For loyalty programme service providers, expanding to a new market can be costly and results are difficult to measure in terms of return of investment. Partnering with local players can help introduce and penetrate the usage of loyalty programmes efficiently, tapping into new customer bases and communities. Yuu Rewards has been very successful in expanding its footprint utilising this strategy in Asia Pacific. However, when considering partnerships, it is important to assess the partner's brand visibility and local reputation.
Tapping into growth markets through loyalty programme partnerships
In order to drive growth, many loyalty programmes are seeking opportunities outside their home markets to expand global or regional footprint. With noticeable momentum, occurring in the Asia Pacific region is the rapid expansion of loyalty programme, yuu Rewards. Yuu Rewards is one of the fastest growing coalition loyalty programmes in Hong Kong, China which was launched by DFI Retail Group in 2020. Yuu Rewards is a digital point-based loyalty programme which provides perks and benefits for its members across an expansive list of 2,500 merchants. The programme has grown to become one of the most popular mobile loyalty platforms in the country, attracting 4.2 million users, according to company sources.
In August 2023, a partnership between ride hailing giant Gojek (GoTo Gojek Tokopedia PT), DBS (DBS Group Holdings Ltd), and yuu Rewards was announced to further extend the programme’s footprint in Singapore which it originally entered in 2022. The partnership allows Gojek users to be rewarded with yuu Rewards points when using a DBS yuu card or PAssion POSB Debit Card. With this partnership, yuu Rewards taps into the 0.8 million monthly active Gojek users (as of 2019) in the country.
In Singapore, ride hailing continued to be the most popular mode of shared mobility by holding nearly 88% of the total shared mobility market in value terms in 2022
Source: Euromonitor International
The segment is projected to record 12% CAGR growth in Singapore for the period 2023-2027 which is higher than the global and Asia Pacific projections. Within this segment, Gojek continues to be the second leading player following Grab (Grab Holdings Ltd) in Singapore which allows yuu Rewards to amplify its membership base even more.
Foodservice is another key segment where yuu Rewards has expanded its partnerships. In 2023, yuu Rewards further partnered with DFI Retail Group and FoodPanda in Singapore to increase the offering in the food delivery and quick commerce space. The aim is to enhance the value proposition as well as convenience and the overall user experience. DFI Retail Group and FoodPanda are leading players in retail and third party delivery foodservice e-commerce, respectively.
32% of respondents in Singapore state they order food for home delivery on a weekly basis or more
Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey, 2023
Food delivery is considered a significant factor within consumer experience in Singapore. With these strategic partnerships, working with leading players in growing industries, yuu Rewards has successfully gained awareness and is quickly being acknowledged as a convenient point-based loyalty programme platform allowing access to multiple brands and services. As a result, yuu Rewards recognises the importance of strategic partnerships which can help widen its consumer appeal, expand in more regional markets and reach across different consumer segments.
Understanding consumer preferences is key for the success of strategic partnerships
In addition to looking into various industries’ growth and reviewing leading players, understanding local consumers’ habits is crucial in deciding who to collaborate with and how to gain the most out of the partnership.
57% of the consumers in Singapore will only purchase from brands that they trust completely
Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey 2023
It is therefore essential that when exploring strategic partnerships these are with well-trusted brands in the market which share similar values, vision and objectives.
Forging partnerships to unlock potential
Strategic partnerships can help achieve the loyalty programme service provider’s goal to enter new markets with the right perception. Working with other brands can also boost collection of big data about the cross-category preferences and spending patterns of users, which can then lead to enhanced customer acquisition.
Partnering with local players also provides a great foundation to capitalise on already established strong brand trust among local consumers. Trust, transparency, regulation and consumer privacy will remain pertinent concerns for consumers. Building strong partnerships and embracing new business models that fit the needs and preferences of local consumers will help reach out to new segments, and drive customer engagement.
Download our new white paper, Loyalty Redefined: Turbocharge Customer Retention with High-Value Programmes, for in-depth trend descriptions and strategic recommendations on Loyalty.
Read our article, Megatrends: Sharing Economy-Capitalising on Shared Mobility’s Future Growth, to learn more about shared mobility trends.