How retail brands across Asia-Pacific are enhancing customer loyalty

For retail brands in the Asia-Pacific (APAC) region, the importance of customer loyalty cannot be overstated, it plays a pivotal role in driving sustainable growth and fostering enduring relationships with the region’s ever-expanding consumer base.

APAC brands without a strong focus on customer loyalty face a myriad of challenges that can hamper their success. What’s more, the repercussions of neglecting customer loyalty extend beyond immediate financial implications; brands may also suffer from reputational damage and an erosion of customer trust.

Customer loyalty opportunities in APAC

Evidence suggests that APAC customers are only too willing to put their faith in brands that align with their values. A Sitecore survey of consumers in Singapore and Hong Kong found that 80 percent of respondents want brands to connect with them on a personal level, and 70 percent said that brands had deepened their relationship through positive online experiences.

In fact, it has never been more important for brands in the Asia-Pacific region to focus on customer loyalty. According to Kate Conroy, the go-to-market lead for retail advertising at Google APAC, a “loyalty reset” is taking place in the region, with every customer decision presenting a chance for brands to win sales and build loyalty.

So, customer loyalty opportunities abound for APAC organizations – and many are taking advantage of them. Sitecore’s State of Digital report found that the 49 percent of APAC businesses currently deepening their innovation, digital transformation and technology spend, have seen an increase in customer loyalty along with an improvement in overall CX.

Building customer loyalty in APAC

According to the Eagle Eye report Grocery’s Great Loyalty Opportunity, loyalty programs are one of the most popular choices for APAC consumers and retailers alike when it comes to finding and delivering value – second only to sale or promotion.

A prime example comes via Australia in the form of supermarket chain Woolworths’ Everyday Rewards program. The initiative utilizes Real-Time Loyalty — a loyalty management system that enables connected, personalized experiences for around 14 million members. The retailer also boasts more than a quarter of a million subscribers to its Everyday Extra subscription program, which focuses on recurring benefits and extra perks for in-store rather than online shoppers.

Meanwhile, Shopee, a prominent Singapore-based e-commerce platform, has successfully used gamification to enhance the allure of its distinctive tier-based loyalty program, Shopee Rewards. This system provides shoppers with personalized vouchers catering to their specific needs.

Customers attain different loyalty tiers within the gamified Shopee app based on the number of orders they complete over a six-month period. The tiers – classic, silver, gold and platinum – are accompanied by virtual cards. Initially, all Shopee users begin at the Classic tier, but they have the opportunity to upgrade and earn exclusive customer vouchers simply by increasing their shopping activity. Upon completing their first 10 orders, users ascend to the silver tier, and so on.

Winston Goh, Shopee Singapore's head marketer, told Campaign: “In-app engagement tools like games and live streams are avenues for businesses to reach new customers. For instance, a smaller business focused on building customer trust and credibility can leverage Shopee Live to strengthen relationships with shoppers through authentic, intimate, and real-time interactions.”

In addition, Shopee Mall – a invitation-only premium retail space reserved for brand owners and authorized distributors – provides advanced tools that allow brands to customize their own loyalty programs to target specific audiences.

What the experts say about customer loyalty

To find out how retail brands across the region can foster and nurture customer loyalty, CX Network asked three of its top influencers in the APAC region to share their insights.

Added value

“Retailers looking to grow customer loyalty in 2023 and beyond need to deliver value to customers beyond the transaction,” says serial entrepreneur Jason Bradshaw.

“Understanding the sales transaction doesn't create loyalty. It's helping your customers maximize the value, benefits and joy that leads to repeat and referral business.”

Customer help

Danny Phillips, retail, CX retention and loyalty expert, recommends investing more in experiences that 'help customers shop' than in activities that 'help you sell’.

“So many brands primarily see themselves as the products they sell – an inside-looking-out view,” he explains. “As such, they invest most of their resources into optimizing how they sell those products to 'capital C' Customers.

“If they spent more of that time understanding how ‘lowercase c’ customers shop – their 'jobs to be done' using the products the brand has created – and invested in making that actual shopping experience fundamentally better, then customers would choose to shop with them again instead of a competitor in future, and maybe earlier than they would organically.”

Personalized, omnichannel experience

Lolitta Suffian, CXO – group head customer experience at Telekom Malaysia, offers several strategies to consider, including:

• Personalizing the customer experience – “Start with analytics and leverage the data to personalize interactions, recommend relevant products and provide tailored promotions.”

• Focusing on seamless omnichannel presence – “A detailed customer journey experience, be it online or offline, should be seamless, consistent and integrated across all touchpoints.”

• Encouraging customer feedback and acting upon it – “Pay attention to suggestions and concerns from surveys, reviews and social media platforms, engage with customers and take appropriate actions to improve products, services and the overall customer experience.”

• Cultivating a unique brand identity – “Differentiate your brand by creating a compelling story that resonates with your target audience and communicate your mission, values and unique selling propositions.”

Conclusion: Customer loyalty is at stake

With customer loyalty and its potential impact on success at stake, APAC retail brands must embrace strategies that proactively cultivate and enhance customer loyalty. Nurturing a loyal customer base can build a strong foundation for sustainable growth and help capitalize on the vast market opportunities within the region.