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If you're struggling with customer retention, it's time to consider loyalty reward program software. It automates your entire rewards system from points tracking to redemption saving time while keeping customers coming back.

Top Benefits:

Increases repeat purchases and customer lifetime value

Offers points, tiers, referral, and VIP reward structures

Provides real-time analytics to track performance

Integrates with POS, CRM, and e-commerce platforms

Sends automated notifications to keep customers engaged

Even small businesses can afford it today most platforms offer easy setup with no coding required.

Let's talk about something every business struggles with — keeping customers coming back.

I recently came across some great insights on loyalty program software and wanted to share:

✅ It automates your entire rewards system ✅ Tracks customer behaviour and purchase history ✅ Sends personalised offers at the right time ✅ Works across online, offline, and mobile channels ✅ Turns one-time buyers into repeat customers

The best part? You don't need a huge budget to get started. Even small businesses are seeing massive results with the right platform.

If you're serious about growing your brand through customer loyalty, this article is worth reading: 🔗 https://www.cfcs.co.in/blog/loyalty-program-software

Loyalty program software is transforming how businesses engage with customers. This in-depth blog covers everything you need to know — from automated point tracking and VIP tiers to gamification, referral rewards, and real-time analytics. If you're looking to improve customer retention and grow your revenue, this is your go-to resource.

In today’s hyper-competitive marketplace, acquiring a new customer costs five times more than retaining an existing one. That’s why businesses of all sizes — from local retailers to global enterprises — are turning to loyalty program software to build lasting relationships with their customers. But what exactly is loyalty program software, and why is it becoming an indispensable tool for modern businesses?

What Is Loyalty Program Software?

Loyalty program software is a digital platform that helps businesses design, manage, and optimize customer reward programs. It automates the entire loyalty lifecycle — from enrolling members and tracking points to distributing rewards and analyzing customer behavior. Gone are the days of paper punch cards and manual record-keeping. Today’s loyalty program solutions are intelligent, data-driven, and deeply personalized.

Why Your Business Needs a Loyalty Program

Customer loyalty isn’t just about repeat purchases — it’s about building an emotional connection between your brand and your audience. When customers earn rewards, they become more likely to return, reducing your spending on advertising and marketing. A loyalty program also gives you precious insights into customer buying patterns, helping you tailor products and services to their needs. 

The numbers speak for themselves: 58% of consumers spend more with brands that offer loyalty programs, and members of loyalty programs generate 12–18% more incremental revenue growth per year than non-members. Simply put, a well-executed loyalty strategy is one of the highest-ROI investments a business can make.

Key Features of Loyalty Program Software

Not all loyalty platforms are created equal. The best solutions offer a robust set of features that go beyond basic point accumulation:

Points & Rewards Management — The foundation of any loyalty program. Customers earn points for purchases, referrals, or social actions, and redeem them for discounts, gifts, or exclusive perks.

Customer Segmentation — Good loyalty management software helps in targeting different customer groups effectively, allowing you to send the right offer to the right person at the right time.

AI-Driven Personalization — Advanced platforms customize offers, rewards, and communications at an individual level , making every customer feel uniquely valued rather than part of a generic campaign.

Omnichannel Capabilities — Shoppers expect programs that feel personal and consistent, whether they shop online or in-store. The best loyalty software connects your e-commerce, mobile app, and physical store into a seamless experience.

Gamification Tools — Badges, challenges, and interactive engagement mechanics Kognitiv make loyalty programs more engaging and fun, encouraging customers to participate more actively.

Analytics & Reporting — Analytics and reporting provide insights into customer behavior and program performance, empowering businesses to refine their strategy continuously.

Tier Management — Rewarding your most loyal customers with escalating benefits keeps high-value members motivated to keep spending and engaging with your brand.

Loyalty Programs Are No Longer Just Transactional

One of the biggest shifts in loyalty marketing is the move from transactional to emotional loyalty. Businesses are no longer sticking to basic points-for-purchases models — they’re investing in personalized experiences that make customers feel valued and engaged. 

Modern loyalty program software supports experiential rewards, influencer loyalty, partner coalitions, and gamified challenges — all designed to foster a deeper, longer-lasting bond with your brand.

Choosing the Right Loyalty Program Software

Selecting the right platform depends on your business size, industry, and goals. Here are a few things to keep in mind:

Integration: The software must connect smoothly with your existing CRM, POS, and e-commerce platforms.

Scalability: Choose a solution that can grow as your customer base expands.

Ease of Use: The best loyalty app is the one you’ll actually use Stampme — look for an intuitive interface for both your team and your customers.

Mobile Compatibility: With most customers shopping on smartphones, mobile-friendly loyalty programs are no longer optional.

The Bottom Line

Investing in loyalty program software is no longer a luxury reserved for large enterprises. With consumers becoming more selective and brand loyalty increasingly crucial, businesses need to offer rewards and incentives that encourage repeat purchases, improve customer retention, and drive long-term engagement. 

If you're not running a loyalty program yet, you're leaving money on the table.

A loyalty program rewards customers with points, cashback, or exclusive perks every time they buy from you. The result? They keep coming back, spend more, and even refer others — all without you spending heavily on ads.

Quick benefits:

Higher customer retention

More repeat purchases

Free word-of-mouth referrals

Stronger brand loyalty

Better customer insights

Whether you're a small shop or a growing enterprise, a loyalty program is one of the smartest investments you can make for long-term revenue.

A customer loyalty program is a structured reward system that gives customers points, cashback, discounts, or exclusive perks for repeat purchases. This in-depth guide from CFCS Cloud Solutions breaks down the 8 major benefits of loyalty programs from reducing churn and boosting sales to generating word-of-mouth referrals. Whether you're a small business or a growing enterprise, implementing a loyalty program is one of the smartest moves you can make. For more info:

If you're struggling with customer retention, a loyalty program might be your best move. Rewarding customers with points, cashback, or exclusive discounts keeps them coming back — and reduces the need to constantly chase new buyers.

Key benefits at a glance:

Reduces customer churn

Increases repeat purchases

Boosts word-of-mouth referrals

Builds long-term brand trust

Even small businesses can launch a simple points-based or cashback program without a huge budget — the right software makes it easy to manage.

In today’s competitive market, businesses are constantly looking for ways to retain customers and increase repeat purchases. One of the most effective strategies to achieve this is implementing a loyalty program. A loyalty program is not just about offering discounts — it’s about building long-term relationships, enhancing customer experience, and driving sustainable business growth.

In this article, we will explore what a loyalty program is, how it works, its benefits, types, and how businesses can create a successful one.

What is a Loyalty Program?

A loyalty program is a structured marketing strategy that rewards customers for their repeat purchases or engagement with a brand. These rewards can include points, cashback, discounts, exclusive deals, or special perks.

The main objective of a loyalty program is to encourage customers to keep choosing your brand over competitors. By offering incentives, businesses can motivate customers to return more frequently and spend more over time.

Why Loyalty Programs Are Important

Customer retention has become more valuable than ever. Studies show that retaining existing customers is significantly more cost-effective than acquiring new ones, and loyal customers tend to spend more.

A well-designed loyalty program ensures that customers feel valued and appreciated, which strengthens their emotional connection with the brand. When customers perceive value beyond just the product, they are more likely to stay loyal.

Key Benefits of a Loyalty Program

1. Improves Customer Retention

Loyalty programs encourage repeat purchases by rewarding customers for staying engaged. Customers are less likely to switch to competitors when they know they will receive ongoing benefits.

2. Increases Customer Lifetime Value (CLV)

When customers repeatedly purchase from a brand, their lifetime value increases. Loyalty programs play a major role in boosting long-term revenue by encouraging consistent buying behavior.

3. Boosts Revenue and Sales

Loyal customers tend to spend more and purchase more frequently. This directly impacts a company’s revenue growth and profitability.

4. Strengthens Customer Relationships

By rewarding customers, businesses create a sense of appreciation and trust. This helps build stronger, long-lasting relationships.

5. Encourages Word-of-Mouth Marketing

Satisfied customers often recommend brands to others. Loyalty programs can amplify this effect by incentivizing referrals.

6. Provides Valuable Customer Insights

Loyalty programs generate data on customer behavior, preferences, and buying patterns. Businesses can use this data to personalize marketing strategies and improve customer experience.

How a Loyalty Program Works

A typical loyalty program operates on a simple principle: reward customers for their actions. These actions may include:

Making purchases

Referring friends

Writing reviews

Engaging with the brand

Customers earn points or rewards for these activities, which they can later redeem for discounts, gifts, or exclusive benefits. This creates a cycle of engagement that keeps customers coming back.

Types of Loyalty Programs

Different businesses use different types of loyalty programs depending on their goals and target audience:

1. Points-Based Programs

Customers earn points for every purchase and redeem them later for rewards.

2. Tier-Based Programs

Customers unlock higher levels of benefits as they spend more, such as VIP perks or exclusive access.

3. Cashback Programs

Customers receive a percentage of their spending back as cashback or credits.

4. Subscription Programs

Customers pay a fee to access premium benefits like free delivery or exclusive discounts.

5. Referral Programs

Customers earn rewards for bringing in new customers.

6. Gamified Loyalty Programs

Interactive elements like spin-to-win, streak rewards, or challenges keep customers engaged and excited.

How to Create a Successful Loyalty Program

Designing an effective loyalty program requires careful planning and customer understanding. Here are key steps:

1. Understand Your Customers

Analyze customer behavior, preferences, and buying patterns to design rewards that truly matter.

2. Offer Valuable and Relevant Rewards

Ensure rewards are attractive and easy to redeem. Personalized rewards create stronger emotional connections.

3. Keep It Simple

A complex loyalty program can discourage participation. Make it easy to join, earn, and redeem rewards.

4. Use Personalization

Leverage customer data to offer customized deals, birthday rewards, and tailored recommendations.

5. Track Performance and Optimize

Monitor key metrics such as repeat purchase rate, redemption rate, and customer lifetime value. Continuously improve the program based on insights.

Examples of Successful Loyalty Programs

Many global brands have successfully implemented loyalty programs to drive customer engagement:

Coffee chains offering free drinks after a certain number of purchases

Airlines providing miles and upgrades

E-commerce platforms offering cashback and exclusive deals

These programs work because they combine value, convenience, and personalization — key elements of customer loyalty.

Challenges in Loyalty Programs

While loyalty programs offer many benefits, they must be executed correctly. Poorly designed programs can fail due to:

Lack of personalization

Complicated reward structures

Irrelevant offers

Poor integration with customer experience

To succeed, businesses must treat loyalty programs as a core strategy rather than an add-on.

Conclusion

A loyalty program is one of the most powerful tools for improving customer retention, increasing sales, and building long-term relationships. By rewarding customers for their loyalty, businesses can create a win-win situation — customers feel valued, and brands enjoy higher engagement and revenue.

I’ve been researching ways to improve customer retention, and it seems like implementing a loyalty program is one of the most effective approaches today. From point-based rewards to tiered memberships, there are so many options available.

I recently came across this detailed guide on loyalty programs that explains different strategies and benefits really well: https://www.cfcs.co.in/blog/loyalty-program

If you're looking to improve customer retention and increase repeat purchases, investing in the right loyalty reward program software can make a huge difference.

Modern businesses are no longer relying on simple discount strategies. Instead, they’re adopting smart loyalty systems that reward customers instantly and create long-term engagement. A good loyalty platform helps you automate rewards, track customer behavior, and run highly targeted campaigns all from one place.

If you're not running a loyalty program yet, you're leaving serious revenue on the table.

A loyalty program is a structured system that rewards customers for repeat purchases — through points, cashback, discounts, or exclusive perks. And the results speak for themselves: loyal customers spend more, refer more, and churn far less.

Here's why it matters for your business:

✅ Boosts Customer Retention — Customers who earn rewards are far less likely to switch to a competitor.

✅ Increases Repeat Sales — When buyers know they'll earn points on every purchase, they keep coming back.

✅ Drives Word-of-Mouth — Happy, rewarded customers naturally recommend your brand to friends and family.

✅ Grows Customer Lifetime Value — More frequent purchases over time means higher long-term revenue per customer.

✅ Builds Brand Identity — A well-crafted loyalty reward program sets you apart from competitors.

Whether you're a small business or an enterprise brand, a loyalty program isn't just a marketing tool — it's a relationship-building strategy.

Retaining a customer costs far less than acquiring a new one — yet most businesses still underinvest in retention strategies. In a marketplace where consumers have endless choices and shorter attention spans, brands that reward loyalty win. That is exactly where loyalty reward program software comes in.

Whether you are a growing startup or an established enterprise, the right loyalty platform can turn one-time buyers into repeat customers, and repeat customers into brand advocates. In 2026, this is not a strategy reserved for big brands. It is accessible, affordable, and highly effective for businesses of every size.

What Is Loyalty Reward Program Software?

Loyalty reward program software is a digital platform that helps businesses design, automate, and manage customer reward programs end to end. It handles everything — from enrolling customers and tracking their purchases to calculating reward points and delivering instant payouts.

Modern solutions go well beyond simple discount cards. Today's loyalty reward program software generates secure, encrypted QR codes with automatic expiration and one-time usage, stopping unauthorised use while guaranteeing every scan is authenticated, monitored, and linked to its original transaction. It can deliver cashback or rewards directly into a customer's bank account or UPI ID within seconds of a valid scan  making instant gratification a reality for every customer interaction.

Why Businesses Cannot Afford to Ignore Loyalty Programs

Consumer expectations have evolved dramatically. Customers want to feel valued, and they want rewards immediately — not after a week-long processing window.

Loyalty programs can boost customer retention, improve average sales value, and customer lifetime value. In 2025, the importance of loyalty programs is growing — 59% of people are more likely to sign up for a loyalty program than they were 12 months ago, rising to 71% and 72% among Gen Z and Millennial shoppers. Transparency Market Research

These numbers highlight a clear opportunity. Businesses that deploy loyalty reward program software are not just improving customer experience — they are directly improving revenue.

Key Features That Make a Loyalty Platform Effective

Not every loyalty tool delivers the same results. When choosing loyalty reward program software, prioritise these capabilities:

Secure QR Code Generation — The software should allow you to effortlessly create QR batches by campaigns, SKUs, locations, or product categories. You should be able to create personalised QR code rules including expiration dates, user limits, and geographic restrictions. 

Instant UPI & Bank Payouts — Delayed rewards kill engagement. The best platforms credit rewards to a customer's UPI ID or bank account within seconds, removing friction entirely.

Customisable Reward Structures — Flexible loyalty program structures with customisable reward amounts, earning thresholds, and personalised rules for different customer segments allow businesses to seamlessly align reward workflows with business objectives and engagement goals. http://

Real-Time Tracking and Analytics — Monitoring every interaction in real time — including scan timing, locations, users, and devices — along with comprehensive logs and detailed reports, helps unlock valuable insights into your campaign's success.

Omnichannel Accessibility — Seamless loyalty program access for both B2B and B2C customers across mobile apps, web, POS, QR codes, and SMS ensures consistent engagement at every touchpoint. 

AI-Powered Chatbot Support — An integrated chatbot provides instant support by answering customer queries, checking reward balances, and explaining program rules in real time, with multilingual support so businesses can assist customers in their preferred language. 

Types of Loyalty Programs You Can Run

Modern loyalty reward program software supports multiple program formats, allowing brands to choose what suits their audience best:

Point-Based Programs — Customers earn points for purchases, referrals, product registrations, reviews, and brand engagement. Points programs allow customers to earn through various activities beyond just spending — referring friends, writing reviews, or engaging on social media — and redeem them for discounts, free products, or experiential benefits. 

Cashback Programs — A cashback loyalty rewards program returns a portion of a customer's purchase as cashback, which they can redeem instantly or use for future purchases. Many Indian businesses now use this model through advanced loyalty reward program software. 

Lucky Draw Programs — Customers get a chance to win prizes when they make a purchase or participate in specific activities, adding an element of excitement that drives repeat engagement. 

Tiered Membership Programs — Customers progress through reward tiers, unlocking greater benefits as they spend more, encouraging long-term brand commitment.

How It Works — From Enrolment to Payout

The workflow is straightforward. A customer enrols into the loyalty program via web, app, QR scan, or in-store signup. Basic details such as mobile number, email ID, or customer IDs are captured to uniquely identify and link all future transactions and activities. 

Once enrolled, every qualifying action — a purchase, a referral, a review — is captured by the system and evaluated against predefined rules. Rewards are calculated and credited instantly. Starting with secure QR batches and ending with instant payouts, the entire process is automated, traceable, and scalable. 

LoyaltyNest by CFCS Cloud Solutions

For businesses looking for a reliable, feature-rich loyalty reward program software in India, LoyaltyNest by CFCS Cloud Solutions is a strong contender. Backed by 25 years of IT expertise, CFCS Cloud Solutions deploys customer loyalty software that instantly rewards customers through secure QR scanning with real-time payouts via UPI or bank for seamless engagement. 

LoyaltyNest is widely popular across India and internationally, with a strong presence in Malaysia, Taiwan, Singapore, Japan, Saudi Arabia, and Dubai, powered by continuously evolving, next-generation technology. 

From FMCG brands and retail chains to healthcare, fintech, and manufacturing — LoyaltyNest is built to scale across industries and customer segments with equal ease.

Conclusion

Customer loyalty is one of the most valuable assets a business can build. With the right loyalty reward program software, every transaction becomes a touchpoint to deepen that relationship — rewarding customers instantly, engaging them meaningfully, and keeping them coming back.

If your business is still handling customer complaints manually via spreadsheets or emails, you're losing both time and customers. A dedicated Complaint Management Software automates the entire complaint lifecycle from logging and assigning to resolving and collecting feedback.

CFCS's Frontizo is one such cloud-based solution that helps businesses manage service requests, track engineer assignments, send auto-feedback links, and generate real-time reports — all from a single platform.

It's ideal for mid to large-scale industries dealing with field operations, AMC, warranty, and preventive maintenance.

he automotive industry faces a unique challenge — customers make purchases infrequently, making loyalty hard to build. A strategically designed Automotive Loyalty Program bridges this gap by creating consistent touchpoints, personalized rewards, and meaningful engagement between brands and buyers.

This insightful blog by CFCS explores how automotive brands can leverage loyalty programs to: ✅ Boost repeat service visits ✅ Increase brand retention ✅ Drive service revenue ✅ Convert customers into brand ambassadors

Whether you're a car manufacturer, dealer, or aftermarket service provider — this is a must-read.

If you're running a retail or e-commerce business and still relying on manual discount cards or paper-based coupon systems, you're leaving serious money on the table. I recently came across a modern loyalty reward program software that completely changed how I think about customer retention.

The platform uses secure QR code scanning to instantly reward customers — no waiting, no complicated redemption process. As soon as a customer scans a QR code (which can be placed on product packaging, POS material, or inserts), the reward gets transferred directly to their UPI ID or bank account within seconds.

What I found particularly impressive:

Each QR code is one-time-use only — so no duplication or fraud

You can set custom rules for different customer segments (new buyers, loyal customers, etc.)

Real-time dashboard to track scans, locations, and devices

Works for both B2B and B2C businesses

If you're looking for a loyalty reward program software that is scalable, secure, and genuinely instant in payouts, I'd strongly recommend checking out what CFCS Cloud Solutions has built: 👉 https://www.cfcs.co.in/loyalty-reward-program-software.html

Why Your Business Needs a Smart Loyalty Reward Program Software in 2026

In today’s fiercely competitive marketplace, acquiring a new customer costs significantly more than retaining an existing one. Yet, many businesses still rely on outdated methods — paper-based punch cards, manual discount schemes, or one-size-fits-all promotions — to keep customers coming back. This is where modern loyalty reward program software changes the game entirely.

From retail chains and e-commerce brands to pharmacies and salons, businesses across every industry are now turning to intelligent, automated loyalty platforms to drive repeat purchases, deepen customer relationships, and fuel long-term growth.

What Is Loyalty Reward Program Software?

Loyalty reward program software is a digital platform that enables businesses to design, manage, and automate structured reward systems for their customers. Instead of offering generic discounts, the software allows brands to reward customers with points, cashback, or exclusive perks based on their purchasing behaviour, referrals, product registrations, or social engagement.

Modern loyalty software goes far beyond simple point tracking. It integrates seamlessly with mobile apps, web portals, QR codes, POS systems, and payment gateways — creating a unified, omnichannel loyalty experience for both businesses and their customers.

Key Features to Look for in Loyalty Reward Program Software

Not all loyalty platforms are built the same. When evaluating a solution for your business, here are the must-have features:

1. QR Code-Based Reward Distribution A robust loyalty reward program software should allow businesses to generate secure, encrypted QR codes for campaigns, SKUs, or store locations. These codes should be configurable with time restrictions, geographic limits, and one-time use policies to prevent fraud and ensure traceability.

2. Instant Payouts via UPI or Bank Transfer Speed matters. The best platforms deliver cashback or rewards directly into a customer’s UPI ID or bank account within seconds of a valid scan — creating instant gratification that drives repeat engagement. Zero delays mean zero drop-offs.

3. Flexible Points and Reward Rules Every business is different. Look for software that lets you create custom earning thresholds, reward tiers, and personalized rules for different customer segments — whether you’re running a B2B distributor scheme or a B2C retail programme.

4. Real-Time Analytics and Dashboards Data is the backbone of any successful loyalty strategy. Your platform should offer real-time tracking of scan activity, redemption rates, customer behaviour, and campaign performance — giving you the insights to optimise on the go.

5. Omnichannel Accessibility Customers interact with your brand across multiple touchpoints. A great loyalty management software ensures consistent programme access across mobile apps, web platforms, QR codes, SMS, and in-store POS — so no customer is left out.

6. Fraud Prevention and Security Auto-expiring QR codes, one-time usage enforcement, and encrypted scan validation are non-negotiable for protecting your loyalty budget from misuse.

Benefits of Implementing Loyalty Reward Program Software

Boosts Customer Retention Studies consistently show that loyal customers spend more and churn less. A well-designed loyalty programme can increase retention rates by up to 30%, turning one-time buyers into lifelong brand advocates.

Increases Average Order Value When customers know they’re a few points away from a reward, they’re more likely to spend that little extra. Points-based loyalty structures naturally encourage higher basket sizes.

Drives Repeat Purchases Whether it’s points expiring soon or a milestone reward within reach, loyalty software keeps customers motivated to return — again and again.

Strengthens Brand Engagement Customers who feel recognised and rewarded develop emotional connections with your brand. Over time, this translates into word-of-mouth referrals and organic growth.

Delivers Actionable Business Intelligence Beyond rewards, loyalty platforms generate rich customer data — purchase frequency, preferred products, geographical trends — that empowers smarter marketing and merchandising decisions.

How Modern Loyalty Software Works: A Simple Flow

Customer Enrolment — Customers sign up via a mobile app, web portal, QR scan, or in-store registration using their mobile number or email ID.

Action & Earn — Customers earn points or cashback by making purchases, scanning product QR codes, referring friends, submitting reviews, or completing promotional activities.

Automated Calculation — The system instantly calculates and credits points based on predefined business rules (e.g., ₹100 spent = 1 point).

Reward Redemption — Customers redeem accumulated points for discounts, free products, gift cards, or direct bank/UPI cashback — seamlessly and instantly.

Insights & Optimisation — Businesses monitor performance through dashboards, heatmaps, and real-time reports, refining campaigns for maximum impact.

Who Can Benefit from Loyalty Reward Program Software?

The versatility of modern loyalty software makes it suitable for a wide range of industries:

Retail & FMCG — Reward end consumers for product purchases and brand loyalty

E-Commerce — Drive repeat orders and reduce cart abandonment

Manufacturing & Distribution — Incentivise channel partners, dealers, and distributors

Healthcare & Pharmacy — Build long-term relationships with regular patients and customers

Hospitality & Food Service — Convert first-time visitors into regulars with personalised perks

Choosing the Right Loyalty Reward Program Software for Your Business

When selecting a platform, prioritise solutions that offer scalability, ease of integration, strong security protocols, and local payment support (such as UPI for Indian markets). CFCS Cloud Solutions, through its LoyaltyNest platform, offers a QR-code driven, UPI-integrated loyalty reward programme software trusted by businesses across India and internationally — including markets in Malaysia, Singapore, Saudi Arabia, and the UAE.

With over 25 years of IT expertise, CFCS delivers an end-to-end loyalty management solution that automates the entire reward lifecycle — from secure QR generation to instant customer payouts — making it one of the most comprehensive platforms available for businesses of all sizes.

Conclusion

Loyalty is no longer just about points on a card. In 2026, it’s about delivering instant, meaningful, and personalised rewards that make customers feel valued every single time they interact with your brand. Investing in the right loyalty reward program software is not just a marketing decision — it’s a strategic business imperative.

Whether you’re a growing startup or an established enterprise, a well-implemented loyalty platform can dramatically increase customer lifetime value, reduce churn, and give you a competitive edge that’s hard to replicate.