Airline Customer Loyalty: A Comprehensive Guide to the Growing Demand

Posted on October 20, 2024 by Megan Fiorendino

Frequent Flyer Programs are far from just a status—they’re a lifeline for the airline industry! These programs do more than just dish out points or miles, they nurture genuine customer relationships. In the fiercely competitive skies, where fare wars are the norm and margins are slim, airline loyalty programs give them a way to stand out.

In this blog, we will cover everything about airline loyalty programs – starting from its definition, the need, the challenges, some of the reigning airline loyalty programs, and why now is the best time for airlines to venture into them.

What is an Airline Loyalty Program?

An airline loyalty program much like any other loyalty program out there, is a tool run by airlines to transform their existing customers into loyal customers. Just like discounts offered to shoppers in any shop, airlines provide benefits to their regular flyers for choosing them over other airlines. However, airline loyalty programs are more than just airline miles and rewards; at Capillary, we call it creating memorable experiences for flyers.

From searching for a flight to booking, boarding, traveling, landing, and, reaching the final destination – it’s the entire customer journey that offers different touchpoints for airline brands to interact with the customers. Since no two passengers are similar, a common approach of making every customer engaged wouldn’t work in the long run. Instead, you need to understand the choices of your flyers & address their needs distinctly. Even when hundreds of passengers are going on each flight regularly, engaging with them on a personal basis needs time and thorough planning for which brands must have a robust marketing strategy.

The Inception of Airline Customer Loyalty

The tradition of making your flyers loyal to the airline brand was started by United Airlines in 1972 with the name ‘Frequent Flyer Program (FFP). Further, in 1979, Texas International Airlines adopted FFP full-fledged by using actual mileage tracking of passengers & rewarding them based on the miles covered in the air. This legacy of FFP was further followed by many airlines including Western Airlines, American Airlines, Delta, Continental Airlines, Air Canada, and many others. FFPs were designed to reward frequent flying customers. It was based on simple math; the more customers fly, the more points they will get & higher conversion rates the airlines will have. The core airline loyalty program – FFP, was based on an earn & burn scheme. The greater will be the distance or miles covered; the greater will be the counter of points, and customers can burn them on the next flight to earn more.

With the growing customer demand, airlines further partnered with associated businesses like cab services, restaurants, lounges, etc., to create unmatchable experiences for their customers throughout their air journey. The earned rewards & offers from FFP programs could now be used to shop for food items at airports, book car rentals, and take flight tickets using exclusive travel credit cards. Ancillary services benefited airlines & associated partners largely in creating a profitable & comforting ecosystem for travelers. Do you know that Frequent Flyer Programs have dedicatedly gained so much popularity in the airline industry that the term then and even today is interchangeably used for airline loyalty programs?

Are FFPs enough to make the Airline Industry Bloom?

Though FFPs gained much fame in the industry, airline customer loyalty is much more than FFPs. Since FFPs can benefit the company as long as they offer flying services, the pandemic was an eye-opener for the airline industry to factor in a situation where airlines had to stop flying services for some time. This was the situation of existential crisis for the airline industry. And that’s the time when airlines figured out the need to widen their scope of the customer loyalty business. Besides contingencies like the pandemic, there are other reasons that have now made airlines shift away from the routine FFP approach & refurbish airline loyalty programs. Let’s take a look at the three callouts:

1. Loyalty programs matter more to some travelers than others

Mark it as a fact. The low-frequency travelers often overlook loyalty programs as they continually seek cheaper flights from any airline. Even if they signed up for a loyalty program, they must be opting for 3-4 programs at a time & they keep switching between them. High-frequency business travelers rank loyalty programs as the second factor when choosing flights over safety & punctuality. That’s why core FFPs alone can’t bring larger outcomes to airlines.

2. Airlines need customized loyalty programs

Every user’s journey is unique right from the purpose of traveling to surfing flights, budgeting, booking patterns, choosing preferences, and thinking of travel ideas. So, even if you mark an ideal customer journey with your flyers, you can miss plenty of touch points with just a single earn-and-redeem loyalty program. Some of your flyers may prefer a complimentary spa session before a late-night flight, while other ones may like to have warm food instead. Existing airline loyalty programs miserably fail to engage with this massive variety of customer preferences. Hence, the need for personalization in the loyalty programs that traditional FFPs won’t offer.

3. A dire need for brand advocates

Your regular flyers can be the best tool to put your airline marketing in shape. It is vital to conduct timed surveys to ask your customers if they prefer to be your brand advocates & share their experiences with others. Airlines often sign celebrities as brand ambassadors to build credibility but in today’s social media age, counting on testimonials from regular flyers can work wonders for your airline brand.

Why is Airline Loyalty a priority now?

When people choose to travel with your airlines, they trust you. When your customers know they are traveling safely with all precautionary measures & treated as per their individual preferences, they won’t be skeptical about choosing your flight next time. Free goodies are still widely preferred by people as they often rake up points in their cart to claim free coffee, complimentary spa lounge services, & even free flights. Though different airlines have different mile reward & redemption systems based on their brand rules, these perks are capable of engaging flyers.

If your airlines widen the scope of airline loyalty programs from FFPs to partner bundling, points to cash conversion options & give personalized promotions – you can grow your customer engagement rate. Your flyers may need to shop for something from the airport, play games to kill boredom, or upgrade their seats – the reasons could be many but as an airline brand, you must factor in all these requests in advance integrating real-time information and airline services, you can help your customers find the solution to the ongoing situation. Recently, Deloitte conducted a proprietary survey of 2572 air travelers who took at least 1 flight in a year with their most preferred airlines. And, here’s what figures tell –

Flyers often travel for business or leisure purposes. Hence, they are looking for comforting experiences in either of the cases. Loyalty programs are meant to make this journey convenient & hassle-free for flyers unlocking access to an exclusive airline experience. Here, partnering with travel & hospitality businesses and enabling your customers to use their loyalty points to access these VIP services can help you find an edge. You can also add perks of traveling with your flight rather than your competitors.

The environmental & climatic change that we’ve witnessed in the late 2020s worldwide has made businesses and travelers mindful of their choices & preferences for that need. As a result, industry leaders, business owners, and individuals are discussing sustainability goals and taking action in support. Shai Weiss – CEO at Virgin Atlantic, shares the vision of airlines with sustainability in his TED talk about how their airlines are paving the way to fulfill the pledge of net-zero emissions by 2050. Your brand too can take a step towards airline sustainability or any other cause you support. Futuristic loyalty programs & loyal flyers often prefer airlines that not only support global causes but also work towards them. All airline businesses sooner or later adopt these trends to offer personalized experiences to their flyers. However, given that the trends keep changing and the technology is constantly evolving, airlines must open new dimensions to stand out in this competitive world.

And the 5 Best Airline Loyalty Programs are…

SkyMiles by Delta Air Lines – Delta flyers can earn miles while traveling on Delta as well as via their partner airlines like Aerolíneas Argentinas, Aeroméxico, Air Europa, Air France, China Airlines, China Eastern, Czech Airlines, Garuda Indonesia, Kenya Airways, KLM Royal Dutch Airlines, and many more. For its members, miles never expire; they can shop on the SkyMiles marketplace or opt for upgrades anytime they plan to travel.

Rapid Rewards by Southwest Airlines – With some 3900 flights and no blackout dates, Southwest’s Rapid Rewards can be used on car rentals, hotel stays, & of course, flight upgrades with no expiration timelines.

AAdvantage by American Airlines – American Airlines has more than 1000 partner companies, and their AAdvantage flyers can redeem miles while opting for flights, hotels, upgrades, and even shopping for retail products at 1200+ stores like Sephora, Adidas, Walmart, Groupon, Macy’s, Eddie Baver.

Virgin Atlantic Flying Club – Virgin Atlantic’s flying club members can spend miles with their host partners like eBay, Tesco, Delta, and many more. The best part is the redemption of reward travels & discounts on the Virgin Holidays.

Mileage Plus by United Airlines – United Airlines lets its travelers access thousands of destinations across the globe with their 30 partner airlines. From enjoying cruises to having fine dining & shopping experiences, flyers can use their reward points for everything.

Airline Customer Loyalty: The Runway to the Future

It’s clear that airline loyalty programs have become the lifeline for the industry. Even if customers fly just once a year, airlines can maintain a connection with their flyers all year round through partner programs, co-branded credit cards, digital wallets, and marketplace shopping.

The benefits of investing in a robust airline loyalty program is undeniable. With Capillary’s value-driven loyalty framework, brands can quantify the boost in top-line revenue a loyalty program can bring. This fresh take on loyalty, combined with upcoming trends and deep customer insights, can attract more travelers to your brand.

It is time to give your airline loyalty program a facelift. Reach out to our Loyalty Experts to revive your FFPs & transform them into the most engaging airline loyalty programs.

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FAQs

What are Airline Loyalty Programs?

An airline loyalty program is a strategic tool used by airlines to turn casual flyers into loyal customers by offering benefits for their repeated choices, similar to shopper discounts in retail stores.

Why is Airline Customer Loyalty important?

Travelers trust your airline when they feel safe and catered to their preferences, making them likely to return. Perks such as free coffee, spa services, or flights not only delight but also build loyalty, despite varying mileage systems across airlines.

What are the best Airline Loyalty Programs?

Here are the 5 best airline loyalty programs – SkyMiles by Delta Air Lines, Rapid Rewards by Southwest Airlines, AAdvantage by American Airlines, Virgin Atlantic Flying Club, and Mileage Plus by United Airlines.

Related Blogs

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Maximize Airline Loyalty Programs for Profit and Passenger Satisfaction: A Guide through Examples

Coalition Loyalty Programs Being A Driving Force for Retailers

Posted on October 18, 2024 by Megan Fiorendino

Multiple brands coming together for a campaign has been around for a while, but it’s never really taken off. The benefits are obvious, but several challenges, like designing a program that works for every stakeholder, make it difficult. In this blog, we detail real-world examples and benefits of coalition loyalty programs.

What Is a Coalition Loyalty Program?

Often called “shared loyalty programs”, coalition loyalty is a unique concept in which multiple brands join together in a partnership and offer a joint loyalty program. Not to be confused with “umbrella loyalty” or “group loyalty” (where businesses with large brand portfolios offer a loyalty program across individual brands), Coalition Loyalty is in play when many unrelated brands band together to offer customers rewards that can be earned from a variety of participating brands, with options to redeem rewards at the brand of their choice.

Imagine a scenario where you frequently earn points every time you shop at your favorite grocery store, racking up even more points when you fuel your vehicle at a partnering station or while traveling with partner airlines, and finally being able to redeem your points on a new phone from an associated electronics outlet, or a gourmet meal at that restaurant you’ve been dying to try. Coalition Loyalty turns this into a reality.

From a consumer’s point of view, coalition loyalty is an uncomplicated way to collect points while shopping at more than one brand and avoiding the irritation of managing multiple apps on their phone or cards in their wallets.

How Brands Can Benefit From Coalition Loyalty

Although the advantages for customers are straightforward, what are the potential advantages for brands?

- Expanding Networks With Cross-Promotions

By their very nature, consumers always try to maximize their own benefits, and those belonging to a coalition loyalty program look to accumulate as many reward points as they can, as fast as they can. For this reason, they are more likely to alter previous shopping habits to make purchases with other brands in the same network. When brands within a coalition sell bundled products or promote other participating brands for complimentary services, it strengthens customer loyalty toward the coalition and encourages more frequent shopping across the coalition. As an example, the BLUE Loyalty Program* (operating in the GCC and Egypt by Al Futtaim Group).

The program drives loyalty and sales for all participating brands (such as IKEA, Kate Spade, ACE Hardware, Guess, and more) with 2-for-1 offers that incentivize their 200k+ loyalty members to earn greater cashback and rewards when they make purchases with two or more brands.

Promoting Brands With Longer Purchase Cycles

A coalition loyalty program can promote products with a longer purchasing cycle by supplementing them with short-purchase-cycle products and brands. For example, bundling a monthly phone connection with an annual cable connection can drive greater sales for both businesses. With a coalition loyalty program, consumers often collect a smaller number of points from regular operations and look forward to collecting a lot of points from bigger purchases. This ‘coalition network effect’ builds and maintains greater top-of-the-mind awareness that all the participating brands benefit from.

Earn Rewards Faster

One of the main advantages of a coalition program for the consumer is that aspirational rewards can be earned within a reasonable time. Studies from the Springer Link estimate that consumers can earn between three and ten times as much reward value from a coalition program than from a single-operator loyalty program.

Lowering Costs And Risks

The costs for running a coalition loyalty program is usually shared between the multiple brands within the program, and any risks that arise will not fall solely on one company (when well executed!). Furthermore, because the costs are lower than with individual loyalty plans, businesses may be able to pass those savings on to the customer as more attractive incentives. Explore how Capillary’s Loyalty+ can drive your coalition loyalty efforts seamlessly.

Building Up Smaller Businesses

Small and Medium-sized enterprises may not yet have established enough trust or network reach to successfully execute their individual loyalty programs. Coalition loyalty programs can provide a huge boost to small niche businesses because they can benefit from the network reach of the coalition. It can be a cost-effective way to offer their customers a variety of attractive benefits that they would not be able to provide without the support of other businesses. For example, VIG Group runs TAP TAP*, a coalition loyalty program with a mix of well-established brands as well as smaller and niche brands.

Through the 32 participating brands, the program has an estimated customer base of 13M, which all participating brands (especially those with smaller audiences) can benefit from.

Improving Customer Experience With Shared Data

Brands within a coalition can obtain richer insights about their customers by agreeing to share transactional information and customer data about preferences and purchases between brands participating in the coalition loyalty program. This can help individual brands fine-tune the experience they offer customers by being predictive and practical to a customer’s needs.

Cutting Out The Noise

An intelligent coalition loyalty program must take an omnichannel approach to communication, and ensure that customers are not bombarded with too many offers in one week, or the same message from multiple brands on different channels. A coalition loyalty program can leverage Capillary’s Engage+ to capture customer engagement data and can harmonize engagement to cut through the noise.

Growing Individual Brand Awareness

At its core, a coalition loyalty program aims to increase the number of people enrolled. The inclusion of complementary coalition partners reduces variety-seeking behavior as customers will favor a program that is offering them a one-stop destination for their point-earning activities.

*Capillary is a proud partner of VIG Group and Al Futtaim Group for these initiatives

Great Coalition Loyalty Program Examples

Around the world, prominent brands are adapting their proprietary programs to capture the value of multi-partner coalitions. As a result, coalition programs are thriving.

One of the largest coalition programs in the Middle East region is Air Miles ME, which operates throughout the UAE, Qatar, and Bahrain.

With a diverse range of partners such as HSBC, Sharaf DG, Careem, Booking.com, Damas, and more, the Air Miles ME program has enrolled over a million members and has delivered over 760,000 rewarding experiences to its members since launching in 2001. Members can collect and redeem Air Miles with partner brands both in-store and online (via the website and mobile app), also allowing them to access their Air Miles profiles whenever they need. The Air Miles program delivers a stellar customer experience, made possible with customer data, and understanding how their members want to be recognized and communicated with.

PAYBACK is another leading coalition loyalty program, launched in Germany in 2000, and currently claims more than 600 online partners and 35 retail companies in Germany.

After immense localized popularity, the program has spread to multiple countries. In India, PAYBACK was launched in 2010 and is today one of India’s largest Multi-Brand loyalty programs with over 100 million members, and more than a hundred partner brands, such as Big Bazaar, Hindustan Petroleum (HPCL), ICICI Bank, BookmyShow.com, MobiKwik Wallet, and more.

The program offers members omnichannel loyalty linked to their mobile number or loyalty card number and targets members with personalized promotions to increase their point earnings. PAYBACK offers participating partners insights from a huge repository of customer data across all partners, allowing companies to tailor their offerings to customer requirements, and subsequently measure the success of their campaigns. Partners also benefit from an exclusivity agreement, which means that their competitors cannot use PAYBACK as a marketing platform.

Avoiding The Pitfalls of a Coalition Loyalty Program

Although coalition programs offer multiple benefits, there are certain aspects and pitfalls that participating brands should watch out for.

Brands joining a coalition program need to ensure the reliability of the program since customers often tend to regard the loyalty program as if it were owned by the partner. This means any disappointment in the program can spill over to participating brands.
A major learning from successful coalition programs is that it is crucial to involve companies that offer ancillary or complementary products and services— not competitors.
To be successful, a coalition program should launch with major brands in the respective verticals. This is to ensure the maximum share of consumer wallets. This also allows the data collected to be more representative of the target market.

Conclusion

It’s clear that there are multiple benefits for brands that are part of a coalition loyalty program. However, in order to strike success, brands need to set clear goals for building long-term consumer loyalty and strategize intelligently through Capillary’s robust AI driven Loyalty solutions to ensure there’s no brand dilution by participating in the program. Get in touch with our Loyalty Experts to explore more.

What are coalition loyalty programs?

Answer :Coalition loyalty programs are partnerships where multiple brands or businesses collaborate to offer a unified loyalty program. Customers earn points or rewards that can be redeemed across participating brands, enhancing customer value and engagement.

How do coalition loyalty programs benefit retail brands?

Answer :By pooling resources, retail loyalty benefits from coalition loyalty programs, which can lead to greater customer reach, increased brand loyalty, and shared customer data insights. This collaborative approach often results in higher customer retention and more frequent shopping.

What are some examples of successful coalition loyalty programs?

Answer :Successful examples include the Plenti program in the U.S., Nectar in the U.K., and PAYBACK in Germany. These programs demonstrate how multiple brands can create a rewarding and convenient customer experience (CX).

How can retail brands implement a coalition loyalty program?

Answer :Retail brands can implement a coalition loyalty program by partnering with other non-competing brands, selecting a suitable loyalty platform, and designing a reward system that offers value across all partners. Effective communication and promotion of the program are crucial for its success.

What challenges do retail brands face with coalition loyalty programs?

Answer : Challenges include aligning the interests of all participating brands, managing the complexity of shared data, and ensuring a seamless customer experience. Additionally, maintaining customer engagement across diverse brands can be demanding.

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QSR Loyalty Programs: How Restaurants Can Elevate Customer Experience in 2025

Posted on October 17, 2024 by Nick Lupo

The fast-food industry is transforming, and QSR loyalty programs are at the heart of this evolution. With digital-first experiences shaping customer expectations, brands must go beyond traditional points and discounts. The key? Robust loyalty software that delivers hyper-personalized rewards, seamless digital integrations, and engaging gamification strategies.

Much like other loyalty programs, fast food loyalty programs are all about building lasting relationships. Whether through AI-driven personalization, tiered memberships, or exclusive QSR customer experiences, the right strategy can significantly boost repeat visits and brand advocacy. Let’s explore how top restaurant brands are redefining loyalty in the quick-service industry.

Emerging QSR Loyalty Trends For 2025

1. Hyper-Personalization

Customization of offers, rewards, and customer experience is enabled by a sophisticated process of rich customer data collection, mainly through loyalty programs. Consumer demand for this type of personalization is high and almost table stakes at this point for brands.

Brands will continue to evolve and experiment with personalized menu items via digital menu boards, apps, dynamic pricing, and unique offers based on the 360-view of individual customers. The digital transformation of this industry will continue to push brands in this personalized-focused way of interacting with consumers.

2. One-Size Fits All, Does Not Fit All

In a sea of cookie-cutter loyalty programs in the restaurant industry, one size does not fit all. To have a successful loyalty program that drives repeat business, helps increase engagement, and steals market share from your competitors, it must be unique and intentional to your business. Using a loyalty vendor that simply streamlines and replaces stock images and colors to create your program from their standard shell will not drive ROI in today’s competitive landscape.

Loyalty programs should be a reflection of your brand – differentiated and custom-built with your customers in mind.

3. Gamification

More and more industries are incorporating gamification strategies into their loyalty programs, and the F&B industry is no exception. Gamification is more than just a buzzword; the right strategy can unlock specific behaviors, drive restaurant traffic, motivate engagement, and more. Gamification helps move your loyalty program away from being largely transactional with more stickiness and increases customer engagement. Clearly defining the goals behind your gamification strategy is crucial in turning these interactions into deliberate opportunities for your brand.

4. Digital is the Future, but Don’t Restrict Customers

There’s no doubt that digital is the future of loyalty for the restaurant industry, but forcing customers to 100% go digitally might turn away some customers from your loyalty program. Communicating and engaging with your customer in their preferred channel has always been critical in effective loyalty marketing. Blocking a loyalty member from the program’s benefits because they do not have a smartphone or prefer to order without a phone will not keep that customer loyal or happy. Adding avenues to participate in how they want to engage with the program is critical for success.

How Top Restaurants Are Winning with QSR Loyalty Programs

Now that we have looked at some of the top trends dominating F&B loyalty, let’s also look at the leading examples of brands that are taking a bite out of their competitor’s share and winning over customers.

MyMcDonald’s Rewards

The iconic golden arches took the industry by storm when they launched a true loyalty program in the summer of 2021. The program added 26M+ members in its first year (now at 50M+ members in their top six markets) with a high engagement rate that drives their digital sales with significant increases each quarter.

The loyalty-based app is a spend-and-earn program allowing members to gain points based on spend to redeem free food and beverage items. Their program is simple, without member tiers or engagement incentives but offers a plethora of channels on how to use the app – order ahead, in-store, or drive-thru with a unique code. Another great feature of the program is how quick and easy it is to reward yourself with free food – new members receive a large order of fries for simply downloading the app. Members can redeem their first free item after only spending $15 with the chain. The loyalty app also features unique deals for members and has recently rolled out bonus point opportunities for dayparting.

Chick-fil-A One Rewards

You can’t mention F&B loyalty programs without highlighting the Chick-fil-A One Rewards program. This program has a long history as the industry standard in sophisticated loyalty programs for QSRs. Functioning as a typical spend-and-get program, Chick-Fil-A takes its program one step further by adding tiers where loyal members receive better exchange rates on earnings and additional perks and benefits.

Higher-status members receive many benefits for being loyal, with many ‘surprise and delight’ freebies from your favorite location, exclusive experiential experiences such as the Chick-fil-A home office tour, birthday benefits, and more.

Chick-fil-A has recently launched a gamification initiative to drive engagement through weekly missions and rewards. ‘Code Moo’ features the lovable Chick-fil-A cows as they try to sabotage their burger-flipping nemesis, Circus Burger, with 2.5 million food rewards available each week. This gamification-based campaign provides an interactive experience for members and allows them to win rewards and prizes.

Domino’s Pizza Piece of the Pie Rewards

Domino’s is one of the world’s largest pizza brands, with a presence in over 90+ countries. Their Piece of the Pie Rewards program is an extremely popular program where members can earn 10 points every time they place an order of $10 or more. Members can redeem a free pizza once they reach 60 points or save for multiple free pizzas later. Domino’s makes it easy to earn more pieces of the pie with points being earned any way you order – by phone, in-person, online, or in the app.

Capillary’s client, Domino’s Pizza Indonesia, adopted a customer-centric strategy by utilizing the Capillary platform to engage with customers by creating personalized customer journeys in various social channels. Capillary segmented the customer data into 170+ digital touchpoints across 40 campaigns that achieved results of an increase in 10% active customer base, 85% high incremental sales, and a 21% increase in overall sales.

Carrabba’s Dine Rewards

As we step across the ocean for some classic Italian dining, customers can get above and beyond in the Dine Rewards Carrabba’s loyalty program. Their spend-and-earn program allows customers to accrue rewards for dining in exchange for perks, free dinners, and other incentives received through email.

To receive your rewards after your visit, or take-out experience, Carrabba’s has decided to forgo any digital experience during the buying process and requires only a simple phone number from the rewards account written on the receipt at the end for the waitress to implement. Simple as that.

When you join the Dine Rewards program, you’ll earn a complimentary Calamari instantly. You can also be the first to find out about new menu items, upcoming events, and exclusive news when you sign up to receive emails from them. It is a well-oiled loyalty program that continues to bring back customers through its doors daily.

Why QSR Loyalty Programs Are a Must-Have in 2025

As QSR loyalty programs continue to evolve, brands that prioritize customer experience and personalization will gain a competitive edge. Investing in restaurant loyalty software and gamification strategies can transform one-time diners into lifelong brand advocates.

QSR loyalty isn’t just mere rewards—it’s about building deeper connections. With technology-driven loyalty solutions like Capillary’s Loyalty+, restaurants can ensure their loyalty programs remain relevant, effective, and customer-centric in 2025 and beyond. Talk to our Loyalty Experts to know more.

FAQs

1. What are QSR loyalty programs, and how do they work?

QSR loyalty programs are customer engagement strategies designed for quick-service restaurants. They typically reward customers for repeat purchases through points, discounts, or exclusive perks. In 2025, many brands are leveraging restaurant loyalty software to enhance personalization, gamification, and mobile-first experiences.

2. How can fast food loyalty programs improve customer retention?

Modern fast food loyalty programs go beyond simple rewards—they create a seamless QSR customer experience through personalized incentives, mobile app integrations, and tiered benefits. These strategies increase brand affinity and encourage repeat visits.

3. What is QSR experience, and why does it matter?

The QSR experience refers to the overall journey a customer has with a quick-service restaurant, from ordering to rewards redemption. A seamless, engaging, and rewarding experience—enhanced by loyalty management and digital convenience—directly impacts customer satisfaction and retention.

4. What features should I look for in restaurant loyalty software?

The best restaurant loyalty software includes AI-driven personalization, omnichannel engagement (mobile, web, and in-store), real-time rewards tracking, and gamification elements to keep customers engaged. Integrations with loyalty program software also enhance operational efficiency.

5. How does gamification improve QSR loyalty programs?

Gamification makes QSR loyalty programs more interactive by incorporating challenges, leaderboards, and surprise rewards. This approach boosts engagement, encourages repeat visits, and enhances the overall QSR customer experience.

Top Ramadan Marketing Campaigns – A Big Opportunity for Retailers

Posted on October 16, 2024 by Summaya

While it’s easy to imagine the month of Ramadan freezes business for the F&B sector, the opposite is true. The holy month opens a gateway of opportunities for marketers in the retail sector. Like every festive season, brands across the domains try interesting brand activation strategies to capture the attention of a massive audience and create personalized connections.

We’ve noticed a shift in consumer behavior from people celebrating Ramadan and all festivals digitally with their family and friends across the globe to today’s well informed customers. Now, people are more likely to search online for the products they want to shop for or services they like to opt for.

Did you know that Google Search and YouTube are the top touchpoints for consumers in Saudi to research products during Ramadan?

When Saudi customers use Google search to explore products, they explore YouTube in the holy month for prayers and food recipes. This is where brands have a great opportunity to level up their search and video advertising. Now, the challenge is figuring out what the customers are purchasing during this holy season.

Research on customers’ shopping behaviors across different verticals reveals in Ramadan reveals that consumer electronics, home and garden, fashion, food and groceries, and beauty products are in major focus.

Here’s a quick drill down from Google’s Consumer Insights, showcasing the timely spending by the Indonesians during Ramadan across multiple verticals. Combining these insights with loyalty efforts through Capillary’s robust Loyalty+ platform is the blueprint for strategizing and implementing successful Ramadan marketing campaigns.

Cut through the Clutter with Data-driven Marketing

With so many traditional marketing strategies available, a unique approach is necessary to make you stand out. Data-driven marketing can help you take that holistic approach to reach your shoppers. Let’s keep these four aspects in mind while analyzing your customer data:

While this is the time of the year when brands strategize and implement great Ramadan campaigns, market saturation is obvious. Too many brands may land up with generic offers, discounts, and campaigns that may not deliver the value they seek.

That’s why it’s important to take a deep dive into customer data & insights you might be collecting with Customer Data Platforms (CDPs). You can use advanced analytics platforms like Capillary Insights+ to perform a psychographic analysis of your shoppers’ behavior. 360-degree view of customer’s journey with your brand can give you better insights about their preferences and help you personalize their shopping experiences.

According to a Google Consumer’s Report, during Ramadan, 78% of consumer electronic shoppers shop both online & offline. This implies brands need to maintain an omnichannel presence for their customers.

Capillary has helped the largest retailers in the Middle East and North Africa (MENA) understand their customers through a multi-segment strategy. It has categorized customers into 13 segments based on variables like recency, frequency, monetary, preferred shopping category, discount, etc.

Here are the top 5 data-driven Ramadan Campaign ideas that have generated great results for the brands working with Capillary. Mentioning factors that contributed the most to customer satisfaction before, during, and after Ramadan.

CAMPAIGN 1: Global F&B brand boosts conversion rates with Targeted Ramadan Campaigns

Channels Used: SMS, Email, Push Notification
Result: 2.1% response rate, AED 138K in sales through the campaign

Taking a user-case, Maryam, a 35-year-old mother of 2 children – Fatima and Sultan – is married to Ahmed. Maryam craves cheesecake and chocolate cake at 7 PM in the evening. Maryam is not an outlier in her preference.

Capillary’s data revealed to this F&B brand that cheesecakes are the most ordered products between 6 p.m. to 8 p.m., just around Iftar time. The uplift in order volumes continues well after midnight until around 2 AM as Suhur closes.

Based on this surprising insight that cheesecakes are as much popular as Knafeh and other traditional Ramadan delicacies, the brand designed a targeted Ramadan campaign. It helped the brand save on communication costs without any loss of sales with channel prioritization.

Capillary and the brand arrived at a statistical model to predict the probability of a customer responding to Ramadan’s Buy-one Get-one offer between 6 PM and 8 PM. The channel prioritization feature of Engage+ helped the brand reach shoppers with the offer on the channels they are more likely to interact with. The campaign targeted a limited set of customers, resulting in a 2.1% response rate for day 1 compared to a 1.3% response to the previous year’s bulk campaign.

CAMPAIGN 2: Leading Luxury Brand generated incremental sales with Personalized Promotions

Channels used: SMS, Email
Outcome: 8% additional transactions and incremental sales of SAR 24,000
Situation: While office Iftars mark Ramadan, family gatherings, and Suhurs with old mates, this holy month has an inherently social aspect. For Ahmed, Maryam, and the kids, the shorter working hours and the upcoming long break for Eid give the perfect window to go out and shop.

On one of the days when Ahmed was returning home early, he received an offer from his favorite luxury brand in a manner he couldn’t refuse. Based on the survey brand shared earlier with him, they know Ahmed is a conscious customer, like 36% of Saudi Arabians who avoid harmful ingredients for beauty products. The couple was interested in discovering organic perfumes and decided to visit the stores to learn more about this offer.

Capillary helped the brand target family customers with different preferences for different categories. In this case, we helped the brand decode the consumer behavior using past transaction data and ran a 20% off on the bill containing 1 men’s and 1 women’s perfume.

This Ramadan campaign generated 8% additional bills and incremental sales of SAR 24,000 as compared to the previous year’s bulk campaign for the same offer.

CAMPAIGN 3: Major Kid’s Apparel Brand generated 3X ROI with Segmented Facebook Ramadan Campaigns

Channels used: Social (Facebook), WhatsApp

Outcome: 3X better campaign ROI compared to other channels

While Maryam was exiting the mall, Fatima was amused to see a funny-looking cartoon character image along with the QR code and asked her mother to click her picture with it. Maryam instinctively remembered that she had come across an offer on her Facebook feed a few days back. But how was Maryam targeted on Facebook?

Capillary worked with the brand to generate a “Parents Segment” who had visited the brand’s store in the last 6 months, and to everyone’s surprise, 78% of this segment was available on Facebook and nearly 90% on WhatsApp. The brand pushed the WhatsApp campaign & Facebook campaigns for this segment of customers per their channel preferences.

Later, when Maryam received a message from the brand on WhatsApp, she recalls that’s the same place near which she clicked Fatima’s picture. She checked the offer and then scanned the code using the link shared to get details. She received a personalized offer on kidswear issued to her based on her previous transactions. The time she checked discounts on one of the outfits Fatima adored on her last visits, she felt so happy and instantly placed an order.

In this fashion, the brand received 3X more conversions simply by targeting customers on Facebook & WhatsApp marketing alone.

CAMPAIGN 4: Leading Luxury Homeware brand generated incremental sales with Personalized Social and Mobile App Promotions

Channels used: Social, Push Notification

Outcome: Incremental sales worth 559 OMR in 2 days

While shopping for homeware items to gift during Lebaran, shoppers prefer availability, quick deliveries, and pocket-friendly items. 42% of Saudi shoppers often switch between brands per the delivery timelines.

Understanding such customer behaviors helps brands be festive-ready as they plan personalized campaigns to reach shoppers. Since most shoppers in the Middle East search for gift ideas on YouTube and Facebook, we helped luxury brands optimize their Facebook Ad campaigns. Capillary’s Engage+ made the campaign’s goal setting, message optimization, and campaign management seamless for the brand to reach its target audience.

Maryam was a part of the loyalty customers target list based on the previous year’s Ramadan campaign transactions. Brand filmed the spirit of the holy month, highlighting values like charity, spirituality, and kindness. They targeted the core values of Ramadan to create an emotional connection with shoppers and made sales alongside.

Through Facebook campaigns and Push Notifications, the brand earned loyal customers. In the campaign, customers were given 20% to 45% off based on the loyalty tier and the campaign was successful in generating 559 OMR incremental sales with an additional 0.3% hit rate over a period of 2 days.

CAMPAIGN 5: UAE’s leading Jeweler generated incremental sales with Micro-Segmentation and Personalization

Channels used: SMS, Email

Outcome: Incremental sales worth AED 900,000

Ramadan brings with it plenty of occasions to socialize with friends and family. Pre-lebaran, people often search for personal care & beauty products. When everyone wants to look their best, jewelry is a great way to elevate a look.

UAE’s leading jewelry brand partnered with Capillary to perform micro-segmentation for its audience. A well-targeted SMS & email campaign was launched for Ramadan. Maryam was targeted with the Eid offer to win a free gold coin above the purchase of AED 5000. Since the majority of the target audience was smartphone users, we’ve used rich media messaging (learn more about RCS for SMS campaigns) to boost the chances of customers checking the offer.

Wrapping Up

Don’t forget consumer experience is the key!
Approximately two-thirds of Saudi Arabian consumers experience online shopping issues during the holy month. This clarifies the importance of optimized online experiences over the Ramadan brand activation strategies you likely execute for any festive season.

Drive your customer engagement strategies and earn more loyal shoppers with Capillary’s robust Loyalty+ by booking a demo with our Loyalty Experts today.

Schedule a Demo

Indigo’s BluChip: Transforming Airline Loyalty with Capillary Technologies

Posted on October 8, 2024 by Capillary Marcom

In the rapidly evolving airline industry, Indigo continues to soar as one of the world’s fastest-growing carriers, offering unparalleled customer service to millions of passengers each year. As India’s largest airline by market share and the sixth-largest globally by market capitalization, Indigo has consistently focused on innovation and customer satisfaction. Now, with the launch of its much-anticipated loyalty program, BluChip, the airline is raising the bar for loyalty programs across the sector.

BluChip is designed to enhance the passenger experience, offering a user-friendly way to earn and redeem rewards. Powered by Capillary Technologies, a global leader in AI-powered loyalty SaaS solutions, BluChip sets new standards for flexibility, lifetime rewards, and real-time redemptions. This partnership brings together Indigo’s customer-first philosophy and Capillary’s technological expertise, ensuring that the program delivers seamless, personalized experiences for every traveler.

Why BluChip is a Game-Changer:

- Earn & Burn Flexibility: BluChip members can effortlessly accumulate points based on their spending on every Indigo flight. Points can be redeemed in real-time, ensuring that passengers enjoy instant gratification with the ease of redeeming rewards whenever they choose.

- Lifetime Validity: Unlike traditional programs where points expire after a set period, BluChip offers lifetime validity on rewards for active members, ensuring that passengers never lose out on their hard-earned points.

- Indigo’s Proven Growth: Indigo’s success is driven by its commitment to customer satisfaction, efficient service, and an expanding network that covers both domestic and international routes. BluChip strengthens this approach by offering frequent flyers exclusive benefits and tiered upgrades based on their loyalty, making every journey more rewarding.

- Capillary’s Expertise: Trusted by over 15 Fortune 200 companies, Capillary brings deep experience in building loyalty programs that scale. Our AI-driven platform powers BluChip with advanced features like personalized offers and seamless point management, ensuring long-term engagement with customers.

- Strong Pre-registration Uptake: Even before its official launch, BluChip has generated significant interest from Indigo’s loyal customer base. With pre-registrations already underway, the program is expected to see widespread adoption, signaling strong demand for a loyalty program that truly rewards frequent flyers.

Indigo: A Rising star in the global airline industry

Indigo’s rise as one of the world’s top airlines is nothing short of remarkable. Known for its reliable, on-time performance, and customer-friendly pricing, Indigo has become the airline of choice for over 100 million passengers annually. BluChip comes at a time when the airline is expanding its international presence and refreshing its digital platforms to offer passengers a seamless and user-friendly experience.

As Indigo continues to grow, BluChip will play a key role in building even stronger connections with its customers, offering rewards that are truly valuable and easy to redeem. Whether flying for business or leisure, passengers can now enjoy more benefits, making every journey with Indigo more enjoyable.

Capillary Technologies is proud to partner with such a dynamic airline, bringing its cutting-edge loyalty technology to one of the most competitive industries in the world. Together, Indigo and Capillary are taking loyalty a notch higher in the airline sector.

Speak to an airline loyalty expert

Future-Proof Your Loyalty Program With These 8 Customer Loyalty Strategies

Posted on October 7, 2024 by Anjali Pillai

The latest Consumer Spend Report from Upside has uncovered a troubling trend for businesses—particularly retailers. The rise of the “uncommitted consumer” is growing. These are shoppers driven by personal whims rather than any brand loyalty. This presents a serious challenge for businesses that rely on retaining customers over the long term.

In an era where consumer preferences are constantly shifting, future-proofing your loyalty program has never been more critical. Customer behavior, market trends, and technology are all evolving at a rapid pace. Businesses that want to secure their future must proactively adapt and align their customer loyalty strategies to not just survive but thrive.

Here are eight essential customer loyalty strategies that can help future-proof your loyalty program:

1. Advanced personalization to improve customer satisfaction and conversion

Personalization has evolved far beyond simply addressing a customer by name. In a digital landscape flooded with endless messages and promotions, targeted communication is vital. The reality is that most consumers now suffer from banner blindness—the tendency to ignore anything resembling a marketing ad. This makes breaking through the noise more challenging than ever.

Shockingly, 78% of loyalty program members report dissatisfaction with the level of personalization they receive. Today’s customers expect brands to understand their unique preferences, needs, and behaviors. Personalization as one of the key customer loyalty strategies involve delivering the right message at the right time in a way that resonates with the individual. It’s about building a lasting connection and ensuring your brand is etched into their memory.

2. Omnichannel integration to reach your customers everywhere

If your brand is not integrating customer engagement across multiple channels, its days may be numbered. Consumers now expect brands to meet them wherever they are—whether it’s in-store, online, via a mobile app, or on social media. This is where an omnichannel approach becomes critical.

By creating a unified, seamless experience across all touchpoints, omnichannel integration allows brands to offer personalized interactions while ensuring consistency. Each platform provides a unique opportunity to strengthen the brand’s relationship with its customers, fostering loyalty through convenience and accessibility. Businesses that fail to offer this fluid experience risk losing out to competitors who can.

3. Crafting seamless experiences that go beyond transactions

Customers don’t just want to buy a product—they want a memorable experience. Loyalty programs that focus solely on transactions often fail to foster deep, emotional connections with their members. To truly future-proof your program, you need to focus on delivering exceptional customer experiences throughout the entire journey.

This involves everything from providing easy reward redemptions to offering top-notch customer service. Customers should feel valued every step of the way. Experiences that go beyond the transactional realm elevate the relationship between the customer and the brand, making them more likely to stay loyal.

4. Taking Data-Driven Decisions for Better Results through advanced insights

With data becoming increasingly fragmented, it’s easy for brands to feel overwhelmed. To stay ahead, businesses need advanced analytics tools that offer real-time insights into customer behavior, preferences, and emerging trends. This allows brands to make data-driven decisions that shape their customer loyalty strategies in a way that resonates with their audience.

Advanced analytics enable brands to predict what their customers need before they even realize it themselves. By leveraging this level of insight, companies can align their loyalty strategies accordingly and ensure they are always one step ahead of the competition.

5. Differentiated Rewards Tailored Specifically to Your Customers

Generic rewards are quickly losing their appeal in a world where consumers crave uniqueness and exclusivity. Tailoring rewards to match your customer’s specific desires, whether it’s experiential rewards for frequent travelers or personalized offers for high-value customers, can significantly elevate loyalty.

A one-size-fits-all approach no longer cuts it. To deliver truly differentiated rewards, brands need a comprehensive, 360-degree view of each customer. Understanding their behaviors, preferences, and purchasing habits enables brands to craft rewards that feel personal and meaningful, driving higher engagement and satisfaction.

6. Building trust through data privacy

In the wake of Google’s announcement to phase out third-party cookies (and later retracting), data privacy continues to be a top concern for consumers. Ensuring the security and protection of customer data is not just a regulatory requirement—it’s a loyalty driver. Customers want to feel that their data is safe in your hands.

When selecting a loyalty program partner, ensure they comply with top industry standards like ISO, ITIL, PCI DSS, CCAP, and GDPR. Ask for certifications, and ensure you know where and how your customer’s data is being stored and protected. Transparency builds trust, and trust is the foundation of any successful loyalty program.

7. Employee Engagement: The Underestimated Loyalty Driver

One often overlooked factor in loyalty program success is employee engagement. Highly engaged employees are far more likely to deliver excellent customer service, which in turn drives customer loyalty. Engaged employees create positive, memorable experiences for customers, acting as true advocates for the brand.

According to Gallup’s latest meta-analysis, business units with highly engaged employees show a 10% increase in customer loyalty. By investing in your employees’ motivation and satisfaction, you not only improve internal culture but also foster external loyalty.

Capillary’s Clarissa Schealer, Senior VP of Sales, reports that many of the company’s partner brands are thinking outside of the box, abandoning tier mechanisms altogether, or providing access to higher tiers in creative ways, such as participating in training or activities aligned with core company values.

8. Investing in a trusted and reputed loyalty program

Finally, future-proofing your loyalty program requires choosing the right loyalty partner. It’s essential to work with a partner who offers end-to-end solutions, understands the latest technology trends, and is committed to your program’s long-term success. Your loyalty partner should help you focus on your core business while they take care of the operational and technical complexities.

Look for a partner who provides the tools, expertise, and flexibility to evolve your program over time. In a fast-changing world, agility is key, and your loyalty partner should be ready to adapt to emerging trends and customer demands.

And that is where Capillary Technologies stand out. At Capillary, we don’t just provide loyalty solutions; we deliver the expertise, innovation, and end-to-end support that will transform your program from ordinary to extraordinary. Our platform is designed to help you leverage advanced personalization, seamless omnichannel integration, and real-time insights to create unique, high-impact experiences that keep customers coming back.

With Capillary Technologies, you’re not just investing in a loyalty platform—you’re choosing a future-ready, customer-centric approach that will position your brand for growth and success in an ever-changing marketplace. Let us help you build a loyalty program that not only meets today’s needs but also adapts to tomorrow’s challenges. Let’s future-proof your loyalty– Book a demo now.

Discover the Best Loyalty Programs in Indonesia for Customer Engagement

Posted on October 7, 2024 by Gitanjali Mittal

The brand loyalty landscape in Indonesia is constantly evolving, driven by shifting consumer expectations and rapid digital transformation. While the pandemic temporarily slowed market growth, retailers in Indonesia adapted by building unique ecosystems to meet demand-supply challenges. Today, with economic pressures persisting, brands face increasing difficulty in retaining existing customers. In response, they are embracing innovative loyalty programs and strategies to win over a new wave of brand fans.

According to a recent Research & Markets report, the loyalty programs market in Indonesia is projected to grow from US$775.5 million in 2021 to US$1.47 billion by 2026, with an impressive CAGR of 13.6% during 2022-2026. This remarkable growth reflects how brands are investing in loyalty initiatives to engage and retain customers in a highly competitive market.

Indonesian consumers’ approach to loyalty rewards programs has shifted significantly. No longer satisfied with traditional models, shoppers increasingly demand instant gratification and seamless ways to redeem loyalty points. As a result, loyalty app Indonesia solutions and loyalty software are emerging as key tools for brands to meet these expectations.

To gain a competitive edge, businesses are integrating best loyalty programs with personalized strategies and technology-driven solutions. Capillary Technologies has been instrumental in helping brands address these challenges with its robust, modular product suite. By leveraging data-driven, AI-powered tech solutions, Capillary enables brands across diverse segments to gather actionable marketing intelligence, enhance customer experiences, and foster long-term loyalty.

In this blog, we explore 7 top loyalty programs in Indonesia that have successfully engaged customers and set benchmarks for others to follow.

Top Loyalty Programs in Indonesia

1. Starbucks- QSRs Partnership with SuperApps

Starbucks, is known for its offerings, rewards, and habit of creating customer delight. The brand has been expanding its roots in different countries by implementing different strategies. In the Southeast Asian market, the brand has partnered with SuperApp Grab to enhance customers’ dine-in and delivery experiences across 1,882 countries across the region. Now, Starbucks shoppers can place orders via the Grab app, make payments for dine-in orders via GrabPay e-wallets, and earn easy rewards.

The alliance unlocks double chances for customers to earn rewards with Starbucks and Grab SuperApp. Here, Starbucks wins the chance to personalize relationships with GrabPay, GrabRewards, GrabFood, GrabGifts, and GrabExpress. To strengthen customer relationships with the brand, it has enabled customers to redeem rewards in exchange for complimentary beverages and birthday treats.

2. Shopee – E-commerce Giant’s Approach to Streamlining Customer Engagement & Retention

Post-pandemic, several retailers are adding a digital dimension to their business to widen their reach, which was the same for Indonesians. When not every retailer plans to get a website, marketplaces got the hang of the situation. In July 2021, Shopee rolled out Shopee Mall Brand Membership to help brands retain their shoppers. That’s a loyalty program platform that sellers on Shopee can leverage to give rewards to their shoppers and offer exclusive experiences based on membership tiers.

Shopee executed this approach for its sellers to power brands with tools to understand their shoppers better, improve their experiences, and boost their profits. This strategy is exactly what all eCommerce owners can directly implement in their businesses to improve their customers’ phygital experiences.

3. Erajaya’s Eraclub – Club-based Multi-brand Loyalty Program

Indonesia’s leading conglomerate PT Erajaya Swasembada Tbk. (Erajaya) operates with its 87 distribution centers across 1100+ outlets in the country. As it expanded its range of products from mobile telecom devices to lifestyle, the brand launched an umbrella loyalty program – Eraclub. Its members could earn & redeem rewards with ease across all the brands under the Erajaya group. Looking to up out loyalty game? Check out Capillary’s robust loyalty software – Loyalty+.

With Capillary’s AI-powered customer engagement platform, Erajaya served customers with membership models, and personalized campaigns, and earned high-valued customers offering real-time rewards. The brand gathered 1.3 million new customers even during the global crisis in 2021. You can learn more about Eraclub’s success story here.

4. Wardah Beauty – Cause-driven B2B Loyalty Program

Wardah Beauty is Indonesia’s biggest halal beauty brand which serves its customers with a wide range of sustainable cosmetic products. On the D2C front, they run a typical loyalty program where customers can earn loyalty points on their transactions and can redeem them when they shop next.

However, on the B2B front, Wardah Beauty led a cause-driven loyalty program. It encourages its customers to become beauty ambassadors and entrepreneurs/influencers. Joining the Wardah Womenprenuer Community, they can sell products at attractive discounts and earn reward points as well. The brand has a range of products for which they can redeem their points; you can check more on this here.

5. The Mulia – Creating Unforgettable Customer Experiences with Tiered Membership Program

Mulia Privilege – Mulia’s loyalty program designed is an invite-only loyalty program focused on providing unique experiences to its loyal customers. The hotel brand offers a tiered membership program for all their guests at Hotel Mulia Senayan, Jakarta, and The Mulia, Mulia Resort & Villas – Nusa Dua, Bali. It’s an invite-only program where guests can be eligible to sign up after their first stay. Mulia Privilege has three tiers – Silver, Gold, and Diamond.

The guest’s profile will be on the Silver tier as they first enroll and will be upgraded to Gold as the member did a minimum spend of US$10,000 up to US$19,999 or stayed 30 qualifying nights (on direct bookings only) within qualifying rates and any rolling year. Further, guests’ member profiles will be upgraded to Mulia Privilege diamond members. Mulia Privilege members can earn and redeem points with dine-in at Mulia’s Food and Beverage outlets, luxury experiences, signing up for leisure activities, and unlock extra privileges as they move up the ladder to higher tiers.

6. Mapclub – Fashion & Lifestyle Brand Offers Phygital Rewards Program

MAPCLUB is Indonesia’s retail brand that deals in fashion & lifestyle products. The brand has partnered with several other renowned brands across verticals and delivers seamless omnichannel experiences. MAPCLUB stands out for its online-to-offline (O2O) approach. Customers can shop online or opt for the ‘Pay & Pick’ service after ordering online. The MAPCLUB rewards program is designed to offer variable reward points for customers shopping via variable touchpoints. A customer may earn 10 points for every 10 Rupiah spent at Supermarket & Digimap, while they can earn 50 points for shopping at a departmental store.

The approach of configuring variable reward points helps the brand get shoppers across multiple touchpoints. MAPCLUB members can redeem points both in-store and while shopping online. Moreover, they can use these points to unlock various promotions, get vouchers, contribute to charity, and earn experiential rewards. Per the member profile and latest additions, redemption options do vary and keep upgrading (In-Store is Back in Vogue: Get your Phygital Customer Experience Right).

7. Many more- Garuda Miles, BCA Rewards, Hypermart’s Poin Xtra

The best loyalty program in Indonesia can be yours with Capillary’s loyalty software. Get in touch with our Loyalty Experts to learn more.

Contact a Loyalty Expert

GarudaMiles: Garuda Indonesia’s frequent flyer program, GarudaMiles, allows members to earn and redeem miles when flying with Garuda Indonesia or its partner airlines. Members can enjoy benefits such as priority check-in, extra baggage allowance, lounge access, and exclusive promotions.

BCA Rewards: BCA (Bank Central Asia) Rewards is a loyalty program associated with BCA Bank. BCA credit cardholders can earn points for their transactions and redeem them for a wide range of rewards, including travel vouchers, shopping vouchers, and electronic gadgets.

Hypermart’s Poin Xtra: Hypermart, a popular hypermarket chain in Indonesia, operates the Poin Xtra loyalty program. Members can earn points by shopping at Hypermart stores and redeem them for discounts, vouchers, and special promotions.

Are you an Indonesian brand marketer thinking of tweaking your rewards program? Read our detailed marketers’ guide to enhance the rewards program experience. To consult loyalty experts on designing a personalized loyalty program for your brand, contact our experienced team of loyalty marketers.

FAQs

1. What are the most popular loyalty programs in Indonesia?

Some of the top loyalty programs in Indonesia include Shopee Loyalty, Erajaya’s Era Club, GrabRewards, and OVO Points. These programs are designed to enhance customer engagement and reward frequent users.

2. How do loyalty programs benefit Indonesian customers?

Loyalty programs provide Indonesian customers with rewards like cashback, discounts, exclusive offers, and points that can be redeemed for products or services. They also help customers save money and enjoy personalized benefits.

3. What makes a good loyalty program for Indonesian businesses?

A good loyalty program offers seamless integration with apps, personalized rewards, easy redemption options, and omnichannel support to provide a consistent customer experience.

4. Why are loyalty apps becoming popular in Indonesia?

Loyalty apps are gaining traction in Indonesia due to the increasing adoption of mobile technology. These apps provide convenience, instant rewards tracking, and personalized offers, making them a preferred choice for customers.

5. How can businesses in Indonesia implement a successful loyalty program?

Businesses can implement a successful loyalty program by partnering with a trusted loyalty software provider, offering meaningful rewards, leveraging customer data for personalization, and ensuring an omnichannel experience.

Capillary Technologies Enters DACH Region

Posted on October 4, 2024 by Capillary Marcom

Capillary Technologies, a global leader in customer engagement and customer loyalty solutions, is proud to announce its expansion into the DACH region. This entry into the DACH region marks a significant milestone in Capillary’s European growth strategy, following its successful expansion in the US and the acquisition of Tenerity’s Digital Connect Assets, which facilitated the company’s entry into the UK.

Capillary Technologies’ comprehensive suite of customer loyalty solutions—Loyalty+, Engage+, Insights+, and Rewards+—alongside a robust Customer Data Platform (CDP) and expert consultancy services through Brierley, will now be tailored to meet the unique needs of businesses in the DACH region.
The expansion is also supported by Capillary’s role as a Founding Partner of the European Loyalty Association, further solidifying its commitment to driving innovative loyalty solutions across Europe.
Rahul Ashok, Head of Growth DACH at Capillary Technologies, commented on the expansion: “Entering the DACH region is a significant step for Capillary as we continue to grow our presence in Europe. We will bring our world-class loyalty solutions to a new audience, tailored to the specific needs of the DACH market. We are in the process of setting up our team and office in Germany. Based out of Munich, Germany, I am excited to lead this initiative.”

Aneesh Reddy, CEO of Capillary Technologies, added: “Our expansion into the DACH region is a testament to our commitment to becoming the global leader in loyalty management. With a local team in Germany and our innovative product suite, we are well-positioned to help businesses in Germany, Austria, and Switzerland create loyal, lifelong customers. This marks the beginning of a new chapter for Capillary in Europe, and we are excited about the opportunities that lie ahead.”
As Capillary Technologies continues its rapid growth, there would be several strategic partnerships in the region to extend Capillary’s innovative loyalty solutions to one of Europe’s most dynamic regions. Businesses in the DACH region can now leverage Capillary’s industry-leading SaaS loyalty solutions to enhance customer loyalty, drive engagement, and increase their topline.

About Capillary Technologies

Capillary Technologies is a managed SaaS solution powering 500+ loyalty programs with its best-in-class loyalty technology platform and expert services. Founded in 2012, Capillary has a strong global presence across the United States, Asia, Europe, and the Middle East working with 400+ brands like Tata, PUMA, Shell, Metro, Petron, Domino’s, Kanmo Group, and Marks & Spencer. The platform’s suite of products – Loyalty+, Engage+, Rewards+, Insights+; are all AI-powered and sit on top of a powerful consumer data platform that has touched more than a billion end customers. Capillary is backed by marquee investors like Avataar Ventures, Filter Capital, Sequoia Capital, Warburg Pincus & more. For more information, visit www.capillarytech.com.

Top B2B Ecommerce Trends You Need to Know: Personalization, Omnichannel & More

Posted on October 2, 2024 by Bharat Menon

The B2B landscape is rapidly evolving, mirroring many shifts traditionally seen in B2C. Digital transformation is no longer a choice—it’s an imperative. The acceleration of online transactions, evolving customer expectations, and a growing reliance on data-driven decision-making are reshaping how businesses engage with their buyers. While traditional sales channels remain relevant, digital platforms are now the cornerstone of effective engagement. With high customer acquisition costs and increasing competition, focusing on B2B loyalty programs has become essential to retain and expand existing client and distributor relationships.

The Rise of B2B E-commerce Trends

The explosion of B2B e-commerce trends has opened a wealth of new channels for buyers. The pandemic further propelled this shift, with a surge in online transactions and digital-first buying experiences. According to McKinsey, nearly 65% of B2B companies now conduct sales online, outpacing traditional in-person sales. However, the challenge of customer retention persists—an Avionos report found that 90% of B2B buyers will switch suppliers if they don’t receive a seamless digital experience.

To navigate this changing landscape, businesses must not only embrace digital transactions but also build long-term customer relationships through strategic B2B channel loyalty initiatives. Here are the top trends redefining the space:

1. Personalization Through Smart Customer Analytics

Personalization is no longer a B2C-exclusive strategy—it’s making significant inroads in B2B loyalty as well. Leveraging artificial intelligence (AI) and machine learning (ML), businesses can analyze vast amounts of data to deliver hyper-personalized recommendations, dynamic pricing, and tailored content.

At Capillary, we work with over 250 enterprise brands across 30+ countries. One of our clients in Southeast Asia, a leading paints & coatings company, wanted to foster a sense of community among its distributors. Using Capillary’s B2B loyalty capabilities, they gamified the paint-buying process, driving increased engagement and repeat purchases. This initiative was powered by data-driven insights from our customer data platform, proving that personalized strategies work just as effectively in B2B customer loyalty as in consumer markets. Looking to up your loyalty game? Check out Capillary’s robust loyalty software – Loyalty+.

2. Omnichannel Experiences Lead to Top-of-the-mind Recall

Today’s B2B buyers expect the same seamless omnichannel experience as B2C customers. From social media and email to self-service portals and chatbots, businesses need to engage customers across multiple touchpoints. An effective omnichannel strategy ensures that every interaction is cohesive, improving brand recall and customer satisfaction.

A well-integrated omnichannel approach not only enhances engagement but also reinforces B2B channel loyalty by providing a consistent and convenient experience. This is why brands investing in loyalty as a core strategy see higher retention and increased customer lifetime value.

3. Prioritizing B2B Customer Loyalty Over Acquisition

In a world of shrinking attention spans and brand-switching behavior, retaining customers is both challenging and critical. According to research by Bain & Company, increasing customer retention by just 5% can boost profits by more than 25%. Given the economic uncertainties, more B2B brands are shifting their focus from acquisition to retention, doubling down on their B2B loyalty initiatives.

4. The push Toward Sustainability

Sustainability is no longer an afterthought—it’s a key driver in business decision-making. A study by the American Marketing Association-New York found that 24% of B2B buyers prioritize sustainability branding. Companies are responding by adopting greener supply chains, reducing waste, and creating eco-friendly products.

Loyalty programs can play a crucial role in driving sustainability efforts. Brands are increasingly integrating sustainability incentives—such as carbon offset credits and rewards for environmentally responsible purchases—into their B2B loyalty strategies. These initiatives not only build stronger customer relationships but also align businesses with the growing demand for ethical and responsible commerce.

5. Self-service Processes with A Seamless Customer Experience

Modern B2B e-commerce trends emphasize self-service functionalities, mirroring the expectations set by B2C platforms. From real-time inventory tracking and automated order processing to AI-driven chat support and video tutorials, businesses are investing in digital solutions to create a frictionless experience for buyers.

Loyalty programs, too, are evolving to complement this trend. Features like gamification, cart-based promotions, and tiered rewards systems are being integrated to drive B2B customer loyalty among distributors, sales partners, and vendors. These strategies not only enhance engagement but also reduce operational costs while boosting sales. Enhance your customer engagement with Capillary’s Engage+.

Final Thoughts

The B2B landscape is undergoing a digital revolution, and loyalty is emerging as a key differentiator. By embracing B2B e-commerce trends, delivering hyper-personalized experiences, and creating seamless omnichannel engagement, businesses can drive long-term B2B customer loyalty and stay ahead in an increasingly competitive market.

As the focus shifts from transactional relationships to strategic partnerships, B2B channel loyalty will become an essential tool for sustaining growth. Is your business ready to unlock the full potential of loyalty?

Contact a Loyalty Expert

FAQs

1. Why is B2B loyalty important in today’s digital landscape?

With rising customer acquisition costs and increased competition, B2B loyalty is essential for retaining existing clients and distributors. A strong loyalty strategy helps build long-term relationships, increase repeat purchases, and maximize customer lifetime value in an increasingly digital-first environment.

2. How do B2B e-commerce trends impact customer retention?

The rise of B2B e-commerce trends has led to higher customer expectations for seamless, personalized, and omnichannel experiences. Businesses that fail to provide a smooth digital journey risk losing customers to competitors, making B2B customer loyalty programs a necessity for retention and engagement.

3. How can personalization enhance B2B channel loyalty?

Personalization, powered by AI and analytics, allows businesses to offer tailored experiences, product recommendations, and customized pricing. This creates stronger B2B channel loyalty by making clients feel valued and understood, ultimately driving deeper engagement and increased sales.

4. What role does sustainability play in B2B customer loyalty?

Sustainability is becoming a key differentiator in B2B transactions. Many buyers prioritize working with eco-conscious brands, and loyalty programs that reward sustainable choices—such as carbon offset incentives—help reinforce long-term commitment and trust.

5. What are the key strategies for improving B2B customer loyalty?

To strengthen B2B customer loyalty, businesses should focus on:

Implementing data-driven personalization

Creating seamless omnichannel experiences

Developing self-service portals with a frictionless UX

Rewarding sustainability initiatives

Investing in gamified and incentive-driven loyalty programs

Loyalty Summit Chicago Recap: AI is Redefining Customer Loyalty in Travel & Hospitality

Posted on October 1, 2024 by Capillary Marcom

This year’s Loyalty Summit was held in Chicago and this two-day knowledge-packed event had loyalty experts and industry leaders from around the world including Capillary’s very own Clarissa Schealer SVP of Sales, and Lars Parmekar, Strategic Account Manager.

A larger theme explored this year showcased the lengths and breadths of the role of Artificial Intelligence in the loyalty space and how it can drive customer engagement, retention, and sustained brand loyalty efforts in the Travel & Hospitality industry.

Loyalty Innovation and Business Success Tie Together Seamlessly

While most business verticals have seamlessly transitioned into the digital era, customer loyalty strategies are stuck in a bygone era. Many enterprises still struggle with outdated tools and methods, despite having access to expansive data and technological advancements. However, there’s a silver lining as companies begin to embrace rapid experimentation, adopting innovation that’s crucial for rethinking their approaches to customer loyalty.

With personalization being a cornerstone of loyalty strategies for the past two decades, the industry is now harnessing cutting-edge technology to fully tap into its potential. Luc Bondar, Vice President & COO of MileagePlus at United Airlines illustrated United’s venture into Media via their Kinective platform. This venture is set to revolutionize how personalized ads are integrated into the traveler’s journey, enhancing content relevancy at scale while optimizing partner expenditures.

Capillary a proud sponsor of the Loyalty Summit 2024

Adding to the discussion, Brett Catlin, VP of Loyalty & Alliances at Alaska Air Group Inc., highlighted the benefits of the Alaska co-brand card, developed in partnership with Bilt. This collaboration not only allows frequent and occasional flyers to accrue miles but also enhances their potential to achieve flyer status. The partnership is particularly appealing to the younger and price-conscious demographic that may not typically earn status through air travel alone. This strategic move grants Alaska Airlines access to valuable market segments, further facilitated by Bilt’s innovative technology that allows miles and status accrual via card usage.

Further emphasizing on the subject matter, Alyssa Callahan, VP of Marketing at TravelCenters of America, shared insights from their data analytics efforts, revealing an overlooked demographic of RV owners among their primary trucker audience. This led to a strategic partnership with KOA Campgrounds, enriching their loyalty program and providing additional value to their diverse member base.

All of these instances underscore the role of innovation and data-driven strategies in identifying and capitalizing on new customer segments, demonstrating how traditional industries can pivot and innovate in this dynamic market.

Sustainability: The Next Loyalty Wave

Today’s customer base comprises primarily of Millenials and GenZs who are socially conscious customers. A consumer today would give preference to an enterprise that would offer sustainability options to its users.

Enterprises are seeing a shift from the traditional earn-and-burn strategies to a more holistic approach that creates personalized and emotional relationships through elements like sustainability initiatives. For instance, Etihad’s “Conscious Choice” rewards its members’ miles who carry less baggage thereby reducing carbon emissions. Sprinkled with gamification, they create a compelling customer experience through badges and exclusive tiers. Members can also aid Ethihad in buying sustainable aviation fuel (SAF) which is 3 to 4 times the price of normal aviation fuel. Etihad boasts to be the first airline to reward frequent flyers for being more sustainable on the ground as well as in the air.

Through green and sustainability initiatives, enterprises share core values with their customers, giving members the power to make sustainable choices affecting the brand, nurturing long-term customer relationships, and brand advocacy.

Sustainability also curbs overhead expenses, through energy-efficient practices reducing resource wastage, and operational costs while simultaneously adapting to possible future environmental compliances.

Creating Meaningful Engagement Over Flashy Offers

Meaningful touchpoints are more influential than mere discounts or offers. Price adjustments will not do the job, consumers want to feel valued. They are willing to pay more if the business’s value propositions are aligned with what they want from them. A robust customer engagement strategy aims to build and maintain strong relationships through a customer’s journey resulting in higher retention rates, program sign-ups, and higher order values.

Clarissa Schealer at Loyalty Summit Chicago

A good sign of the success of your engagement strategy can be attributed to your churn rate. It is a good indicator to understand how keen your customers are interested in your offerings or if they have already moved on to competitors. Interacting with customers at every step of the way at various touch points encourages future interactions and nurtures future brand evangelists.

Dave Andreadakis, Chief Growth Officer at Bluewater encouraged the audience to shift their attention from traditional offers or earn and burn strategies to looking at the bigger picture on how one can create meaningful engagement for their customers and members. The technological advancements we have at our disposal allow us the ability to create truly differentiated and personalized experiences throughout the lifecycle and to go beyond conversations around cost or earn and burn ratio.

“What kind of joy are we bringing our customers?” – Dave Andreadakis

Conclusion

The ultimate goal with all these strategies is to foster customer engagement and retention, building lasting relationships with its members. Capillary’s Loyalty tech offers more verticalization through AI integration offering seamless migration for enterprises of any size empowering brands to leverage the power of loyalty at their fingertips. Get in touch with our Loyalty Experts to discuss how your brand can benefit from our expansive Product Suite.

What is an Airline Loyalty Program?

The Inception of Airline Customer Loyalty

Are FFPs enough to make the Airline Industry Bloom?

1. Loyalty programs matter more to some travelers than others

2. Airlines need customized loyalty programs

3. A dire need for brand advocates

Why is Airline Loyalty a priority now?

And the 5 Best Airline Loyalty Programs are…

Airline Customer Loyalty: The Runway to the Future

FAQs

What are Airline Loyalty Programs?

Why is Airline Customer Loyalty important?

What are the best Airline Loyalty Programs?

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What Is a Coalition Loyalty Program?

How Brands Can Benefit From Coalition Loyalty

Promoting Brands With Longer Purchase Cycles

Lowering Costs And Risks

Improving Customer Experience With Shared Data

Cutting Out The Noise

Growing Individual Brand Awareness

Great Coalition Loyalty Program Examples

Avoiding The Pitfalls of a Coalition Loyalty Program

Conclusion

What are coalition loyalty programs?

How do coalition loyalty programs benefit retail brands?

What are some examples of successful coalition loyalty programs?

How can retail brands implement a coalition loyalty program?

What challenges do retail brands face with coalition loyalty programs?

Emerging QSR Loyalty Trends For 2025

1. Hyper-Personalization

2. One-Size Fits All, Does Not Fit All

3. Gamification

4. Digital is the Future, but Don’t Restrict Customers

How Top Restaurants Are Winning with QSR Loyalty Programs

MyMcDonald’s Rewards

Chick-fil-A One Rewards

Domino’s Pizza Piece of the Pie Rewards

Carrabba’s Dine Rewards

Why QSR Loyalty Programs Are a Must-Have in 2025

FAQs

1. What are QSR loyalty programs, and how do they work?

2. How can fast food loyalty programs improve customer retention?

3. What is QSR experience, and why does it matter?

4. What features should I look for in restaurant loyalty software?

5. How does gamification improve QSR loyalty programs?

Cut through the Clutter with Data-driven Marketing

CAMPAIGN 1: Global F&B brand boosts conversion rates with Targeted Ramadan Campaigns

CAMPAIGN 2: Leading Luxury Brand generated incremental sales with Personalized Promotions

CAMPAIGN 3: Major Kid’s Apparel Brand generated 3X ROI with Segmented Facebook Ramadan Campaigns

CAMPAIGN 4: Leading Luxury Homeware brand generated incremental sales with Personalized Social and Mobile App Promotions

CAMPAIGN 5: UAE’s leading Jeweler generated incremental sales with Micro-Segmentation and Personalization

Wrapping Up

Why BluChip is a Game-Changer:

Indigo: A Rising star in the global airline industry

1. Advanced personalization to improve customer satisfaction and conversion

2. Omnichannel integration to reach your customers everywhere

3. Crafting seamless experiences that go beyond transactions

4. Taking Data-Driven Decisions for Better Results through advanced insights

5. Differentiated Rewards Tailored Specifically to Your Customers

6. Building trust through data privacy

7. Employee Engagement: The Underestimated Loyalty Driver

8. Investing in a trusted and reputed loyalty program

Top Loyalty Programs in Indonesia

1. Starbucks- QSRs Partnership with SuperApps

2. Shopee – E-commerce Giant’s Approach to Streamlining Customer Engagement & Retention

3. Erajaya’s Eraclub – Club-based Multi-brand Loyalty Program

4. Wardah Beauty – Cause-driven B2B Loyalty Program

5. The Mulia – Creating Unforgettable Customer Experiences with Tiered Membership Program

6. Mapclub – Fashion & Lifestyle Brand Offers Phygital Rewards Program

7. Many more- Garuda Miles, BCA Rewards, Hypermart’s Poin Xtra

FAQs

1. What are the most popular loyalty programs in Indonesia?

2. How do loyalty programs benefit Indonesian customers?

3. What makes a good loyalty program for Indonesian businesses?

4. Why are loyalty apps becoming popular in Indonesia?

5. How can businesses in Indonesia implement a successful loyalty program?

About Capillary Technologies

The Rise of B2B E-commerce Trends

1. Personalization Through Smart Customer Analytics