In the dynamic landscape of global commerce, brands are constantly seeking ways to foster loyalty among their customers – especially in Asia, a region characterized by its rich tapestry of cultures, consumer behaviors, and technological advancements. To navigate this complex environment, brands must embrace flexibility, creativity, and cutting-edge technology.

At Global Flight’s 2024 Loyalty & Awards, Damien Pfirsch, Head of Rocket Travel by Agoda, explored how global brands can build loyalty in Asia, and the steps to do it.

Asia is not a monolith; it is a mosaic of unique markets, each with its own consumer preferences and expectations. Take Japan, for example, where points-based loyalty programs have become a cultural staple. Platforms like Rakuten have seen a dramatic increase in user engagement, with points earned tripling over the past decade. This trend underscores the Japanese consumer's affinity for earning and redeeming points across a wide array of products, including travel.

In India, the story is different. Here, the key to consumer loyalty lies in accommodating local payment methods such as PayTM and PhonePE. Meanwhile, in South Korea, digital platforms like Naver and Kakao dominate, reflecting the country's high adoption of digital solutions.

To succeed in Asia, brands must invest in deep local merchandising. This means offering products and services that resonate with local consumers, providing experiences that feel as familiar and trustworthy as those from local brands. For instance, in Japan, integrating payment options like PayPay, which boasts 63 million registered users, can significantly enhance user experience and trust.

Moreover, brands should tailor their offerings to meet local demands, such as unique supply types and payment terms. Effective communication that respects cultural norms and expectations is also crucial. 

For instance, one of our partners has enhanced its offerings by increasing the number of hotel properties and property types available, along with localized terms and conditions. They offer customized pricing options, such as earning 1 mile for every 100 yen spent, which is more attractive compared to other online travel agencies. This strategy has led to a threefold increase in hotel bookings, demonstrating the power of aligning loyalty programs with local consumer expectations.

Similarly, another partner has leveraged deep local merchandising by creating a map-based search feature that allows users to explore travel options by prefecture. This feature caters to the Japanese consumer's preference for detailed and localized travel planning. Additionally, they implemented PayPay as a payment option, tapping into Japan's leading cashless payment system with a 66% market share. This integration not only enhances user convenience but also builds trust by aligning with local payment habits.

A hotel partner has also seen significant growth by using promotions to test and refine what value resonates with members. By offering localized promotions to customers traveling to destinations like Chiang Mai, Maldives, and Danang, the business has achieved a 60% growth during promotional periods. These targeted offers help the brand curate and adapt its loyalty strategies to meet the specific needs of different markets.

By understanding and adapting to these local nuances, brands can build stronger connections with their audience, ultimately driving loyalty and engagement in the diverse Asian market.

In the quest to deliver personalized experiences, technology serves as a crucial enabler for brands aiming to optimize their loyalty programs in Asia. By leveraging flexible technology, brands can craft tailored offerings that resonate with diverse customer segments.

One of the key advantages of flexible technology is the ability to calculate rewards based on multiple variables rather than relying on a single economic factor. This approach allows brands to offer a variety of value propositions, including points, discounts, and cashback, tailored to different customer preferences and behaviors.

Brands can differentiate their loyalty programs by creating specific value propositions for various loyalty tiers, cardmember statuses, products, and other customer attributes such as origins and destinations. This level of customization ensures that each customer segment receives a unique and relevant experience, enhancing their engagement and satisfaction.

Machine learning also plays a pivotal role in driving personalization, enabling brands to analyze customer data and deliver highly targeted offers. By embracing generative AI (GenAI), brands can further enhance personalization and efficiency across various touchpoints, including front-end optimization, customer service, reviews, and security.

This technological flexibility empowers brands to adapt quickly to changing market dynamics and consumer expectations, ensuring that their loyalty programs remain dynamic and relevant.

Savvy brands recognize that a one-size-fits-all approach does not work in Asia. Instead, they focus on developing innovative go-to-market strategies that support a dynamic loyalty program. This includes leveraging local payment options to enhance value propositions and using targeted promotions to test and refine what resonates with different markets.

Global brands looking to optimize their loyalty programs in Asia must prioritize flexibility, deep local understanding, and technological innovation. By doing so, they can create meaningful connections with consumers and drive long-term loyalty in this diverse and vibrant region.