DUBLIN–(BUSINESS WIRE)–The “Indonesia Loyalty Programs Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
According to the Q1 2022 Global Loyalty Programs Survey, Loyalty Programs Market in Indonesia is expected to grow by 13.9% on annual basis to reach US$883.7 million in 2022.
In value terms, the Loyalty Programs Market in Indonesia has recorded a CAGR of 14.3% during 2017-2021. The Loyalty Programs Market in Indonesia will continue to grow over the forecast period and is expected to record a CAGR of 13.6% during 2022-2026. Loyalty Programs Market in the country will increase from US$775.5 million in 2021 to reach US$1470.9 million by 2026.
With the global shakeups due to Covid-19, many businesses had to embrace different strategies to retain their customers and expand their market share in Indonesia. Moreover, According to the Q1 2022 Global Loyalty and Rewards Market Survey, around 60% of these businesses invested substantially in their digital transformation and customer retention strategies in Indonesia. Consequently, loyalty and programs became one of the most used techniques during this period. Additionally, loyalty programs also went through a digital transformation over the last two years, just like the businesses.
In order to be competitive, companies are building relevant and successful loyalty programs identifying the important trends in the Indonesian market, thereby increasing customer engagement. Additionally, these loyalty programs are also employed to work as an incentive to generate more sales and also to actively seek ways to have more touchpoints with the customers.
The publisher expects the marketers in Indonesia to navigate through the populous region and design strategies to ensure that, their marketing strategies led to an increase in overall brand revenue. In particular, businesses and brands entering this region need to prioritize instant gratification since the trend is now on the rise. Therefore, Indonesian brands are developing loyalty programs to catch up with this fast-paced trend and meet customer expectations.
Super apps are partnering up with QSRs to integrate loyalty programs in their platforms in Indonesia
In Indonesia, quick service restaurants (QSRs) are expanding their services to provide consumers with the convenience of food delivery together in-store dining experience. Therefore, QSRs are partnering up with super apps to elevate the customer experience through their reward programs.
- In March 2022, Starbucks announced to partner with superapp Grab across six countries in Southeast Asia, including Indonesia, the Philippines, Thailand, Singapore, Malaysia, and Vietnam.- Through this partnership, customers can enjoy Starbucks Rewards benefits on purchases through Grab. Also, customers will be able to order and pay in stores via GrabPay e-wallets for both in-store and in-app, allowing them to earn GrabRewards as well as Starbucks Rewards Stars and also order Starbucks products with last-mile delivery fulfillment through Grab.- Notably, the QSR is planning to merge Starbucks Rewards with the Grab app to enable the customers to enjoy more ways to earn rewards on their Starbucks orders in Southeast Asia. Specifically, the Starbucks Rewards members will be able to link their accounts with GrabRewards and will be able to earn both Stars and GrabRewards points for orders through GrabFood.- Additionally, the customers will be able to get the benefits of personalized and convenient experiences that will strengthen the customer relationship with Starbucks through GrabPay, GrabRewards, GrabFood, GrabExpress, and GrabGifts.
Starbucks, which has 1,882 stores across the Southeast Asia region, the partnership is expected to attract a significant customer base. Furthermore, customers will also have the option to sign up for a Starbucks Rewards membership through the Grab app and redeem free beverages and birthday treats.
Indonesian B2B rewards and loyalty providers are attracting investments
With the businesses seeing all-time lows, companies are hyper-focused on loyalty programs to capture new customers and retain the existing customers. Therefore, loyalty and CRM management companies are attracting funds in the country. For instance,- In March 2022, Aldmic Technology, an Indonesia-based digital voucher startup, raised Series A funding from South Korea-based Coop Marketing, the company behind Kakao Gift.- Notably, the company provides gifts vouchers that can be purchased by companies and distributed to their employees as part of a loyalty program. Specifically, this company, through its expertise, helped develop Samsung Gifts Indonesia, the rewards program of the company.
With the loyalty programs helping keep customers engaged and turning positive ROI for companies, the publisher expects these B2B loyalty companies to attract more investments over the next four to eight quarters in the country.
E-commerce companies are launching innovative tools to streamline customer management and retention
With the booming e-commerce industry, merchants are increasingly facing intense competition to hold on to their customers. Therefore, e-commerce platforms are launching innovative tools for the brands to build deeper connections with potential and existing customers.
- In July 2021, Shopee launched the Shopee Mall Brand Memberships, a tool that will help brands on Shopee Mall retain their existing customers. This tool had been rolled out in Indonesia and six other markets, such as Singapore, Malaysia, Thailand, Taiwan, Vietnam, and the Philippines.- Through this tool, brands will be able to customize their own membership program, such as introducing a welcome gift, deciding on the number of membership tiers, and also brand loyalty points rewarded against every purchase of the shoppers.- Furthermore, the customers will be able to collect and use these points for redeeming benefits such as getting vouchers and gifts with purchases. Additionally, these Shopee Mall Brand Memberships vouchers can also be accumulated with other Shopee vouchers.- Notably, the brands will be able to identify and manage various customer segments through data analysis of customers’ profiles, spending habits, and preferences through this tool.- Moreover, the company plan to add new features to this tool to enable brands can merge their offline and online CRM systems and loyalty programs with this loyalty program.
Since most of the customers are spending a huge part of their income on online shopping, this unique product of the company is likely to see growth with brand partners achieving more sustainable growth by driving conversion and higher spending in the meantime delivering greater value to shoppers.
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026
- Loyalty Schemes
- Loyalty Platforms
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026
- Point-based Loyalty Program
- Tiered Loyalty Program
- Subscription Loyalty Program
- Perks Loyalty Program
- Coalition Loyalty Program
- Hybrid Loyalty Program
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Media & Entertainment
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026
- Diversified Retailers
- Department Stores
- Specialty Stores
- Clothing, Footwear & Accessories
- Toy & Hobby Shops
- Supermarket and Convenience Store
- Home Merchandise
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
- Card Based Access
- Digital Access
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
- B2C Consumers
- B2B Consumers
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
Indonesia Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
- Custom Built Platform
- Off the Shelf Platform
Indonesia Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior, 2021
- By Age Group
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/wznhfi
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