Singapore loyalty programs attract 69 per cent of shoppers

Two in three locals belong to at least one Singapore loyalty program – and the same percentage believe they entice them to shop there more often.

A global study of 30,000 consumers online conducted by Nielsen and covering 63 countries included 353 respondents from Singapore. Nielsen undertook the survey to learn what drives consumers to participate in retail loyalty programs, examining participation rates, rewards or benefits consumers value the most and features most appealing in the loyalty programs of the future.

“Loyalty programs are designed essentially to drive traffic, increase a retailer’s share of the consumer’s wallet and prompt additional purchases,” said Joan Koh, MD Nielsen Singapore and Malaysia. “For a loyalty program to be successful, it must be carefully tailored to deliver flexibility, greater value and connect to the needs of the customers.”

The survey concluded that in a saturated retail landscape, loyalty programs can help retailers to drive more frequent visits and heavier purchasing.

Two-thirds of Singapore consumers said that with all other factors equal, they would buy from a retailer with a loyalty program ahead of one without.

Seven in 10 Singaporeans also strongly or somewhat agreed that they would shop more at online retailers if the sellers provided benefits similar to those of traditional in-store retailers.

Flexibility was important to the Singaporean consumer. More than eight in 10 Singaporean loyalty program participants (83 per cent) said that it was very or somewhat appealing to be able to earn rewards regardless of whether a purchase was made in store, on a website or on a mobile device. Eighty per cent cited the ability to choose among several types of rewards. Respondents also rated two other benefits highly: personalised discounts or promotional offerings based on past purchasing (74 per cent) and the opportunity to earn bonuses by doing some specified activity (71 per cent).

Monetary incentives – rebates or cashbacks – proved the most valued loyalty program benefits, cited by 67 per cent of Singapore respondents.

Sixty-two per cent said product discounts were the most desired.

Just three in 10 said free products was the most valued benefit and 26 per cent nominated free shipping as their most-preferred benefit.

“A robust loyalty program acts as a unique differentiator to help retailers enhance their competitive advantage by reducing the customer’s likelihood to switch stores,” said Raymond Cheung, head of retailer vertical with Nielsen Singapore.

“Also, an omnichannel experience is the new reality for consumers. Retailers have to implement a well-designed loyalty program holistically across online and offline channels to effectively drive customer engagement and increase revenue opportunities.”

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