The majority of organisations in Asia-Pacific fail to leverage loyalty initiatives to drive further engagement during the customer lifecycle, according to a study by Collinson.
Of the survey respondents – who are decision-makers from organisations with revenue exceeding USD$300 million – 72% say they intend to increase spending to improve customer experiences in the next 12 months. Although the respondents understand and reward customers with relevant experiences at the right moments during customer lifecycles, the research found that many organisations fall short when it comes to personalisation of customer experience.
For example, 26% of surveyed organisations personalise all promotional offers. Australia has the highest percentage (41%) of positive respondents in APAC in this regard. Less than half (41%) of surveyed organisations track and analyse the interactions between their loyal customers and their brands with the aim of improving the overall loyalty experience based on personalised, relevant content. Mainland China has the lowest percentage (28%) compared with the highest percentage (74%) from Australia.
The research also reveals that 56% of loyalty practitioners in APAC conduct regular loyalty-specific market research to better understand who are their best customers. Singapore (70%) is the best-performing market, while Australia (65%) and Japan (58%) come second and third respectively. Meanwhile, Hong Kong is the lowest, with just 47% of the respondents doing so.
In APAC, only 18% of loyalty practitioners are providing member-only events for their loyal customers, compared to 25% globally. In Hong Kong, only 5% of respondents are offering such events and just 7% in China.
Only 30% of respondents are adopting experiential benefits in their loyalty programmes. Australia has the highest percentage (43%) among the surveyed markets in APAC, while less than one third (33%) of respondents provide their loyal customers with instant access to coupons and reward redemption, though close to half (47%) are currently using a points-based system for payment or redemption.
“Today’s consumers want to buy from brands that offer convenience, relevance and a positive experience. Incorporating the data insights on customer behaviour into the customer lifecycle engagement strategy will improve the success of a loyalty programme, strengthening its effectiveness and return on investment” concluded Mary English, executive vice president – APAC of Collinson.