Koomalooma is the world’s first Loyalty BPaaS (Buisness Process as-a-Service) and this makes our solution unique with many advantages for our partners. In this post we would like to describe what is a BPaaS and what are the advantages of using a BPaaS for Loyalty.
What is a BPaaS?
If were to build a general framework of IT services (a super simplification of different models including Gartner’s services models), we could allocate services based on two criteria:
- Business Proposition. This is the general business goal of the service offered: increase business value and effectiveness vs. decrease overall costs and be more efficient.
- Offering Model. This is the way the services are offered: One-to-One (highly customized for the customer) or One-to-many (standardized for many customers)
On the right side, we have the so-called Cloud Services, typically offered via standard APIs and/or standard browser accessible web panels. On the lower rside of Cloud we have IaaS (infrastructure as-a-Service) and PaaS (Platform-as-a-Service). We will focus instead on the upper right corner of the framework, where we have SaaS and BPaaS.
SaaS (Software-as-a-service) is a software distribution model in which some third-party provider hosts applications, making them available to customers over the Internet (The “Cloud”).
BPaaS is the acronym for Business Process as a Service. It is also known as Business-as-a-Service (BaaS). Gartner defines BPaaS: “the delivery of business process outsourcing (BPO) services that are sourced from the cloud and constructed for multitenancy. Services are often automated, and where human process actors are required, there is no overtly dedicated labor pool per client. The pricing models are consumption-based or subscription-based commercial terms. As a cloud service, the BPaaS model is accessed via Internet-based technologies.“
BPaaS can be horizontal or vertical, based on the process outsourced. A vertical BPaaS is industry specific (e.g. Airline bookings). Horizontal BPaaS is function specific and cross industry (e.g. Online Payment Processing).
Difference between BPaaS and SaaS
The difference between BPaaS and SaaS is very simple. While the “offering model” remains the same (the Cloud), the difference relies in what is offered: A SaaS offers its customer an internet accessible software through which the customer can undertake some business process. A BPaaS instead together with the software, offers the process management.
The goal of the BPaaS is thus to reduce effort on the customer side by also managing the process, taking advantage of the BPaaS multitenancy (scale economies).
If you want to know more about the difference between BPaaS and SaaS for loyalty check this blog post we wrote earlier this year.
Koomalooma is a BPaaS
Koomalooma is the world’s first Loyalty and Rewards BPaaS and this makes koomalooma very different from its competition. Most providers offering a loyalty platform for mobile or web companies have a SaaS model. Within the SaaS model, typically the merchant pays a monthly fee to have access to a loyalty software through which it can manage its loyalty and rewards program.
koomalooma is instead a fully outsourced process offered via the Cloud. Merchants control the issuing of the points based on their marketing and sales goals. koomalooma takes care of all the rest, from procuring and delivering the rewards to managing the loyalty related marketing activities.
The difference relies in who does the loyalty work. With SaaS it is the merchant, with BPaaS it is the provider (koomalooma).
What are the advantages of using a BPaaS for Loyalty?
First of all, many factors should be considered in selecting between a SaaS and BPaaS for loyalty, such as company size and nature of the business. However these are the main reasons for a merchant to choose koomalooma, a loyalty BPaaS vs a SaaS.
- Effort: Managing a loyalty program is no easy process. It requires setting up legal terms with members, make the correct accounting and financial processes, sign-up and manage members (including customer care, complaints), prepare a catlog of prizes that is truly rewarding, deliver the rewards. Do you have the resources internally to manage this efficiently? Could these resources work on more useful processes for your business? With a BPaaS the loyalty process is outsourced to koomalooma and internal effort is kept to defining the loyalty strategy (campaigns) and controlling results.
- Competence: If a loyalty program is not well managed it won’t have any effect on driving retention and growing sales. As a matter of fact, it can be counterproductive. A loyalty program to be effective must be truly rewarding and relevant for the user. Not only, the program sponsor must undertake all the related marketing activities to stimulate the user through the program. Do you have these competences in your company? If not, do you have the time and money to build these competences? With a BPaaS you can leverage koomalooma’s loyalty program management competences without having to invest in building these internally.
- Complexity and Scale: When operating at international levels or with big volumes of points and rewards, many complexities may arise: from localization of reward catalogs, local regulations, local tax duties, VAT related issues, accounting and customer care. Do you have the resources to manage this complexity? Do you have the resources to manage this complexity and potential issues that may arise from offering the program? Koomalooma leverages its program’s scale to take care of complexity efficiently.
- Technology: koomalooma leverages its global program scale to adopt the newest marketing and user experience technologies for its processes. These range from UX optimizations, AI for data analysis and marketing purposes to tech integrations into a multitude of technology and business partners. Many of these technologies would be too big of an investment for a single company’s loyalty program but as BPaaS provider we spread the cost through the multitenancy.
koomalooma’s Loyalty BPaaS is a great way to get your company started on a loyalty program effortlessly.
We hope we managed to explain what is a BPaaS and what are the advantages of using a BPaaS for Loyalty. If you are interested in knowing more you can visit our business page.
If we’ve already convinced you and you can’t wait to get your company started on a loyalty program, go to our partner registration page to Sign-up. (If you are a startup get in touch with us after sign up, we will load your account with some $$ to get you going).