The other day, I had lunch with one of our clients.
While we were chatting, I shared how Loyalty Management can actually be used to drive sales.
After I finished explaining, the client said,
“I never thought about it from that angle—even though I’ve been working on loyalty programs for years.”
Then added,
“You should really share this with others—I think many people doing Loyalty Management may never have looked at it this way. It could be really helpful.”
So let’s start with the short-term tactics..
1. Basket Maximization
Try to encourage customers to spend more in a single bill. For example, spend at least 3,000 THB in this transaction and get 2x points, or spend 5,000 THB and receive a discount coupon for next time.
2. Trial Activation
This is about creating incentives for trying something new. For instance, to celebrate the launch of a new SKU, offer 2x points during the launch period. Or during the grand opening of a new store, offer 3x points—only for these 3 days.
3. Time-sensitive Reward
Think of it like a flash deal. For example, buy a drink with a snack and get 2x points for this week only. Or attach this to other purposes such as purging near-expiry stock or soon-to-be-discontinued items. Sometimes, these point campaigns can have shorter expiration dates than regular ones.
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Key Features: Use “Spending Rules” with flexible min/max spend, so the budget doesn’t explode. The Point System should support campaign-specific expiry dates. |
Now moving into mid-term strategies…
1. Engagement Quest หรือ Mission
Set a medium-term goal for customers (1–3 months). The goal is to help shape new behaviors. For example, spend 30,000 THB in 3 months to receive special points or coupons. Or like what Roots does: visit and buy from all 6 branches and get 6 drinks back in return.
2. Milestone-based Incentive
Similar to missions, but more like layered or progressive missions. Once one is completed, it unlocks the next, more challenging one. This is full-on gamification.
3. Top Spender
Let customers compete for top spending to win big prizes. This model is getting more popular, especially when a brand collaborates with influencers and wants to track sales generated specifically by that influencer.
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Key Features:Use Mission Campaigns and Event Tracking — not everything is about sales volume. |
Finally, let’s talk about long-term loyalty strategy…
1. Tiered membership
A classic concept that’s still evolving. For example, Marriott Bonvoy gives tier status based on the number of nights stayed at any of its hotels, regardless of room price. A night is a night. Price differences are reflected through points in a different currency.
2. Exclusive Privilege
This is about offering benefits without requiring point redemption. For instance, Platinum members might be invited to a fashion show during Bangkok Fashion Week—an opportunity to create memorable experiences for select members.
3. Commitment-based Loyalty
This involves customers paying in advance at a special rate. This often comes in the form of prepaid vouchers or credits. A common example is in F&B where you buy a full set of vouchers upfront, or beauty clinics that offer 150,000 THB worth of treatment for 150,000 THB prepaid.
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Key Features:
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| Not sure how many of you made it this far, but I’d love to hear your thoughts. Let’s exchange ideas. Honestly, mid-term and long-term tactics often overlap, depending on how you look at it, but I’ve laid them out this way for easier understanding. If you find this helpful, please feel free to share I don’t usually write posts like this… but maybe it’s time I try to be a little more useful. |