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By6 Min Read
July 07, 2023
The brand loyalty landscape in Indonesia has constantly been evolving. Though the pandemic led to a slowdown, retailers developed a unique ecosystem to serve demand-supply requirements in the market. First was the pandemic, and now due to the economic downturn, brands have difficulty keeping momentum. When retaining existing customers is turning tricky, brands are embracing innovative strategies to gain more brand fans.
The loyalty programs market in Indonesia will increase from US$775.5 million in 2021 to US$1470.9 million by 2026, per Research & Market’s report. During 2022-2026, the Indonesian loyalty market is expected to record a CAGR of 13.6%.
The consumer approach towards loyalty programs in Indonesia is not the same anymore (Read more about customer loyalty programs in Indonesia). Indonesians are now keener on instant gratification than collecting reward points over tenure. They are looking for seamless options to redeem their loyalty points.
To have a competitive edge, brands incorporate relevant strategies and identify trends to meet customer needs. Capillary has been helping brands address such concerns with its robust modularized product suite. Our data-driven, AI-powered, intelligent tech solutions assist brands across all segments to gain marketing intelligence to create ‘Wow’ customer experiences.
In this blog, you will learn about 7 renowned loyalty programs led by brands in Indonesia to earn more loyal shoppers.
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.
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.
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.
With Capillary’s AI-powered customer engagement platform, Erajaya served customers with membership models, 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.
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 Wardah Womenprenuer Community, they can sell products at attractive discounts and earn reward points as well. The brand has a range of products shopping for which they can redeem their points; you can check more on this here.
Mulia Privilege – The Mulia’s loyalty program designed is an invite-only loyalty programs 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 a period of 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.
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. Like 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).
The best loyalty program in Indonesia can be yours with Capillary’s loyalty technology product suite and global consultancy services of Brierley.
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 rewards program experience. To consult loyalty experts on designing a personalized loyalty program for your brand, contact our experienced team of loyalty marketers.
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