Asia Pacific is a region characterised by diverse economies, cultures and demographics. In such an environment, loyalty programmes need to be crafted to meet local consumers’ preferences. Asia Pacific is facing a turning point where it can no longer rely on volume-based growth. Added value and building brand advocates is becoming more important than ever. It is expected that reforming loyalty programmes will support retention in a region facing an economic slowdown.
This report comes in PPT.
Leading markets in APAC are increasingly digitalised, with so-called “superapps” being deeply embedded. This connected environment offers both opportunities and challenges for loyalty programmes, as it offers more ways to communicate and engage with consumers, while at the same time increasing competition, with consumers having access to new brands, offers and initiatives.
Consumers in APAC have historically valued word-of-mouth, relying on recommendations from friends and families, and this remains influential in terms of shopping information sources. With the digitalised environment, social media and KOLs are also impacting purchase decisions, especially for younger consumers. With various communication channels already existing, loyalty programmes should utilise these channels to ensure maximum impact.
Transactional loyalty is well-established in APAC, thanks to loyalty ecosystems; however, consumers often join more than one transactional loyalty programme, and unredeemed points and rewards are costly for businesses. Creating emotional loyalty can help in getting loyalty unstuck through more authentic one-to-one relationships with customers.
Asia is a diverse region, and one size typically does not fit all. While standardised loyalty programmes are efficient and have consistency , it is also important to introduce a local touch, where loyalty programmes offer unique features depending on local market needs. Finding the right balance could lead to a winning position in the region.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.See All of Our Definitions
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