It is no exaggeration to say that collecting customer data is now essential to building customer loyalty. The top performing brands in the Asia-Pacific (APAC) region and beyond have long been gaining valuable insights into customer preferences, behaviors and spending patterns through various means of data collection. The information they gather is invaluable in their quest to meet customer needs more effectively.
As McKinsey observes, behavioral data can then be used to analyze the customer journey in detail, helping brands to understand the initial interaction and consideration of purchase, through to actual purchase and, optimally, repeat purchase.
Incentivizing those repeat purchases often involves rewarding those who are faithful to the brand by using a key strategic tool: the loyalty program. And it certainly is a popular means by which to engage and incentivize customers: according to our Global State data for 2024, customer loyalty and retention is a top three trend to watch for practitioners in the APAC region.
Given the aforementioned data benefits for an organization, it’s easy to see why. For the consumer, however, loyalty programs should not be “just about freebies”. Writing for Forbes, Patricia Rioux urges brands to “find creative ways to let your loyal customers know you appreciate their devotion to your brand and give them a good reason to shop”.
What is the multi-brand loyalty program?
Reflecting this need for creativity and innovation, a number of APAC brands are now taking incentives and rewards a step further by offering multi-brand loyalty programs. This approach can appeal to customers by supporting broader lifestyle choices and providing greater flexibility, and it is a hit with customers even beyond the APAC region. Global consumer research conducted by Valuedynamx in early 2024, found 90 percent of loyalty program members want the flexibility to redeem loyalty points with multiple brands.
Multi-brand loyalty programs allow customers to earn points through various consumer activities. They can then redeem these points in return for a wide range of rewards from a multitude of brands offering experiences such as shopping, dining, travel and entertainment.
This creates a comprehensive and attractive loyalty ecosystem – and also provides valuable information about a customer’s preferences and lifestyle.
The approach isn't exclusive to the APAC region.
Here, we examine three prime examples of innovative loyalty programs demonstrating these principles.
1. Humm Group Flight Centre Mastercard: Live like a jet-setter
Humm Group's Flight Centre Mastercard offers a rewards program designed for customers who frequently travel or engage in purchases related to travel. Uniting multiple brands under one system, it offers a structure where cardholders earn Flight Centre Rewards points for each purchase they make, with the option to redeemed various travel-related activities, including car hire, cruises, tours, and more.
The program provides different reward rates based on where the cardholder shops. For example, for every NZ$100 spent on standard purchases, cardholders earn 1.50 Flight Centre Rewards. However, when they shop at Flight Centre in New Zealand, the rate is doubled to 3.00 Flight Centre Rewards for every NZ$100 spent.
This dual structure encourages customers to engage with Flight Centre and its network of associated brands, while incentivizing them to earn points at a faster rate when booking travel directly with Flight Centre.
The Flight Centre Mastercard also offers additional benefits, such as no international transaction fees, making it attractive to customers who travel frequently or purchase from international merchants. Cardholders can also access long-term finance deals, allowing them to make significant purchases with interest-free or payment holiday terms.
READ MORE: How retail brands across Asia-Pacific
are enhancing customer loyalty
2. TimesPoints: Rewarding engagement, not sales
TimesPoints is a unique loyalty program from Times Internet Limited (TIL), designed to reward users for engaging with various TIL products.
Unlike traditional reward programs where points are earned by spending money, TimesPoints rewards users for spending time on activities such as reading articles, watching videos, registering on the site, commenting on stories, and linking stories to Facebook and Twitter.
These activities can be done across a range of TIL platforms, including The Times of India, The Economic Times, Navbharat Times, and NewsPoint. Some activities offer more points than others, encouraging deeper engagement with TIL's products and services.
The program has a wide network of online and offline partners. It encompasses a broad range of categories where points can be redeemed, including travel with partners like MakeMyTrip and Paytm Flights, fashion with brands such as Myntra and Bata, healthcare with Netmeds and PharmEasy, and food with BigBasket and Taco Bell. Points can be redeemed on exclusive deals, discounts, and free merchandise from these partner brands.
TimesPoints demonstrates a truly novel approach to loyalty programs by rewarding users for engaging with content, and then offering a wide array of redemption options across various brands and industries.
3. Yuu Rewards Club: Uniting more than 1,000 brands
The Yuu Rewards Club is one of Singapore's most comprehensive loyalty programs, designed to reward customers for everyday shopping. With more than 1,000 participating outlets, Yuu Rewards Club allows members to earn points at a transparent rate of one point for every SG$1 spent. Partners include popular brands such as Cold Storage, CS Fresh, Giant, Guardian Health & Beauty, 7-Eleven, BreadTalk, and Mandai Wildlife Reserve, among many others.
Introduced to Singapore in 2022, Yuu Rewards Club provides special bonus points offers for spending with specific cards, like the DBS Yuu Card and PAssion POSB Debit Card.
In addition to accumulating points through shopping, members can redeem points for a variety of rewards, including Wildlife Park admission tickets and discounts at participating outlets. Yuu Rewards Club also actively encourages members to donate their points to charitable causes through the PAssion CARES initiative.
The success of Yuu Rewards Club stems from its streamlined approach to rewarding everyday shopping, integrating a vast network of both local and international brands. The program's versatility in earning and redeeming points has proved groundbreaking, offering a modern perspective on how to build customer loyalty and gain consumer insights.
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Innovative customer incentives
As we have seen, brands in the APAC region are leading the way in innovative consumer loyalty programs and incentivizing purchases, partnering with multiple brands to foster repeat business within a broad network of customer experience.
Humm Group's Flight Centre Mastercard, TimesPoints, and Yuu Rewards Club exemplify how companies can creatively engage with a growing customer base and reward a wide spectrum of consumers with a diverse set of preferences and lifestyles. The concept and approach of these schemes continues to appeal to modern consumers seeking convenience and variety.
APAC brands looking to build on customer data and foster loyalty should take note. By integrating customer data and incentivizing repeat engagement with a wide partner network, businesses can create even richer customer personas and deliver a more rewarding and seamless customer experience that supports an entire lifestyle, and not just a consumer need.
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