Brands who succeed in building up a large base of loyal patrons often get several things right: from a great product offered at a competitive price point, through convenient purchase locations/options and reliable after-sales customer service support, to a generous customer rewards program.
In this article, we assess the potential of customer loyalty programs in helping brands in APAC grow their pool of loyal customers. In particular, we explore the proportion of consumers in key APAC markets who are drawn to such programs – how does this differ across generations, and what are the best ways for brands to reach such consumers?
How popular are customer loyalty programs in APAC?
Latest data from YouGov Profiles – an audience intelligence tool with over 2 million+ consumer data variables continuously updated ever week – shows that close to three-quarters (72%) of APAC consumers are loyalty program enthusiasts who:
- Are more loyal to brands where they are a loyalty program member
- Spend more money with brands where they are a loyalty program member
- Subscribe to loyalty programs each time they’re given the opportunity to
Regionally, interest in loyalty programs is highest in Australia (79%) and Thailand (76%) where over three-quarters of consumers are enthusiasts.
How does enthusiasm towards loyalty programs vary with age?
In Australia, enthusiasm towards loyalty programs is relatively higher among Millennials and Gen X, compared to Gen Z and Baby Boomers.
But in Indonesia and Singapore, a relatively larger proportion of younger consumers – Gen Z and Millennials – are loyalty program enthusiasts.
Meanwhile, in Thailand and Hong Kong, enthusiasm towards loyalty programs is mostly comparable across generations – but is relatively lower among Gen Zs in Thailand and Baby Boomers in Hong Kong.
How do loyalty program enthusiasts in each APAC market differ from your average consumer?
Consumers in Australia who are loyalty program enthusiasts are significantly more likely to agree that posters/billboards help them discover new products and services, compared to the general population.
They are also more likely to notice advertisements on the side of buses and on the internet. Notably, over half of loyalty program enthusiasts in Australia are not a fan of personalised advertisements.
Consumers in Hong Kong who are loyalty program enthusiasts are also significantly more likely to agree that posters/billboards help them discover new products and services, compared to the general population.
They are also more likely than the general population to patronise brands whose advertisements express views they agree with. Unlike their counterparts in Australia, however, loyalty program enthusiasts in Hong Kong are more likely to engage with personalised advertisements.
Email advertisements are significantly more likely to influence the purchase decisions of consumers in Indonesia who are loyalty program enthusiasts than the average consumer. With respect to online advertisements, loyalty program enthusiasts are also significantly more likely to engage with ads on social media sites than on regular websites.
Celebrity endorsements are also more likely to sway loyalty program enthusiasts in Indonesia, compared to the general population. However, loyalty program enthusiasts are significantly more skeptical about brands who express views on political and social issues.
Consumers in Singapore who are loyalty program enthusiasts are significantly more likely to notice advertisements displayed at bus stops and train stations, compared to the average consumer.
They are also more likely to use their phone to search for products and services they notice on posters and billboards. Notably, unlike their counterparts in Indonesia, loyalty program enthusiasts in Singapore are more likely to appreciate brands that get involved with social issues.
Consumers in Thailand who are loyalty program enthusiasts are significantly more likely to notice advertisements displayed at train stations and on the sides of taxis, compared to the average consumer.
Similar to their counterparts in Indonesia, email advertisements are significantly more likely to influence the purchase decisions.
Also, similar to their counterparts in Singapore, loyalty program enthusiasts in Thailand are more likely to use their phone to search for products and services they notice on posters and billboards, as well as to appreciate brands that get involved with social issues – compared to the general population.
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Methodology: YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data for Australia is nationally representative of all adults (18 years or older), and weighted by age, gender, and region, and reflect the latest Australian Bureau of Statistics (ABS) population estimates. Profiles data for Hong Kong is representative of the adult online population (18 years or older), weighted by age and gender, and reflect the latest Hong Kong Census and Statistics Department (C&SD) population estimates. Profiles data for Indonesia is representative of the adult online population (18 years or older), weighted by gender, age, socioeconomic class, city tier, and reflect the latest Indonesian Bureau of Statistics (BPS) population estimates. Profiles data for Singapore is nationally representative of all adults (18 years or older), weighted by age, gender, and ethnicity, and reflect the latest Singapore Department of Statistics (DOS) estimates. Profiles data for Thailand is representative of the adult online population (18 years or older), and weighted by gender, age, region and monthly household income, and reflect the latest National Statistical Office of Thailand (NSO) population estimates. Learn more about Profiles.
Photo by Carlina Teteris on Getty Images
