Capillary Technologies and Partners Shine at 2025 Loyalty360 Awards during Loyalty Expo

Dallas, Texas, June 18, 2025 – Capillary Technologies, a global leader in AI-powered customer loyalty solutions, raised the bar at the 2025 Loyalty360 Awards and Best in Class Awards, held during Loyalty Expo 2025 in Orlando. The company earned top honors for its innovation, strategic consulting, and excellence in helping brands create impactful, customer-centric loyalty programs.

 

Capillary Technologies was recognized with the following honors: 

 

  • Platinum Award – 360 Degree (Supplier)
  • Best in Class – Customer Loyalty Technology
  • Best in Class – Agency Partner

Industry Leader Capillary Technologies Receives Platinum and Best in Class Awards for Advanced Customer Loyalty Technology & Services

Industry Leader Capillary Technologies Receives Platinum and Best in Class Awards for Advanced Customer Loyalty Technology & Services 

 

“We are honored to be recognized by Loyalty360 for our ongoing commitment to advancing customer loyalty strategies,” said Jim Sturm, President of North America, Capillary Technologies. These accolades are a testament to the innovation and dedication our teams bring every day, helping brands deliver deeper, more personalized engagement with their customers.”

 

Capillary’s Brand Partners also earned top accolades, underscoring the collaborative success in delivering outstanding loyalty experiences:

 

  • NASCAR:
    • Platinum Award – Loyalty Program Design

 

  • ThriftBooks:
    • Gold Award – Creative Campaign & Communications
    • Silver Award – Technology & Trend
    • Bronze Award – 360-Degree (Brand)
    • Best in Class – Program Vision

 

  • TELUS:
    • Silver Award – Corporate Social Responsibility & Loyalty
    • Best in Class – Loyalty Program Partnerships
    • Best in Class – Customer Centricity

 

“The success of our brand partners demonstrates the impact of our collaborative approach to loyalty program development,” continued Jim Sturm. “Together, we’re redefining excellence in loyalty and setting new standards for customer engagement across industries..”

 

“Capillary continues to be a strong force in the customer loyalty industry. Earning the Platinum Award in the 360 Degree Supplier category, along with Best in Class honors for Customer Loyalty Technology and Agency Partner, highlights the strength and versatility of their solutions. The recognition their clients received at this year’s Loyalty360 Awards is a great reflection of the impact Capillary has in helping brands grow and enhance their loyalty strategies.” – Mark Johnson, CEO, Loyalty360

 

The Loyalty360 Awards, held annually at the Loyalty Expo, recognizes brands and solution providers that are transforming customer loyalty through measurable results, innovation, and deep engagement.

 

 

For the full list of winners, visit: Loyalty360 2025 Award Winners

 

 

To elevate your brand with our award-winning loyalty program software, click below!

 

 

The Great Loyalty Reboot: Playbook for Philippine Retailers

Before Loyalty Was a Program, It Was a Promise—Especially in the Philippines

In the Philippines, loyalty was never about points or perks. It lived in everyday rituals—the suki system, the quiet trust between buyer and seller. Less transactional, more relational. More instinct than initiative.

 

Today, loyalty is a billion-peso business. The market is projected to hit US$594.3 million by 2025, growing at 17.5% annually, making it one of Southeast Asia’s fastest-growing ecosystems. Brands are rushing to build platforms and partnerships.

 

But something’s off.

 

Consumers are enrolling—but not engaging. Points are earned, but left unused. Brands are going digital—but missing the emotional spark. Loyalty has become more measurable—but not more meaningful.

 

Why This Matters Now

loyalty in philppines

 

The Real Loyalty Gap Isn’t About Capability!

 

Yes, loyalty platforms today are sophisticated. They personalize journeys, automate offers, track omnichannel behavior, and deliver real-time rewards at scale. Filipino consumers are ready.

 

But while the infrastructure is world-class, the experience often isn’t.

 

Many programs are copy pasted from global playbooks. They may be efficient, but they’re often emotionally tone-deaf. Because in the Philippines, loyalty isn’t just a system. It’s a sentiment.

 

Loyalty for Filipinos is grounded in three key principles:

 

  • Trust: Don’t overpromise. Don’t spam.
  • Reciprocity: Bigay mo, bigay ko.
  • Recognition: Not just points — Acknowledgment.

 

These aren’t nice-to-haves. They’re non-negotiables. Programs that miss them may get sign-ups, but they won’t win hearts.

 

Loyalty That Listens, Feels, and Reciprocates

 

With 57% of consumers more likely to spend on brands that personalize, one thing is clear: emotional resonance drives results.

 

In the Philippines, loyalty isn’t earned through points alone—it’s rooted in understanding. Filipinos seek recognition over rewards, connection over convenience. That takes more than localization—it takes cultural intelligence: knowing the rhythms of daily life, regional holidays, shifting languages, and subtle rituals that make loyalty feel personal.

 

But relevance alone isn’t enough. Around 85% of consumers expect seamless experiences across platforms, yet many brands still treat online and offline as silos. The result? Lost context—and lost customers.

 

That’s where Capillary Technologies steps in—blending deep cultural insight with robust loyalty tech to help brands shift from transactional to transformational.

 

Let’s break down how:

loyalty in the philippines

 

What the Best-in-Class Are Doing Differently

Loyalty in philippines

These aren’t just programs. They’re ecosystems. And they’re succeeding because they speak to Filipino behavior, not just business logic.

 

The Four Big Moves That Matter

 

1. Acquisition

Goal: Get the right customers into your ecosystem—not just sign-ups, but high-value members.

What to Do:

  • Leverage Mobile-First Sign-ups: Simplify onboarding via QR codes, SMS, GCash/Grab integrations, and app-based flows. Don’t ask for too much upfront—focus on frictionless access. 
  • Offer High-Perceived Value at Entry: Provide instant gratification—bonus points, welcome vouchers, or gamified entry rewards like a spin-the-wheel or scratch card. 
  • Use Social Commerce for Lead Capture: Partner with influencers or offer sign-up prompts through Facebook Shops, Instagram Stories, and TikTok Live. 
  • Target the ‘Suki’ Spirit: Incentivize repeat visits from casual shoppers to transition them into known, identifiable loyalty members.

2. Attention

Goal: Get members to notice, remember, and revisit your brand regularly.

What to Do:

  • Omnichannel Presence, Omnipresent Messaging: Use SMS, Messenger, Viber, and push notifications based on customer behavior—not just email. 
  • Celebrate Local Moments: Run hyper-local campaigns during Ber months, regional festivals (Sinulog, Kadayawan), and national events like Buwan ng Wika or Independence Day. 
  • Tier Visibility and FOMO: Show users their current tier progress with nudges like “Only ₱500 away from Silver status!” to keep attention alive.

3. Engagement

Goal: Build relationships that go beyond transactions.

What to Do:

  • Automate Lifecycle Journeys: Use Capillary’s Engage+ or similar tools to send timely nudges—like birthday treats, reactivation prompts, or low balance reminders. 
  • Gamify the Experience: Introduce interactive mechanics—stamp cards, referral rewards, lucky draws—to turn loyalty into play. 
  • Use Points as a Utility, Not Just a Reward: Allow redemptions for things they care about: telco load, groceries, transport credits, or even GCash conversion. 
  • Personalize, Don’t Generalize: Use AI tools to recommend products, content, and offers based on actual behavior. A freebie they’ll love is worth more than a generic promo they’ll ignore.

4. Advocacy

Goal: Turn customers into vocal fans and brand ambassadors.

What to Do:

  • Create Influencer Loyalty Tiers: Recognize high-engagement customers or micro-influencers with special access, previews, or co-creation opportunities. 
  • Enable Easy Sharing: Embed “Share your reward” or “Refer and Earn” features into apps and mobile wallets—Filipinos love to share good finds. 
  • Showcase User Stories: Feature real customers in campaigns—whether on social media or in-app. Authentic, localized testimonials resonate more than polished brand ads. 
  • Create Recognition Moments: Celebrate milestones (e.g., “You’ve been with us for 1 year!”), top spenders, or most loyal users. Pinoy consumers value acknowledgment—make them feel seen.

The Endgame: It’s Not Retention. It’s Relevance

 

The brands that win in 2025 won’t be the ones with the biggest tech stack. They’ll be the ones that make loyalty feel human again and resonate deeply.

 

They’ll replicate suki-level warmth in every digital touchpoint. They’ll treat customer data not as a segmenting tool, but as a storytelling canvas. They’ll shift focus from transactions to trust, and from points to purpose.

 

Because in the Philippines, loyalty isn’t just a marketing tactic. It’s cultural currency.

 

And the brands that understand that? They’ll be the ones customers return to—not out of obligation, but out of genuine connection.

 

Co-Creating Loyalty: Why Modern Brands Are Joining Forces to Drive Deeper Engagement

News Flash- Loyalty isn’t a one-brand show anymore! 

 

As customer expectations evolve and the battle for attention intensifies, brands are learning an important truth: no matter how good your loyalty program is, its full potential is unlocked only through strategic partnerships.

 

From retail giants to travel titans, businesses are joining forces not just to cross-promote, but to co-create value.  These aren’t your typical affiliate deals or tactical tie-ups. They’re long-term alliances built on shared goals, complementary capabilities, and a mutual desire to make loyalty more rewarding, engaging, and profitable. 

 

Let’s explore how these partnerships are reshaping loyalty—and what your brand can learn from them. 

Why Strategic Partnerships Matter in Loyalty Today

 

A strategic loyalty partnership is more than a marketing handshake. It’s a deeply integrated relationship where two or more brands align their assets—think rewards, data, channels, and technology—to build a richer, more seamless value proposition for.

 

Why now?

 

Because customers are omnipresent—and they want their loyalty programs to be, too. A recent Deloitte study revealed that 57% of consumers are more loyal to brands that offer rewards across multiple aspects of their lifestyle

 

Whether it’s booking a flight, shopping for groceries, or signing up for insurance, they expect to earn, redeem, and engage without friction.

 

This is where partnerships shine: they break loyalty programs out of silos and into ecosystems, offering customers more ways to interact—and more reasons to stay.

 

The Partnership Payoff: Why Brands Team Up

 

Strategic partnerships in loyalty aren’t just about warm fuzzies. They drive tangible business impact across four key dimensions: 

 

1. More Value for Members

A single brand can only offer so much. But when loyalty ecosystems are expanded, members gain more ways to earn and redeem.

 

Case in point: Qantas x Woolworths.
By linking frequent flyer miles with everyday grocery purchases, the partnership gave customers the ability to earn flight points just by buying milk. That’s everyday relevance—and serious stickiness.

 

2. More Frequent Engagement

Multi-brand loyalty programs increase the number of customer touchpoints, embedding themselves deeper into the customer’s lifestyle.

 

A Mastercard study found that member engagement increases by 30% when customers can earn rewards across categories.

 

Example: Air Canada’s Aeroplan.
Members can earn points across flights, hotels, car rentals, financial products, and even at Starbucks.

 

3. Faster Member Base Growth

Partnerships unlock access to a qualified, high-intent audience: your partner’s customers.

 

Co-branded acquisition campaigns, referral programs, and joint promotions accelerate member acquisition, especially when the brands share aligned customer values.

 

Example: Emirates Skywards x Marriott Bonvoy.
This partnership allows reciprocal point transfers and elite status accelerators, tapping into affluent, travel-oriented customer bases on both sides.

 

4. Better Program Economics

Shared infrastructure, pooled marketing budgets, and co-funded campaigns reduce the cost of engagement per member. More critically, partner-funded loyalty points help maintain perceived value without increasing your internal costs.

 

Example: Tata Neu.
India’s super app enables cross-brand redemptions across Tata’s own businesses—Taj Hotels, BigBasket, Croma—and select third-party merchants. The result? Higher value perception without inflating any one unit’s costs.

 

What a Successful Loyalty Partnership Looks Like

 

Strategic partnerships

 

Let’s revisit Qantas and Woolworths—an iconic win-win-win.

 

The partnership delivered exceptional outcomes across customer satisfaction, engagement, and brand equity. But here’s the kicker: when Woolworths ended the partnership in 2015 to run its own standalone loyalty program, customers revolted. The backlash was swift and intense, forcing Woolworths to reinstate the partnership within a year.

 

That’s not just a success story. That’s market validation.

 

 

The Hard Part: Making Partnerships Actually Work

 

Signing a deal is easy. Sustaining a partnership? That’s where the heavy lifting begins.

 

Here’s what strong loyalty partnerships have in common:

 

  • Deep due diligence: Understand your partner’s audience, financials, and technical capabilities.
  • Clear roles: Define ownership of CX, tech, marketing, data, and day-to-day ops.
  • Shared risk and reward: Co-fund pilots, align KPIs, and validate member appeal before scaling.
  • Flexible contracts: Be prepared to pivot as markets and behaviors evolve.

 

The New Era: Emerging Models of Loyalty Partnerships

 

Today’s most innovative loyalty partnerships are moving beyond traditional co-branding. They’re creating integrated, value-driven ecosystems that embed loyalty into everyday life. Here are four models leading the charge:

 

1. Event-Driven Ecosystems

Loyalty isn’t just about points—it’s about memorable experiences. Brands are now building immersive engagement opportunities around major cultural events.

Example: Marriott Bonvoy Moments
Members can redeem points for exclusive access to Formula 1 races, including VIP paddock tours and luxury accommodations. It transforms a hotel booking into a once-in-a-lifetime event.

 

2. Embedded Loyalty

Loyalty is being seamlessly woven into third-party platforms, delivering frictionless engagement where customers already are—no extra apps, no extra steps.

 

Example: Chase x Lyft
Sapphire cardholders automatically earn 5x points on Lyft rides, directly within the Lyft app. No need for separate enrollments or activations—loyalty is built into the ride experience.

 

3. Sustainability-Driven Rewards

Eco-conscious consumers want brands to align with their values. Loyalty programs are responding with incentives for sustainable behaviors.

 

Example: Etihad Guest
Members earn extra miles for reducing baggage weight, offsetting carbon emissions, or donating miles to sustainability-focused initiatives. It’s purpose-led engagement with real-world impact.

 

4. Branded Services on Partner Infrastructure

Some brands are extending their value proposition by launching adjacent services, like insurance or financial products, without owning the backend infrastructure.

 

Example: Grab x Chubb
Grab offers travel, health, and gadget insurance directly within its app, fully branded as Grab. While the backend is powered by Chubb, the customer relationship remains 100% Grab’s.

 

Strategic partnerships in loyalty programs

 

Final Takeaway: Loyalty is a Team Sport Now

The era of going solo is over. If you want your loyalty program to be relevant, resilient, and revenue-generating, partnerships aren’t optional—they’re strategic.

 

So don’t just ask, “What rewards should we offer?”
Ask, “Who can we partner with to create real, everyday value for our customers?”

 

Because in the new age of loyalty, collaboration isn’t just a trend—it’s the future.

 

 

 

 

Why Loyalty Programs Need to Be Agile in Times of Tariffs and Market Volatility

New U.S. tariffs are back in the headlines—and once again, brands are scrambling to rethink pricing and cost structures. But let’s be honest: this isn’t a one-off. Trade restrictions, inflation, and supply chain disruptions have become the new normal. In this new reality, agility isn’t a nice-to-have—it’s how you stay in the game.

 

71% of global executives say their companies have been significantly impacted by trade restrictions or tariffs in just the past year (KPMG Global Supply Chain Trends Survey, 2024).

 

So, where do loyalty programs fit into all this? Right at the center. They’re no longer just about customer retention or feel-good perks. When designed right, loyalty programs become strategic levers—helping brands maintain value perception, influence customer behavior, and create stability in a volatile world.

 

When Pricing Gets Distorted, Loyalty Helps Rebalance It

 

Tariffs and rising costs force tough decisions: pass the increase to customers or absorb the hit to margins. Either way, brand value takes a hit—unless loyalty steps in.

 

Responsive programs can soften the blow by:

 

  • Offering cashback, bonus points, or limited-time rebates on affected SKUs
  • Spotlighting tier benefits that deliver more value during moments of price sensitivity
  • Targeting price-conscious customers with relevant, behavior-based incentives
  • Replacing blanket discounts with high-perceived-value rewards like exclusive access or early product launches

But timeliness is everything. These tactics only work if your loyalty platform can activate them quickly, often at the regional or SKU level, with minimal development time or downtime.

 

Use Loyalty to Nudge Demand in Smarter Directions

 

When external factors disrupt sourcing or fulfillment, loyalty can do more than retain customers—it can redirect them. Leading brands are using loyalty programs to:

 

  • Promote domestic or in-stock product lines with bonus earn rates
  • Encourage channel shifts (e.g., app or direct-to-consumer) through exclusive rewards
  • Launch new SKUs or partners with built-in loyalty incentives
  • Offer digital-first rewards, like virtual experiences or subscriptions, that avoid fulfillment delays
  • Power dynamic catalogs that flex based on inventory or region

These strategies need more than good ideas. They require infrastructure that can change earn/burn rules on the fly, integrate new content, and deploy personalized offers, without weeks of lead time. In short, your loyalty platform should be as agile as your supply chain.

 

Loyalty Has to Evolve with Consumer Behavior

 

Markets shift—and customers shift with them. Volatility creates unpredictable behavior. Consumers become more cautious, quicker to try new things, and more willing to switch for convenience or savings.

 

76% of consumers say their brand loyalty is harder to maintain due to rising prices and shifting priorities (Salesforce State of the Connected Customer Report, 2024).

 

To keep up, your loyalty program should be just as fluid:

 

  • Update campaign logic without lengthy development cycles
  • Seamlessly integrate new reward partners, catalogs, or categories
  • Enable real-time personalization and region-specific offers across channels
  • Test new formats—flash redemptions, rotating offers, or surprise-and-delight drops

 

Take Domino’s, for example. The brand revamped its loyalty program and launched a strategic delivery partnership with Uber Eats to meet shifting consumer preferences. The result? A 2.8% increase in U.S. sales. (Source)

Agility isn’t just about speed—it’s about context. And it’s about empowering your teams to respond in real time when markets, behavior, or operations change overnight.

 

Loyalty Is a Stabilizer

 

In times of uncertainty—economic, political, or operational—your loyalty program becomes a constant. It’s a direct, always-on connection to your best customers. And when managed thoughtfully, that connection builds trust.

 

The strongest programs:

  • Reinforce value perception when pricing is unstable
  • Deliver timely, behavior-based incentives that help the business pivot
  • Show empathy—pausing point expiry, enabling donation matching, or highlighting sustainability rewards
  • Build long-term engagement through consistent, emotionally intelligent experiences

In unpredictable markets, loyalty becomes the anchor. Not flashy. Just steady.

 

Loyalty Partnerships Are No Longer Optional

 

In tariff-heavy, resource-limited environments, brands can’t afford to go it alone. Strategic partnerships and loyalty coalitions aren’t just smart—they’re necessary. They help brands expand reach, increase relevance, and add value across ecosystems.

 

Examples include:

  • A fashion brand offsetting margin pressure by offering telecom reward swaps
  • A travel brand partnering with fintech to ease rising airfare through lifestyle perks
  • An F&B brand tapping into fuel rewards to deliver real-world savings

 

These aren’t gimmicks. They’re strategic diversification plays. And they only work if your loyalty platform supports easy integrations and flexible configurations.

 

How Capillary Can Help

 

Capillary Technologies empowers brands to build agile, AI-powered loyalty programs that respond in real time to market volatility. With modular solutions like Loyalty+, Engage+, and Insights+, brands can quickly launch targeted campaigns, adapt earn-and-burn rules, and personalize engagement across channels—ensuring customer trust and value stay intact, even when the market doesn’t.

 

The Strategic Takeaway

 

Tariffs, supply chain shocks, and shifting consumer behavior aren’t going away. But loyalty programs—when built on agile, responsive platforms—can help brands navigate these changes with confidence.

 

The best programs today aren’t static or transactional. They’re living ecosystems—designed to move with the business, respond to market forces, and build real-time trust.

 

Because when everything else is in flux, loyalty can be your most stable and strategic lever.

SuperApps in 2025: The Powerhouses of Customer Loyalty and Engagement

In an era where mobile commerce has become the centerpiece of retail innovation, SuperApps are rapidly reshaping how brands engage, reward, and retain customers. According to MIT’s Beyond the Checkout Cart report, 80% of shoppers check online prices—and one-third do so from their phones while in-store. Today’s shopper is not just mobile-first—they’re multi-channel, information-hungry, and experience-driven.

 

This behavioral shift has accelerated the rise of SuperApps: unified digital ecosystems that offer everything from shopping and payments to entertainment and wellness—all within a single platform. SuperApps aren’t just apps; they are operating systems for consumer engagement.

 

Why SuperApps Work: A Customer-Centric Growth Engine

 

Unlike standalone apps that offer limited functionality, SuperApps operate within a composable business model—bringing together multiple services like food delivery, electronics, apparel, payments, healthcare, and even travel under one umbrella.

 

TATA Neu, one of India’s most successful SuperApps, embodies this model. As Pratik Pal, Chairmans Office – Data and AI initiative at Tata Group (ex-CEO of Tata Digital), notes, “TATA has a unique mix of customer-facing brands in fashion, electronics, pharmacy, and lifestyle. With a national customer base of 120 million, it made perfect sense to consolidate these under one digital experience.”

 

The integration of a unified rewards system like NeuCoins makes every transaction more meaningful. Whether a user is buying a smartphone or booking a salon appointment, rewards are seamlessly earned and redeemed across categories. This creates a sticky ecosystem where each interaction unlocks more value, driving repeat engagement and brand loyalty.

 

 

Loyalty as the Core Philosophy

 

At the heart of the SuperApp model is loyalty—not just as a program, but as a philosophy. “We believe loyalty is much more than rewarding customers with some formulaic points in exchange for a transaction,” says Harveer Singh, CBO at TATA Digital. This thinking led to the creation of NeuPass: the pass to a good life, which offers members 5% back on every transaction with no redemption restrictions.

 

This model—“earn and burn everywhere”—is becoming a blueprint for how modern loyalty must evolve: seamless, cross-brand, and omnichannel.

 

Building a SuperApp in 2025: What It Takes

For brands aspiring to build a SuperApp, the playbook goes far beyond app development. According to Pratik Pal, “Technology should never be taken for granted.” A successful SuperApp must be engineered for massive scale, high concurrency, multi-device usability, and real-time responsiveness.

 

In 2025, cloud-native infrastructure, AI-powered personalization, and real-time analytics are not just nice-to-haves—they are non-negotiables. Add to that evolving use cases like voice commerce, predictive shopping, and contextual offers, and it becomes clear that choosing the right tech partners is critical.

 

Customer Data: The Strategic Differentiator

 

One of the greatest advantages of SuperApps is the ability to gather consented, cross-category customer data to build 360-degree profiles. When a customer buys groceries one day, books a doctor’s appointment the next, and shops for shoes a week later—all within one platform—it creates a unified view of preferences and behavior.

 

With increasing scrutiny on data privacy, especially across sectors like finance and healthcare, brands must implement differentiated data governance models. TATA Digital has already adopted a consent-first architecture, ensuring each brand under its umbrella adheres to the appropriate privacy laws and sectoral regulations.

 

Key Consumer and Digital Trends Shaping SuperApps in India

 

India’s SuperApp evolution is also being propelled by trends from Tier 2 and Tier 3 markets. With the Digital India initiative deepening its reach, these cities are becoming hotbeds for mobile commerce growth.

 

Here are some 2025 trends to watch:

 

  • Instant Commerce: The push for 20-minute deliveries is real, but it hinges on automation, smart logistics, and robust supply chains. “This space will see massive transformation as human effort gives way to tech,” predicts Pratik.

  • Localized UX: SuperApps are increasingly using vernacular languages, regional payment modes, and local festivals to personalize engagement.

  • Sustainable Experiences: Consumers are demanding sustainable packaging, green delivery options, and ethical sourcing—integrated seamlessly into digital journeys.

  • Embedded Payments & BNPL: Fintech integration within SuperApps is making credit, insurance, and micro-lending more accessible across demographic segments.

 

The Bottom Line

 

SuperApps are no longer a concept—they’re a competitive necessity. As customer expectations evolve from transactions to experiences, the brands that succeed will be those that build ecosystems, not just apps. Whether it’s through flexible loyalty models, privacy-first personalization, or infrastructure that scales with behavior, SuperApps are setting the gold standard for digital growth.

The future isn’t app by app. It’s one platform, infinite possibilities.

Best Practices From Top Loyalty Programs in Malaysia

The loyalty landscape in Malaysia is not what it was a year ago. With rising digital adoption, a maturing e-commerce ecosystem, and increased customer expectations, brands are being challenged to rethink what loyalty really means.

 

From physical card programs to AI-powered mobile apps, loyalty is shifting from transactional rewards to creating meaningful, omnichannel experiences.

 

A Snapshot of the Malaysian Loyalty Market in 2025

Malaysia’s loyalty market is now estimated to be worth US $472 million, and it’s projected to grow at a CAGR of 13–16%, reaching nearly US $784 million by 2029. This growth is powered by mobile-first engagement, digital wallets, and increasingly personalized, flexible rewards systems.

 

Smartphone penetration has surpassed 90%, and mobile wallets like Touch ’n Go eWallet (with over 15 million users) and GrabPay are not just payment tools—they’re becoming primary touchpoints for engagement and rewards.

 

Customers today are mobile, connected, and expect personalized offers, instant gratification, and seamless experiences across channels.

Promotions Still Matter—but They’re Not Everything

 

Historically, Malaysian retail markets have leaned heavily on promotions—42% of sales in 2019 were driven by price discounts. While this continues to hold weight, over-reliance on blanket offers has started to lose effectiveness.

 

Instead, brands are now blending smart promotions with personalized incentives, using loyalty data to selectively drive upsell and cross-sell, rather than defaulting to discounts.

Loyalty in a Super-App and Omnichannel World

 

In a market where 81% of Malaysians consume both digital and traditional media, the loyalty experience must now span across in-store, mobile apps, e-wallets, and even social commerce platforms like TikTok Shop, which has seen steady growth in 2025.

 

Malaysian consumers expect frictionless brand engagement across:

  • QR code redemptions
  • Personalised push notifications
  • In-app rewards catalogs
  • Real-time offer activations
  • Embedded loyalty in payment flows

 

Top loyalty programs in Malaysia

 

How do brands and loyalty programs in Malaysia successfully transform the occasional customer into brand loyalists? Below, we peek into the inner workings of some of Malaysia’s top loyalty programs.

 

  • Bata Club 

Bata

 

What they’re doing right:

Bata Malaysia has mastered the art of combining simplicity with relevance. In a market recovering from pandemic-driven caution and value-seeking behavior, Bata Club’s frictionless, cardless rewards program keeps things easy—but powerful. Instead of complex point structures or app-only rewards, it offers a microsite for real-time access and simple incentives that make sense: a sign-up voucher, birthday reward, and lifetime membership for spending just RM 50.

Key features that work:

  • Instant gratification: RM 10 just for joining, RM 15 on birthdays—easy to remember, easy to use.

  • Lifetime membership lowers barriers to entry and increases long-term stickiness.

  • Their Dynamic Voucher System (DVS) uses real-time purchase data to send personalized offers that drive the next sale.

What other brands can learn:

  • You don’t need high complexity to drive loyalty. A lean, well-targeted program with real-time personalization can outperform bloated systems.

  • Lifetime memberships, paired with visible value early in the journey, can lead to better acquisition and repeat rates.

  • If your category is frequency-sensitive (like fashion or footwear), real-time next-best offers using DVS-style engines can be a conversion game-changer.

 

 

  • AEON MEMBER Card

 

AEON Loyalty

 

What they’re doing right:


AEON has taken its legacy as one of Asia’s biggest retailers and built a loyalty program that is both familiar and forward-looking. While most of their loyal customer base still shops offline, AEON has successfully extended loyalty into digital with the AEON Wallet app, delivering convenience and security to members at scale.

Key features that work:

  • The Member Day concept gamifies shopping frequency by concentrating discounts on certain dates, driving predictable spikes in store traffic.

  • The AEON Wallet offers biometric login and real-time redemption, making the transition to digital intuitive even for offline-first shoppers.

  • A clear tier upgrade system (Member Plus) creates aspiration and unlocks more value for repeat shoppers.

What other brands can learn:


When done right, digital transformation doesn’t alienate loyal offline shoppers—it empowers them. AEON shows that pairing in-store incentives with simple, secure digital experiences creates a best-of-both-worlds loyalty model. Brands can take note: the future is omnichannel, but success starts with understanding where your customers are today.

 

  • Caring Pharmacy

Caring Pharmacy

 

What they’re doing right:


Caring Pharmacy stands out for how naturally its loyalty program integrates into everyday life. Instead of flashy gimmicks, they focus on relevance—offering real benefits around health, wellness, and education. The app isn’t just a loyalty hub; it’s a customer care experience.

Key features that work:

  • Barcode-based point earning and redemption ensures frictionless use at checkout.

  • The app combines loyalty, health content, and workshop promotions in one place—building utility into the program.

  • Personalized push notifications and rotating banners keep members updated and engaged.

What other brands can learn:


Utility and simplicity matter. Especially in healthcare and wellness, where trust and ease are non-negotiable. Caring Pharmacy shows that loyalty isn’t just about discounts—it’s about being genuinely helpful. Other brands should think about how to deliver real value in their customers’ daily routines.

 

  • Watsons VIP Card

 

Watsons

 

What they’re doing right:


Watsons has turned its VIP program into a lifestyle membership. It’s not just about product discounts—it’s about rewarding customers across categories, from healthcare to dining. The program’s strength lies in its ability to embed itself into a member’s broader lifestyle.

Key features that work:

  • Touch ‘n Go functionality makes the VIP card useful even beyond Watsons stores, boosting daily engagement.

  • Seasonal and birthday-based rewards are emotionally resonant and drive timed engagement.

  • Wellness content adds a layer of personalization that goes beyond purchases.

What other brands can learn:

Think beyond transactions. Watsons proves that loyalty works better when it’s embedded into the customer’s life, not just their shopping cart. Partnerships, lifestyle perks, and timely engagement can help loyalty programs stay top-of-mind even between purchases.

  • Petron Miles Card

 

Petron Miles

 

What they’re doing right:


Petron’s loyalty program is rooted in flexibility. By eliminating point expiry, they reduce pressure and allow customers to engage at their own pace. That sense of freedom, paired with value-added services, makes the program feel less like a scheme and more like a genuine benefit.

Key features that work:

  • Points never expire, encouraging long-term accumulation and reducing the “use it or lose it” stress.

  • Members earn across multiple categories—from fuel to flight miles and insurance renewals.

  • Value Card members receive roadside assistance and insurance perks, making it more than just a fuel card.

What other brands can learn:


Loyalty doesn’t have to end at the core product. Petron shows that cross-category partnerships and practical benefits create more stickiness than points alone. Brands should think about how to extend their loyalty impact into the customer’s broader ecosystem.

Wrap Up

 

Malaysian consumers have become more discerning, digitally mature, and value-driven. What they expect from loyalty programs in 2025:

✅ Easy-to-use mobile apps
✅ Personalized rewards, not just discounts
✅ Cross-channel experiences
✅ Fast, transparent redemptions
✅ Programs that align with their values

As digital transformation continues across sectors, brands that can combine strong customer analytics with action-driven loyalty design will stand out—and stay top of mind.

 

 

People also ask  

 

1.What are the most successful loyalty programs in Malaysia?

The most successful loyalty programs in Malaysia include those by AirAsia, Petronas, and Maybank, which offer innovative rewards and seamless customer experiences through advanced loyalty management platforms.

 

2.How can Malaysian businesses create effective loyalty programs?

businesses can create effective loyalty programs by using customer data to personalize rewards, integrating loyalty programs with digital marketing strategies, and offering exclusive benefits to loyal customers.

 

3.What are the key elements of a successful loyalty program in Malaysia?

Key elements of a successful loyalty program in Malaysia include personalized rewards, a user-friendly mobile app, regular engagement through email marketing, and partnerships with other brands to offer diverse benefits.

 

4.Why should Malaysian companies invest in loyalty program technology?

Malaysian companies should invest in loyalty program technology to enhance customer engagement, streamline operations, gain insights from customer data, and ultimately drive higher customer retention and sales.

 

5.How can B2B loyalty programs drive business growth in Malaysia?

B2B loyalty programs can drive business growth in Malaysia by building strong relationships with business partners, offering incentives for repeat purchases, and providing valuable data for improving business strategies