Loyal customers are the key to online growth

Pawoot Pongvitayapanu, Founder and Managing Director at Rakuten TARAD.com discusses the importance of garnering loyalty online As Thailand benefits from the wider introduction of 3G services in the country, e-commerce and mobile applications are set to prosper. According to a recent MasterCard Worldwide survey, 93 per cent of Thais questioned said they planned to make a purchase online during the first quarter of 2013. Taking advantage of new technologies delivered using the latest smartphones and tablets, consumers can buy literally anything online, from groceries to holidays, gadgets to clothing, and even cars. This is an exciting, innovative and profitable area of retail to be in, and the possibilities for where the e-commerce space may go over the next 12 months are almost endless. However, one of the cornerstones of commerce, whether online or in traditional bricks-and-mortar stores, has always been turning one-time shoppers into regular, loyal customers. The good news is brand and website loyalty is increasing online. When it comes to building repeat custom online, independent research commissioned by Rakuten in the UK revealed that 39 per cent of shoppers surveyed see loyalty programmes as the biggest incentive to make a second purchase online. Retailers and marketers should look to put loyalty schemes in place to garner repeat custom, encouraging yours becomes the ‘go to’ brand. The modern loyalty scheme Loyalty programmes are nothing new. From coffee shops and supermarkets to airlines and hotels, Thai consumers have been receiving incentives and rewards in return for devoting their loyalty to the brand for many years. Over the course of time, this type of programme is becoming more complex and demanding as retailers are now realising that a rewards and loyalty programme does not just mean money off. Partnerships with complimentary brands, such as spas, salons and restaurants are becoming increasingly popular. Consumers are open to receiving incentives and rewards based on their interests and shopping behaviours, whether this is early access to sales or new lines, being able to buy treats such as tickets to the cinema or theatre with their loyalty points. In September 2010 RakutenTARAD.com introduced TARAD Super Points, a loyalty program that rewards members by giving back 1 baht for every 100 baht spent at any Premium Mall shop. To date, over 5 million Points have been distributed to members allowing them to enjoy further discounts. We also encourage repeat visits to RakutenTARAD.com website by holding regular special promotions, and give consumers a finite time to use their accumulated points to give them a good reason to return. As a result, an average of 60% of monthly sales are generated from repeat customers. Personalising your rewards In the e-commerce space, online loyalty schemes are now highly sophisticated. Cookies, other tracking technologies, and services such as affiliate networks mean that retailers, brands and marketers have a vast wealth of data on when, where, how and why their customers shop online. They also have data on what they have bought, how much they spend, and what sort of other things they’re interested in based on their purchase history and web-browsing behaviour. This allows brands to offer incentives targeted at an individual customer. This is great news for brands trying to reach the younger generation; Rakuten’s research recently found that younger online shoppers prefer the personal touch, with 24 per cent stating that personalised offers were most likely to encourage another sale. It is also worth taking into account that consumers don’t differentiate between channels. Deloitte explains in ‘The Changing Face of Retail’ that shoppers expect to be able to log on in mobile, go into a store or shop online and have access to their account. This includes having access to and being able to accrue and spend their loyalty points and other rewards. A modern, digital loyalty scheme can either be specific to one retailer or, even better, encompass multiple brands and retailers. Ideally, online shoppers should be able to shop, earn, save, and spend with every purchase made, whether they shop online or in-store with the participating brands. This drives customer loyalty and return rates to multiple brands, rather than restricting customers to one loyalty system per retailer. Treats for everyone Loyalty schemes present benefits both for retailers and for consumers. The data a retailer gathers on each consumer who opts into a loyalty programme is invaluable, allowing them to better target offers and products to a consumer based on their previous purchasing history. This personalised targeting continues the virtuous circle of buying, rewards and therefore more buying. So ensure you offer your customers something to encourage them to pick your brand over another brand, whether it’s points, discounts or other treats. Media please contact: Archiraya Wangkiat (Icing) Spark Communications Tel: 0-2653-2717-9 Fax: 0-2653-2720 E-mail: [email protected] -NT-

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