Unlock Growth Potential in China's Loyalty Program Market

China is one of the world’s largest markets, with significant opportunities for growth. It is also a high-tech market, which shows many of the most innovative and advanced practices for businesses today. This is no different for loyalty program businesses.

This is a sector that is expected to see significant growth in the coming years. The loyalty market is expected to grow by 11.4% to reach 18.83 billion USD this year. The compound annual growth rate is expected to stay at 10.1% from 2024 to 2028, to reach 27.67 billion USD by the end of 2028.

Building Strong Relations with Chinese Customers: Successful Examples and Strategies

So how to leverage and build relations with Chinese customers, to expand growth in this sector? It may be helpful to look at existing examples of successful businesses.

NIO, for example, is an app for car owners. This allows them to connect to needed services for their vehicles, but also incorporates a social media aspect, in that car owners can post about their vehicles. This then leads to the unique feature of the app–that NIO app users can create and be part of “clubhouses” to exchange interests. But, importantly, this also creates a sense of exclusivity.

So, too, with the payment system Alipay. Alipay is at the cutting edge when it comes to allowing customers to rack up points through the usage of apps, which can be used for other benefits or services.

Indeed, this points to the explosive growth in ecommerce in China in recent years. Revenue from ecommerce was more than 1.2 trillion USD in 2022, and is expected to be 1.6 trillion USD by 2025, by which time there will also be more than 1.2 billion users. User penetration is expected to be 83.9% by 2025, up from 71.9% in 2022.

Much of the capacity for membership programs to build ties with customers in the Chinese market is because of the ubiquity of the app WeChat. WeChat is used not only as a means of communication, similar to WhatsApp or LINE in other parts of the world, but also as a platform for news, and in which payment systems such as Alipay or other apps are integrated.

It is no exaggeration to say that life is impossible without WeChat in China at this point. This proves similar to the uniqueness of the ride-sharing app Grab in the Southeast Asian market. For membership programs in China, the use of WeChat is a must.

Harnessing Online Survey Platforms for Personalization in China

Still, it bears worth keeping in mind, China is one of the world’s largest countries. To know the distinct tastes of groups such as Millennials, Boomers, or members of Gen Z, it may be necessary to gather data on consumers before plunging into what is one of the world’s most highly competitive markets.

Online survey platforms, then, can be used to gather more information on users. By correctly understanding the needs of consumers, you can use the information to improve and enhance your businesses. Additionally, you can utilize it for personalized marketing, which is becoming increasingly important in today's business landscape.

This is particularly effective when online survey platforms are a core part of membership programs, allowing for rewards in exchange for survey responses. Online survey platforms may offer rewards programs, enabling companies with membership businesses to partner with the platform to reward their members for survey participation. The more surveys completed, the more points members can earn, effectively increasing engagement and retention. The possibilities of this prove as expansive as the Chinese market itself.

To learn more about how you can monetize your loyalty program, get in touch with our consultants today!