If your brand is planning to make inroads in this region, now is the time.
Globally, COVID -19 pandemic brought a massive & forceful shift from the offline-to-online market. Thailand’s increasing e-commerce market was no less as it witnessed a more significant number of mobile shoppers, roughly $15.8 billion in 2020. In fact, mobile shopping is expected to show a growth rate of 12% from here to $25 billion by 2023 in the region. Thailand also offers a gateway to both ASEAN & Asia-Pacific markets, which makes it a site for great business potential. Being the 22nd largest e-commerce market with revenue of USD 10 billion in 2021, Thailand contributed to 29% of the worldwide e-commerce growth rate. Mobile shopping experience & customer reviews on top shopping sites like JD, Shopee, Apple, Lazada, Kaidee, Amazon, Power buy, etc., too contributed majorly to the increasing rate of online shoppers. For online marketplaces like Lazada, customer loyalty has been one of the crucial parts.
As per the Global Loyalty Programs Survey in Q1 2022, Thailand’s loyalty program market is expected to reach US$ 1420.8 million in 2022 and US$ 2271.4 million by 2026. In Thailand, the loyalty programs market has shown tremendous growth for over a year. There is no better time than now to discuss loyalty programs & their evolutionary development in Thailand over the years.
Did you know that 44% of Thai shoppers purchase from businesses where they have a chance to earn rewards while shopping? As we move further, let’s talk about some of the successful loyalty programs in Thailand that worked for several brands. The trail to these loyalty programs can help you ideate loyalty programs for your organization.
Top Loyalty Programs in Thailand
1. GrabRewards by Grab
Southeast Asia’s leading transportation & mobile payments platform, Grab, announced its reward program in 2017. With a network of more than 150 top-tier merchants, including AirAsiaGo, Deliveroo, and Lazada, they acquired access to a comprehensive ecosystem of SEA’s customers. Grab is partnered with premium brands of Thailand like Central Group, Mister Donut, AuntieAnne’s, etc to let customers go cashless with GrabPay & earn rewards faster with GrabRewards. GrabRewards made Grab one of the most popular apps in Southeast Asia, with 55 million mobile app downloads. This step proved remarkable for GrabPay wallet & even for the partners, it’s been a real revenue driver deal. Grab lets its users climb the ladder of premium membership options with its tiered membership, earning more reward points and making cashless transactions.
2. The1 Card by Central Group
The1 claims to be Thailand’s largest loyalty platform that helps lifestyle brands and customers with its ecosystem of more than 1000 partners and 20000 service points. Several premium brands like Centara have leveraged and implemented successful Loyalty Programs with The1. One of the fantastic benefits The1 members get is the conversion of ecash coupons & transfer of reward points to other members. See how below mentioned brands implemented the The1 loyalty program.
- Centara – Centara hotel launched its The1 loyalty card on Valentine’s Day following the theme “Loyalty from the Heart.” The 4-tiered membership on this card lets the members strengthen their membership from Classic to Silver to Gold & to Platinum Elite. As the membership progresses, customer members could progress towards better rewards like free room, up-grades, early check-in & checkout, pre-registration, and much more. The best deal introduced by Centara was a merger of existing Central- The 1 Card to Centara- The 1 Card that gave them first hand reach to 4 million existing The1 Card users.
- SPOT – SPOT- The1 counts in the list of other successful loyalty programs for Central Retail with 7.2 million members. The combination of 2 loyalty cards in one & Central Retail Corporation allowed its members to shop & claim points while shopping from their eight business units. Its welcome pack comes for 1195 Baht, members can redeem points, and get cashback & cash vouchers. Additional advantages of The1 Card come in handy here to meet the demands of its members.
3. Esso Smiles by Esso Fuels
Esso Fuels Thailand runs numerous loyalty programs under the Esso Smiles. The major one is the Esso Smiles Driver Rewards program. The member can collect unlimited points in the card every time they opt to fuel up. The points are not only redeemable at fueling stations instead also in supermarkets, to shop for airline tickets, and while connecting with their alliance partners. They provide rewards for the additional activities and exclusive promotions. Moreover, they offer free 24- hour roadside assistance to ensure no one gets stuck due to repairing issues. Esso’s services extend to the fleet businesses in Thailand, as they provide Esso fleet cards.
4. Coffee Club Thailand by Minor International PCL
The Coffee Club Thailand is the digital wallet & loyalty app by Minor International PCL- one of the largest hospitality, restaurant, and lifestyle companies in the Asia Pacific Region. They offer a point-based loyalty reward system with a digital wallet to let the users instantly pay at the outlets in digital cash or with earned loyalty points. Their exclusive custom offers, birthday privileges, and premium gifts are meant to personalize the user experience of every club Rewards loyalty member.
Evolution of Customer Loyalty in Thailand
When you primarily invest in marketing, you place efforts on attracting interested potential customers for your product/service. Once you succeed in converting them, bringing them down the funnel, and making them the second time customers will definitely be more convincing than finding first-time shoppers.
By investing in retargeting, brands are not only making happier shoppers; but rather adding repeat sellers. In addition, satisfied shoppers automatically turn to your brand advocates and share the word about your offerings to their network of friends & relatives. To increase the engagement of these first-time shoppers, businesses across the globe are investing more in customer loyalty programs.
For customer loyalty, there are two determinants viz. Attitudinal Loyalty & Behavioral Loyalty.
Homer & Kahle 1988 mentioned the value-attitude-behavior hierarchy, which mentions that customers’ attitude drives their behavior.
You can see the change in business-customer interaction patterns also impacts customer loyalty. The shift to the digital world is one of the major reasons for the planning & implementation of e-loyalty programs. Market expansion in Thailand will contribute to a CAGR of 8% from 2021-to to 2025, as indicated by the Statista Digital Market Outlook. Regardless of the size of your company, if you want to sustain in the competitive Thai market & would like to increase the rate of your repeat shoppers, you will need a robust loyalty program in place.