Loyalty Management: Create Personalised, Connected Experience in the New Era of Loyalty
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).
What Chinese Consumers Expect from Loyalty Programs
In reality, 54% of loyalty program memberships are inactive (data source: Salesforce):
56% of consumers are more likely to buy from a brand with a loyalty program
34% of companies treat customers as individuals, while 66% of the customers expect personalised offers
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
Invitations to exclusive events
Connections outside transaction
How to Reimagine Loyalty Program for the Customers in China
How to Build Customer Loyalty in China
Build enterprise-wide strategy
Execute a unified strategy that unlocks lifetime value (transactional to behaviour program to consistent experience)
Challenges of Building Loyalty & Solutions:
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.
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.
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.
Organisational and technological barriers make it hard to adapt and anticipate changes in consumer expectations.
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.
Translating Loyalty to the China Market
What does a Typical Chinese Consumer Journey Look Like
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.
Messaging capabilities (Client ambassadors can communicate directly and build 1:1 relationship with clients on WeCom)
Mini Program - E-commerce platform
Using gamification to drive content & engagement
WeChat Moments - Ad space
WeChat Channel - Short video capabilities
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.
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.
After tracking, it is imperative that you incentivise 1:1 emotional connections with Chinese consumers.
Systems and communication channels aren’t in silo.
ChatLabs integration with Salesforce Marketing Cloud Journey Builder:
China Brand Loyalty Best Examples:
How brands build brand engagement and leverage loyalty programs to incentivise user-generated content.
China Loyalty: The World’s Crystal Ball
Loyalty elements that will drive the greatest return in the future:
Creating a seamless customer experience across all customer touch points
Embedding loyalty as a core business function, versus a siloed program
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 email@example.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