Data has become the biggest asset for marketing giants today who are innovating heavily through the new normal. The shift to data-centricity, in terms of customer retention, has meant introducing advanced analytical loyalty solutions across the world’s largest markets. It entails doubling down on targeting precision and personalization efficiency like never before. In Southeast Asia, the Malaysian loyalty market has been growing consistently and exponentially over the past 5 years at a CAGR of over 12.5%. The expected value of the market is stipulated at $534 Mn in 2022 and is expected to compound to $848 Mn by 2026. As a result, leading brands across sectors are adapting niche data-driven loyalty practices to boost growth significantly. 

Sustainable relationships with Malaysian customers will very much depend on the data-backed CRM flexibility with which these brands power their loyalty programs in the coming years, too. Retail, Fintech and Food are the three largest industries that are seeing a huge uptick in sales on the back of data-driven loyalty solutions. However, what’s proving a crucial advantage and differentiator between them, at once, is the kind of data management programs that lie at the heart of customer loyalty. Business leaders across the board are unanimously agreeing to the benefits of these programs even for financial services that are late to join the bandwagon. It all goes to show that the current demand and popularity of multi-tier point-based loyalty cards and apps is at an all-time high. 

1. Car Loyalty Integrating Data-Powered Service Benefits

On the other end of the spectrum, the Malaysian automobile sector is seeing a swing in terms of customers benefiting from exclusive rewards out of efficient data-mining practices. For instance, in April 2021, Hyundai-Sime Darby Motors announced that the firm had launched two after-sales loyalty programs in Malaysia. The two service loyalty programs include the i-Care Plus and a Loyalty Card, which offers freebies and discounts to Hyundai customers whose data is readily collected across all online and offline communication and sales touchpoints. 

Notably, the i-Care Plus program is only available for vehicles that are four years or older. Customers can sign up for the program at any authorized center across the country for just RM20. The loyalty program provides a 10% discount on selected parts, a 5% discount on labor charges, and two free engine oil bottles and an oil filter. This is an entirely personalized discounting solution that is based on identifying cohorts of customers who would exclusively benefit from these customized discounts. These cohorts are then targeted through high-tech marketing intelligence platforms that ensure feedback and new customer insights into planning and implementing the next set of rewards and discounts.

The exclusivity principle drives the data-backed solution to become more robust over the long term as the refining of need and behavior-based insights continue.

Hyundai-Malaysian-Loyalty-Market

It is clear that the role of customer data is integral to the machinery of service loyalty for Hyundai which thrives on the back of its efficient tech stacks that refine and segment the customer data on a real-time basis. The Loyalty Card program offered by Hyundai comes with the ownership of any Hyundai model. The exclusive benefits offered under the program include a 20% discount on KLIMA Fresh and BlueChem products if bought during the particular month in which the promotions are run. Notably, customers are expected to receive more benefits in the future, including discounts on merchandise and higher trade-in value when the customer purchases another Hyundai vehicle.

2. Retaining Overlooked Customers with Data-Backed Omnichannel Campaigns

Alcohol and spirits distributor, Drinkies Malaysia, retained their customers with  “Bottoms Up! Forecasting Demand with Party Moments” campaign. The brand wanted to tap into those customers who they knew little about. To gain the highest top-of-mind, Drinkies wanted to take it to the next level by understanding deep data patterns, enriching performance, and generating higher demand so it can engage with these neglected consumers better. Drinkies brought the 3.5 million drinkers of alcohol in Malaysia a better online experience using a comprehensive CRM solution that uses data and enriched consumer profiles to market Drinkies products and services in a more effective way. Drinkies used DotDigital, an omnichannel marketing automation platform, that connects seamlessly to the Magento shop backend and allows for enriched data extraction, creating smart segments.

Drinkies-Malaysian-Loyalty-Market

3. Data-Driven SaaS Partnerships On the Rise

AI-powered loyalty programs are expected to boost the growth of loyalty program providers from the short to medium-term perspective in Malaysia. One major trend is, therefore, the collaboration between companies and leading tech partners to offer a single source of truth when it comes to collecting and utilizing customer data. The collaboration is founded upon the principle of allowing for much more flexibility while personalizing offers, promotions, rewards and discounts. By grouping together multiple rewards, moreover, new tech stacks work wonders to ensure that customers are given the full convenience and choice benefits that they need while purchasing products from one buyer and availing of benefits from the other. 

Bonus-link-malaysian-loyalty

Let’s take a closer look at how it all works. In June 2021, BonusLink, the multiparty loyalty card program provider, replaced its traditional marketing tools with intelligent customer analytics in order to create a single solution to interpreting customer data. This enables BonusLink to offer enhanced and personalized experiences to its loyal members while encouraging repeat purchases. This involves creating customer segments and refining that data flowing in from multiple platforms and marketing/sales channels through a single point of view. Beyond this point, the varied applications of AI-powered cognitive analytics ensure that the adtech and martech platforms that implement the communications around the program are equipped to customize the messaging according to unique customer needs and behavioral trends.

The Way Forward for Data-Driven Loyalty

All other sectors are also experiencing advancements of data-driven loyalty marketing in Malaysia. A leading provider of 4G LTE plans, YES, for instance, surprised competitors in the telecom sectors through its advanced data-backed loyalty solutions for customers based on their specific usage of mobile data packs over time. Taylor’s University used their student data records to effectively boost visibility by tailoring a rewards program to suit the specific needs of business students who had entrepreneurship dreams. Moreover, Carrefour launched integrated loyalty through a multi-point system designed heavily on the basis of customer mapping and in-depth purchase data analysis. Going forward, Malaysian loyalty is, thus, a unique space to watch out for when it comes to the most elaborate as well as nuanced data-driven programs that are redefining CRM strategies for the brands in the here and now.

Anupama Basu
Passionate about evolving marketing technologies, Anupama is a seasoned professional by day and writer by night. She has worked for the world's leading brands in the advertising and marketing industry for a while now, and won recognition for her projects. She hopes to deepen her sense of purpose by always offering the most relevant insights to her readers.