May 22, 2024

Leveraging Gamification and Partnerships in Thailand's Loyalty Programs

 

Loyalty Program in Thailand

 

 

When it comes to new and exciting markets, Southeast Asia is the place to go. In particular, Southeast Asia is primed for online loyalty programs, with more than 75% of the population under the age of 45.

In past years, around the time of the COVID-19 pandemic and after, online shopping and the use of apps are on the rise. Online shopping has seen spectacular growth, with an expected more than 380 million users by 2026. This is exponential growth, especially in light of how a few years ago, there was less than 300 million users. Likewise, one has seen more rapid expansion in fintech and the use of cryptocurrency and digital currencies in Southeast Asia as compared to other markets.

 

 

Thailand's Booming Loyalty Program Market

Thailand proves especially noteworthy. Thailand is expected to see rapid growth in the loyalty programs market, from 1.39 billion USD in 2023 which is expected to skyrocket to 2.23 billion USD by 2028. Indeed, in 2021, Thailand was 29% of worldwide growth in e-commerce, as the 22nd largest e-commerce market worldwide. And this has translated to rapid growth in loyalty programs, with a 1.42 billion USD market for loyalty programs in 2022 expected to surge to 2.27 billion USD by 2026. 44% of Thai shoppers purchase from businesses with reward programs, showing the importance of loyalty programs.

A major factor in Thailand’s spectacular growth is the significant use of smartphones, with almost all Internet users using smartphones. Mobile shopping is expected to go from a 15.8 billion USD market in 2020 to 25 billion USD by 2023.

As such, loyalty programs in Thailand have especially been driven by the use of online shopping websites and apps. Such websites include Shopee, Amazon, and JD. On the other hand, apps such as Grab are ubiquitous and indispensable for everyday life. But Thai businesses have been savvy in distinguishing both offline and online marketing and reward strategies, even as such apps allow for much data to be gathered on users.

 

 

3 Factors That Propel the Growth of Loyalty Programs

What has allowed for this spectacular growth in loyalty programs?:

    1. Gamification
      Gamification is one key factor. We live in the age of the app, in which everything from buying products to online dating has become an app-based game. This makes racking up rewards and building stronger ties with businesses into something fun. To this extent, personalization makes customers feel as though they are more than just a number or a stat in the vast expanse of the Internet–rather this makes them feel that they have a personal connection to a business.

    2. Partnership
      Not all businesses will be able to have the vast reach of, say, Grab, which is ubiquitously used for everything from food orders and deliveries to e-payments. Few platforms will be able to attain such penetration of multiple markets across nations, to the extent that it has become indispensable for the livelihood of many individuals. Nevertheless, partnering up with other businesses allows one to expand reach to new markets, as well as offer more rewards. Many of the most successful loyalty platforms are built on this sort of collaboration, then.

      Successful examples include, unsurprisingly, Grab, but also The1, whose loyalty program includes more than 1,000 partners and 20,000 service points, as well as SPOT. SPOT currently has 7.2 million members, integrating two different cards into one, and drawing in members with an affordable and attractive welcome package.

    3. Utilize Online Survey Platform
      It can prove worth your time to work together with online survey platforms as well. Online survey platforms allow you to get to know more about your customers and can in themselves assist with rewards, particularly since such platforms may have their own networks that you can tap into. A cleverly-designed online survey can help with gamification and the point of such surveys is to further the personalization of your product.

 

 

Thailand is a new and exciting market, but one which also offers lessons about other contexts. But the way of increasing customer engagement and monetization are within your grasp! There are many successful examples and widening your scope through well-thought-out partnerships is the way to go!

 

 

 

 

 

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

 

 

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