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Rewards drive Singapore shoppers

Over two thirds (68 per cent) of Singapore travellers look to the quality of rewards on offer when making travel purchase decisions, according to new research.

However, travel operators are failing to meet reward expectations with over half (56 per cent) of Singapore consumers claiming they are not satisfied with current programs.

The study, from reward and ancillary revenue provider Collinson Latitude, found 76 per cent of travellers’ purchase decisions in Singapore are “sometimes, often or always influenced” by their program.

“This highlights the big impact reward programs now have on revenue generation and customer retention, with around three quarters of travel customers potentially choosing a competitor if reward programs are not up to scratch,” the study concluded.

A Guide to Reward Programs: The Traveller’s Review – which questioned 4000 consumers globally – also showed that despite being the first sector to introduce reward programs in the 1970s, travel is now falling behind the curve. The retail, food & drink and the finance sector all ranked higher than travel in terms of consumer satisfaction and quality of reward programs.

“Combined with the fact that in 52 per cent of cases a rewards program can be the tipping point between a customer choosing one brand over another this suggests travel companies need to re-think their reward program strategy.”

When Singapore members were asked about the areas where travel programs were falling short, three key areas stood out:

  • Ease of use: Six in 10 Singapore consumers said reward programs were overcomplicated.
  • Relevancy & Choice: A quarter said more choice of travel rewards would help improve their experience.
  • Service levels: One in 10 were unhappy with the level of service offered by their program.

“Today’s connected traveller expects benefits from travel brands that are tailored to their individual needs,” said James Berry, eCommerce director at Collinson Latitude.

“If the user journey is poor, the transaction is too complicated or they can’t find the reward they want, members will rightly look to other suppliers – waiting is not an option and a one size fits all approach doesn’t fly anymore.”

Collinson Latitude believes that by taking simple steps to address the issues highlighted, travel companies can improve the value of their reward and redemption programs, having a big impact on customer satisfaction and retention.

“To genuinely improve the way reward members perceive travel programs, it’s important to understand who customers are and what it is that they are likely to find rewarding. Deeper insights into customer behaviours give travel operators a critical competitive edge.”

James Berry announced the preliminary findings of the ‘A Guide to Reward Programs: The Traveller’s Review’ research report during a keynote session at MEGA Event. An overview can be downloaded here, with the full report available in the New Year. To register to receive the full report, email:


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