Recognize the Need for Integration
Learning Objectives
After completing this unit, you’ll be able to:
- Describe the purpose of using APIs.
- Explore case studies with different API requirements.
- Explain the importance of flexible API integrations.
Introduction to APIs
Businesses rely on loyalty programs to drive customer retention, improve revenue, and enhance customer loyalty. The program’s success hinges on providing a smooth and unified customer experience across all touchpoints. To achieve this, businesses must integrate the loyalty program into their existing systems using an API (application programming interface).
APIs work as a delivery mechanism: They deliver a user request to the system and bring back a response from the system. For example, in a loyalty program, a customer makes a purchase and receives a reward. An API collects information about the purchase, analyzes the member’s eligibility for a reward based on business rules, and then rewards the customer.
While there’s a lot that you can do with APIs, one of its primary uses is to integrate software with external systems. As a developer, you can use Loyalty Management APIs to integrate your loyalty programs with ecommerce websites, mobile applications, and point of sale (POS) solutions. These integrations allow loyalty programs to provide a consistent and rewarding customer experience. In this module, you find out how APIs help companies and explore the different API solutions available for loyalty integrations.
Let’s check out some examples of loyalty program integrations across industries.
Business Case Studies
Here are a few case studies that illustrate the value of loyalty API integrations.
Retail
A retail company with several stores runs an ecommerce website and a loyalty program. It recently partnered with a logistics company to fulfill its online deliveries. It wants to facilitate communication and data exchange between its loyalty program platform and the logistics partner's systems.
After some key API integrations, here’s what’s been set up.
- To verify membership and access member-specific benefits, the program shares data, such as membership IDs or loyalty points, with the logistics partner.
- To provide special shipping rates or services to loyalty program members, the program gets shipping quotes and labels from the logistics partner's system. The program also receives shipment status updates.
- To ensure accurate order fulfillment, the logistics partner gets real-time access to inventory information.
Airlines
To keep up with the increasingly competitive industry, an airline realizes the importance of delivering more than excellent in-flight experiences. It sets up a loyalty program and partners with a customer service agency to provide exceptional customer service. The airline needs various APIs to facilitate information exchange between the program and customer service.
To provide a seamless customer experience, the two companies set up API integrations for many functions.
- For personalized customer interactions, customer care agents access customer data such as passenger profiles, travel history, and loyalty program membership details.
- Customer care agents receive real-time updates on flight status, delays, cancellations, and gate information.
- To assist with payments, refunds, or billing inquiries, the customer service platform integrates with the airline's payment gateway, ensuring secure transaction processing.
Restaurant
A local restaurant wants to preserve its loyal customer base and attract new diners. It decides to implement a loyalty program to improve customer retention and experience.
The restaurant integrates its loyalty program with different systems to streamline its operations.
- The program captures data from POS systems to track customer purchases, spending, and items ordered to update loyalty points and apply discounts and rewards.
- The restaurant offers delivery services through third-party providers and loyalty program members get points for orders placed through these platforms.
- The loyalty program includes location-based offers. When customers are near a restaurant, the program triggers relevant promotions.
The developers at each company work closely to define the precise API requirements and ensure a successful integration.
Need for Flexible Integration
Because business requirements are unique, customizable APIs help developers extend or modify functionalities. Here are a few reasons why flexible integrations are important.
As developers, you play a crucial role in API integrations because you’re responsible for designing, building, and maintaining the connections between different software systems.
Let’s explore how a sneakers manufacturer sets up different loyalty integrations.
Cloud Kicks Gets Integrated
Cloud Kicks is a manufacturer of stylish and comfortable custom sneakers. It runs a successful loyalty program called Cloud Kicks Inner Circle that’s built on Salesforce Loyalty Management, and offers loyalty experiences in its stores and through its ecommerce and mobile channels. Mary Levy, the loyalty program manager, is finding it difficult to ensure consistent loyalty member experiences across channels because of varying system-to-system communication. She works with Eugene Lee, the developer at Cloud Kicks, to connect the loyalty program to all the front-end and third-party applications.
After collaborating with the stakeholders to understand the specific requirements of the integration, here’s what Eugene has gathered.
- Cloud Kicks stores require POS integration with Loyalty Management.
- Cloud Kicks runs an Experience site and an external ecommerce site.
- Both sites need integration with Loyalty Management for everyday tasks such as enrollment, crediting points, and debiting points.
In the next unit, you follow Eugene as he explores the loyalty APIs that best match the integration needs.