CHATLABS
CHATLABS
WHY CHATLABSCONTACT USGET A DEMO
chatlabs-webinar-build-customer-loyalty-in-china

Consumer Secrets: How to Build and Maintain Customer Loyalty in China

Webinar: Salesforce x Collinson x ChatLabs

June 14, 2022 | Joyphie Yu

Salesforce:

Loyalty Management: Create Personalised, Connected Experience in the New Era of Loyalty

01

The Relationship between Gen Z Consumers and Loyalty in China

By 2026, Gen Z in China will make up 40% of consumers. They are digital first, tech-savvy, and willing to try new brands. Building a data-driven loyalty program is important in nurturing relationships with the Chinese Gen Z consumers. 40% of the consumers have tried a new brand and 84% have already expressed brand stickiness with the new brands (data source: Salesforce).

02

What Chinese Consumers Expect from Loyalty Programs

In reality, 54% of loyalty program memberships are inactive (data source: Salesforce): 

  1. 56% of consumers are more likely to buy from a brand with a loyalty program

  2. 34% of companies treat customers as individuals, while 66% of the customers expect personalised offers

  3. Gen Zers need more than simply reward points in loyalty programs. They are expecting exclusive offers such as:

  • Early access to new products or services

  • Personalised messages

  • Invitations to exclusive events

  • Community 

  • Connections outside transaction

03

How to Reimagine Loyalty Program for the Customers in China
ChatLabs-Reimagine-Loyalty-Program for-the-Customers-in-China
ChatLabs-Customer-Loyalty-Expectation-in-China

04

How to Build Customer Loyalty in China

  1. Understand customers

  2. Build enterprise-wide strategy 

  3. Execute a unified strategy that unlocks lifetime value (transactional to behaviour program to consistent experience)

ChatLabs-Unlock-Customer-Life-Time-Value

Challenges of Building Loyalty & Solutions:

1.Siloed Strategy: 

Challenge: Loyalty program is led only by the marketing team.

Solution: Loyalty should be a company-wide initiative. It requires buy-in and insights from the data, finance, account, and operation teams to ensure the frontline staff are helping to boost adoption and engagement.


2.Disparate Data: 

Challenge: Without integrations of data sources, the rest of the tech stack inhibits connectivity and personalisation. 

Solution: Loyalty technology needs to leverage multiple data sources in order to provide insights needed for programs that engage customers and provide value for businesses. 


3.Inflexible Tech: 

  • Loyalty drivers have changed, with massive shifts in how consumers interact with organisations in every industry over the last year. 

  • It’s difficult to scale up and run updates with legacy technology. 

  • Point solutions don’t necessarily provide enough flexibility for a properly customised platform.


4.Changing Expectations: 

Organisational and technological barriers make it hard to adapt and anticipate changes in consumer expectations.


5.Disconnected Experiences: 

Challenge: Consumers are left with a disconnected experience across departments and their lifecycles. 

Solution: Brands need to deliver seamless experiences across different channels and platforms.

ChatLabs:

Translating Loyalty to the China Market

ChatLabs-Customer-Journey-West-Versus-China

01

What does a Typical Chinese Consumer Journey Look Like

ChatLabs-Platforms-and-Channels-Used-in-Customer-Journey-in-China

02

Zoom into the ‘Return Funnel’: Purchase - Service - Retention and Referral

Although most of the platforms have turnkey commerce functionality with great acquisition, awareness and conversion rates, the WeChat ecosystem still outcompetes them with the greatest exposure to the largest user base in China within the customer funnel.


Reasons:

  1. Messaging capabilities (Client ambassadors can communicate directly and build 1:1 relationship with clients on WeCom)

  2. Mini Program - E-commerce platform

  3. Using gamification to drive content & engagement

  4. WeChat Moments - Ad space

  5. WeChat Channel - Short video capabilities

ChatLabs-Where-Loyalty-in-China-is-Best-Activated-in-Customer-Journey
ChatLabs-WeChat-End-to-End-Loyalty-Ecosystem

03

2 Tips on Building Loyalty:

1.In China, loyalty starts the moment a consumer discovers your brand, not at signup.

Because your consumer might have a long-standing relationship with your brand at many touch points offline or online before signup.

ChatLabs-Customer-Journey-in-China-Starts-before-Signup
ChatLabs-Getting-to-Know-Your-Customers-at-Each-Step

Tracking the Tencent ecosystem, ByteDance, Alibaba Network, and also offline interactions are crucial. But more importantly, it’s about bringing back the data into your global CRM and Salesforce to build a 360° view of your customers.

ChatLabs-Merge-Profiles-and-Form-a-Single-ID-for-Each-Customer

After tracking, it is imperative that you incentivise 1:1 emotional connections with Chinese consumers. 

You can provide customers with loyalty points throughout the customer journey.

Though they purchase outside of the WeChat ecosystem, brands can still reward them with loyalty points.

ChatLabs-Plan-Loyalty-Around-Each-Interaction

2.In China, consumers want to be treated as friends of your brand.

ChatLabs-WeChat-Places-Your-Brand-in-Consumer's-Friends-and-Family-Feed
ChatLabs-Plan-Communication-Based-on-the-Customer-Lifecycle

Content Personalisation

For example different customers may see different menu bars.

ChatLabs-Automation-Framework-in-2022

Data Integration

Systems and communication channels aren’t in silo.

ChatLabs-Automation-Capabilities-in-SFMC

ChatLabs integration with Salesforce Marketing Cloud Journey Builder:

ChatLabs-Real-Time-and-Educated-Marketing-Automation

China Brand Loyalty Best Examples:

How brands build brand engagement and leverage loyalty programs to incentivise user-generated content.

ChatLabs-Best-in-Class-Examples-Swarovski-Dyson

Collinson:

China Loyalty: The World’s Crystal Ball

Loyalty elements that will drive the greatest return in the future:

  1. Creating a seamless customer experience across all customer touch points

  2. Embedding loyalty as a core business function, versus a siloed program

ChatLabs-Loyalty-Innovations-for-Smaller-and-Bigger-Loyalty-Budgets
ChatLabs-Loyalty-4.0-Must-Haves-in-China
ChatLabs-Loyalty-Program-Example-Mandarin-Oriental

Conclusion:

Tapping into the highest potential of the loyalty program for your brand in China is a process of understanding your customers through a 360° view while incentivising emotional connections. Find out how ChatLabs has worked with Collinson and Salesforce to help clients unify their China data to create automated customer-centric experiences all on one compliant platform for the China Market!


Send an email to contact@chatlabs.com if you’d like to learn how you can start offering a loyalty program for your Chinese customers today!

Salesforce x Collinson x ChatLabs:

Consumer Secrets: How to Build and Maintain Customer Loyalty in China

Webinar Replay

More Events

Subscribe for updates

Be the first to get updates on breaking news, valuable insights, industry reports, and case studies.