 Latin American markets.
Promotions at payment
Decides and applies the promotion in ~150 ms, within the authorization.
See the promotion enginePoints ledger
Double entry, lots, expirations and real-time liability.
See the points ledgerIts own Customer Data Platform
One profile per member, recognized in store, in the app and in ecommerce.
See the Customer Data PlatformAPI-first and headless
A public API with authorized credentials, signed webhooks and SDKs.
See API-first loyalty
Questions
What teams ask about an LMS.
Short answers for loyalty, technology, finance and procurement teams.
It is the software that runs a loyalty program end to end: members, points or miles earning, tiers, promotions, redemption, partners and the points liability.
Loyalty management system. The acronym is also used for learning management system, the training platforms, so it is worth spelling it out in an RFP.
The LMS runs the program and its economics: points, tiers, promotions, redemption and liability. The CDP unifies customer data to segment and activate. They complement each other: the LMS uses the profile to decide and sends every program event back. Qurable brings both on the same platform.
No. The CRM manages the commercial relationship and service; the LMS runs the program. They connect through the API and webhooks, and the CRM receives every member transaction. Qurable integrates with Salesforce and Microsoft Dynamics.
Points or miles, tiers, a promotion engine with governance (priorities, exclusions and caps), partners, redemption, a ledger with liability and expirations, the member profile, an API and webhooks, and support for multiple countries and currencies.
With Qurable, the first program goes live in 1 to 3 months, in stages. A full migration depends on the program and its integrations.
Yes. Qurable is an AI-native loyalty management system (LMS) with its own Customer Data Platform. Programs such as SKY Airline’s SKY Plus, Mostaza’s MostaClub and Soy Rappi run on Qurable, with 18 million members in more than 6 markets.
Last reviewed
Go deeper
Keep reading to choose an LMS.
Guides to evaluate and compare platforms.
- ResourceLoyalty RFI, RFP and RFQ checklist
The questions to evaluate platforms, area by area.
- ConceptAPI-first, headless loyalty
What to ask of an LMS API.
- ResourceAirline loyalty program
Miles, tiers and partners in an airline LMS.
- ResourceEnterprise loyalty platform
What to require for a multi-country program.
- ComparisonQurable vs Salesforce Loyalty Management
Two LMS, side by side.
See a complete LMS with your program.
In 45 minutes we walk through a program end to end: members, promotions, redemption and liability, with a case from your industry.