How Grocery Brands in APAC & MEA Are Winning with Loyalty Programs

Posted on December 5, 2024 by Anjali Pillai

With grocery sales projected to increase by 24.01% from 2023 to 2029, reaching nearly USD 629.76 billion, several major grocery brands in APAC and MEA face the challenge of standing out in a crowded market. A grocery shopping rewards program has become a powerful differentiator, helping supermarkets retain customers while enhancing their shopping experience.

What is a Grocery Store Loyalty Program?

A grocery loyalty program is a strategic initiative that rewards customers for repeat purchases, whether in-store or online, through incentives like discounts, cashback, or exclusive deals. These programs not only enhance customer retention but also drive engagement through grocery app rewards and digital experiences. Explore how Capillary’s Engage+ can up your customer engagement game.

In this article, we’ll explore the best grocery loyalty programs in APAC and MEA that are setting the benchmark for customer loyalty and personalized shopping.

The Best Grocery Loyalty Programs in APAC and MEA

1. Lulu Happiness Program – UAE

With over 500 branches across the UAE, Lulu Hypermarket has built one of the most popular retail loyalty programs in the Middle East. The Lulu Happiness Program offers shoppers instant discounts and promotional deals while rewarding them for every dirham spent.

Customers can join the program online via WhatsApp or the website, making it incredibly accessible. The program follows a tier-based system, offering birthday rewards and exclusive privileges to loyal members.

To enhance customer experience, Lulu has also integrated a mobile app, enabling users to track transactions and rewards in real time. A well-structured loyalty program software allows Lulu to explore advanced features such as gamification and hyper-personalization, ensuring long-term engagement. Check out Capillary’s robust loyalty software – Loyalty+.

2. New World Club Card – New Zealand

New World Club Card in New Zealand offers special discounts exclusively to its members. What sets this program apart is its gamification aspect, where customers can participate in exclusive competitions, adding an element of excitement to their shopping experience.

According to a recent study, 60% of the customers who interact with gamified elements typically make a purchase. These statistics work in favor of New World Club Card who use gamification to drive their business and also engage their customers.

New World Club Card also leverages coalition loyalty features and allows its members to enjoy unique discounts through Club Deals and have the choice to earn Flybuys or Airpoints Dollars™. This program effectively combines savings and entertainment, making it a hit among New Zealanders.

Here’s how you can use coalition loyalty for your business

3. Amazon Fresh – India

Amazon’s Prime subscription is globally recognized, and Amazon Fresh, its online grocery store, extends Prime benefits to budget-conscious Indian shoppers.

Given that 50% of Indian consumers pre-plan their grocery purchases, Amazon Fresh leverages this behavior by offering discounts and free delivery to Prime members. With availability in over 50+ Indian cities, including Tier 1 and Tier 2 markets, the program is redefining convenience in grocery shopping.

By understanding customer behavior and making it a significant part of its strategy, Amazon Fresh was able to become a reliable and successful grocery loyalty program across the country.

4. Cold Storage’s Yuu Rewards Club – Singapore

Cold Storage, a well-established supermarket chain in Singapore, had recently shifted from its previous loyalty program Cold Storage VIP to a newer version by coming under Yuu Rewards Club. This strategic move by Cold Storage has significantly expanded the horizons of their loyalty program, bringing a new level of experience and value to their customers. Cold Storage uses important regional festivals like Chinese New Year to give more offers to its customers. One such offer is free goodies from Cold Storage for a minimum spent of $50 if the customer connects their credit cards with their Yuu Rewards account. Another option is for customers to be able to earn more points during the festival time, encouraging them to make more purchases from Cold Storage.

Since Yuu Rewards Club has close to 1000 popular brands under its umbrella, it offers a robust coalition loyalty program. This coalition approach offers consumers of Cold Storage greater convenience and flexibility as they can now redeem their points across an array of Yuu partner brands.

The co-branded credit card issued in partnership with DBS banks makes it easier for members to collect points faster.

5. Everyday Rewards (previously Woolworths Rewards) – Australia

With a staggering 14 million members across Australia, Everyday Rewards has captured the loyalty of the whole nation. The program’s simplicity and transparency are its strengths. Members earn a minimum of 1 point for every dollar spent, and they can easily boost their points through the Points Booster feature.

The program allows flexible redemption options, including discounts on future shopping, options for Christmas savings, and even Qantas frequent flyer program points. The program also allows reward redemption at multiple touchpoints, including both offline and online store checkouts.

Everyday’s mobile app makes it more convenient for users to earn and redeem rewards and even track their point balances. The digital wallet in the app feature makes transactions easier than ever for their loyal members.

Everyday Rewards has set the gold standard for loyalty programs in Australia.

The Growing Impact of Grocery Loyalty Programs in APAC and MEA

As the grocery industry in Asia-Pacific and the Middle East continues to expand, retail loyalty programs have become essential for brands aiming to retain customers and foster long-term relationships. The programs we explored demonstrate how leading supermarkets are integrating loyalty program software, personalized rewards, and digital innovations to keep shoppers engaged.

From gamified experiences and mobile-first strategies to coalition partnerships and AI-driven personalization, these grocery shopping rewards programs are setting new benchmarks for customer retention.

To stay ahead in this dynamic landscape, grocery brands must go beyond traditional discount-based models and embrace data-driven, omnichannel loyalty strategies. At Capillary, we provide cutting-edge loyalty software that helps supermarkets and grocery brands create high-impact, customer-centric programs that drive real business results.

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FAQs

1. What makes a grocery loyalty program successful in APAC?

A successful grocery loyalty program in APAC offers personalized discounts, seamless mobile app integration, and strategic payment partnerships to create a rewarding shopping experience.

2. How can grocery stores in the Middle East enhance customer loyalty?

By offering exclusive member discounts, localized promotions, and engaging digital experiences, grocery stores can boost customer loyalty in the Middle East.

3. Which grocery loyalty programs lead in customer engagement in the UAE?

Carrefour MyClub and Lulu Hypermarket’s Lulu Points offer tailored promotions, cashback options, and tiered rewards to enhance customer retention.

4. What are the key elements of a strong loyalty program for grocery retailers in India?

A robust grocery loyalty program in India must include AI-driven personalization, digital wallet integration, gamification, and festive discounts to keep customers engaged.

5. How do loyalty programs benefit grocery retailers in Singapore?

Loyalty programs help grocery retailers in Singapore by increasing customer retention, providing valuable shopper data, and enhancing shopping experiences with exclusive rewards and discounts.

Generative Loyalty: Transforming Loyalty Programs with aiRA

Posted on December 5, 2024 by Bharat Menon

In an era where customer expectations are higher than ever, loyalty programs must go beyond traditional methods to truly resonate with their audience. This brings us to Generative Loyalty, the next frontier in customer engagement and retention, powered by artificial intelligence (AI) and large language models (LLMs).

From crafting unique offers to creating dynamic rewards and personalized engagement strategies, this approach empowers brands to deepen connections, boost satisfaction, and drive long-term loyalty.

Whether you’re looking to elevate customer experiences or maximize the ROI of your loyalty program, Generative Loyalty offers a state-of-the-art solution that combines innovation, efficiency, and results.

So without wasting time, let’s get to it!

Generative Loyalty: New AI-Driven Loyalty Paradigm

Generative Loyalty is a groundbreaking approach to customer loyalty, developed by Capillary Technologies in collaboration with Brierley. It leverages artificial intelligence (AI) and large language models (LLMs) to create hyper-personalized, dynamic, and engaging loyalty programs. By analyzing customer behavior and preferences in real-time, Generative Loyalty continuously adapts campaigns, incentives, and experiences, ensuring that loyalty programs remain relevant, context-driven, and effective in fostering long-term customer relationships.

Imagine a world where AI powers your loyalty management!

Why is Generative Loyalty a Game-Changer?

Generative Loyalty transforms traditional loyalty programs into dynamic ecosystems that prioritize real-time insights, personalization, and adaptability. Here’s why it stands out:

Hyper-Personalization: It tailors offers, content, and experiences based on individual customer behaviors and preferences, creating unique engagement moments.
Real-Time Evolution: Campaigns and rewards are continually optimized using real-time data, ensuring programs stay relevant and impactful.
Predictive Insights: Leveraging AI, it anticipates customer needs and preferences, enabling proactive engagement strategies.
Multi-Channel Integration: Generative Loyalty operates seamlessly across touchpoints like apps, websites, and in-store, ensuring consistent customer experiences.
Scalability and Efficiency: It automates processes, reduces manual effort, and maximizes ROI by delivering precise, data-driven engagement strategies.

By combining these elements, Generative Loyalty not only enhances customer satisfaction but also deepens emotional connections with brands, making it a pivotal tool for driving customer engagement and retention in an increasingly competitive market.

Generative Loyalty Ecosystems

Generative Loyalty consists of dynamic, evolving ecosystems with seamlessly integrated tools, LLMs, etc., and massive memory that grows with each customer interaction. Brands can use this framework — with the help of aiRA, of course — to create dynamic, predictive, and adaptable loyalty solutions.

Generative Loyalty allows brands to create ‘smart’ loyalty programs that create hyper-personalized customer experiences (CXs). As the most cutting-edge loyalty solution, Generative Loyalty maximizes customer engagement and optimizes return on investment (ROI).

How AI & Generative Loyalty Impact the Industry

Generative Loyalty is changing how businesses interact with customers. Brands are leaving traditional, task-driven loyalty strategies for the current focus on more interactive and engaging approaches to customer loyalty.

Marketers can use AI-powered tools to create loyalty programs that analyze customer interactions and gather insights to create dynamic, hyper-personalized user experiences (UXs). They can also use these insights to personally provide users with the most engaging and relevant content, which can build long-term emotional loyalty.

Generative Loyalty’s powerful predictive forecasting capabilities are a game-changing moment for customer loyalty. Using artificial intelligence (AI) and large language models (LLMs), programs can create dynamic, personalized customer experiences (CXs) by analyzing customer data to understand customer behavior, preferences, and interactions and acting on real-time insights from this data.

Holistic AI-Powered Loyalty Solution

Generative Loyalty brings a holistic customer loyalty approach to creating hyper-personalized customer experiences. Research shows personalization is crucial to a positive customer experience (CX). About 84 percent of customers appreciate being treated as individuals. A marketing strategy that approaches loyalty and reevaluates loyalty programs with this in mind is guaranteed to be more successful.

Approximately 70 percent of consumers appreciate connected processes for contextualized engagement, so efficient customer loyalty ecosystems must be multi-faceted. This emphasizes the value of a loyalty program’s ability to create dynamic, immersive loyalty experiences.

Powerful Features of Generative Loyalty

The following are a few of Generative Loyalty’s most powerful features:

Predictive Personalization: AI analyzes customer data to personalize experiences, making loyalty programs more effective.

Segmentation and Insights: The platform’s AI analyzes customer data and leverages insights to segment customers.

Enhanced Customer Engagement: AI-driven strategies result in higher customer engagement and loyalty.

Capillary’s innovative AI loyalty solutions integrate personalization, segmentation, and predictive analytics into one loyalty framework as an innovative, customer-centric solution. Loyalty programs built using Generative Loyalty guarantees enhanced results over traditional loyalty marketing.

Loyalty programs built with AI and the Nudge framework could gather insights into customer behavior and use them to create a more dynamic customer experience (CX) or for more targeted marketing communications. This level of personalization — or hyper-personalization — will give brands an edge over competitors since it not only meets but exceeds the expectations set by traditional methods.

aiRA Chatbot & Nudge Framework

Generative Loyalty is a paradigm shift in the user experience (UX), making loyalty management as easy as talking to Capillary’s trusted loyalty chatbot AI: aiRA.

Loyalty management can be overwhelming for marketing teams, but that’s where Generative Loyalty’s Nudge Framework can help! Nudge is an advanced framework that helps manage loyalty programs and empowers marketers with valuable recommendations to guide their choices.

AskAira: An AI Assistant for Marketers

Capillary’s advanced AI chatbot, aiRA, is central to Generative Loyalty and takes full advantage of the Nudge Framework, incorporating Nudge Theory in the context of Loyalty Marketing. Using the Capillary platform with aiRA’s content nudges can give you an upper hand against the competition when looking to improve customer engagement with Nudge and deliver a great experience.

aiRA’s Capabilities

aiRA leverages the Nudge Framework to help enhance loyalty solutions! The Nudge Framework revolves around the nudge theory, which seeks to understand how people think and make decisions. The framework attempts to improve decisions while modifying unproductive influences, such as setting up a promotion but not activating it.

Designing nudges is very complex — but that’s where Generative Loyalty and aiRA’s AI capabilities come in! As an example, the following are some common digital nudges used in loyalty solutions:

Well-timed prompt (micro-nudge) that reminds users if we have missed something and urges action.

Optimal heads-up in the form of user notifications based on their usage pattern.

An incentive that fosters users to use a service.

Generative Loyalty from Capillary is a product-led way to help loyalty marketers and brands improve the performance of their marketing programs by leveraging artificial intelligence (AI). One of the layers across the Capillary suite of products, the nudges can be broadly categorized into three kinds:

Type 1 (Data-led Nudges): Know how your program is doing and potential disruptions to watch out for.

Type 2 (Platform best practices): Low-hanging fruits to leverage product features.

Type 3 (Proactive Nudges): New initiatives that can boost program performance to the next level.

As part of Generative Loyalty, the nudge framework empowers customers to be independent and mitigates turnaround clarifications. Although strategic initiatives, deep dives, and new long-term engagements are the current approaches adopted by Capillary, Nudge is the answer to streamlining the processes.

Preparing for a Generative Loyalty Future

Generative Loyalty and hyper-personalization will soon be the new standard for customer loyalty and engagement. By leveraging Generative Loyalty from Capillary, brands can stay ahead of the curve and differentiate themselves and their loyalty solutions from competitors early.

Capillary’s end-to-end platform is a suite of products like Loyalty+, Engage+, Insights+, and Anywhere Commerce+. The Capillary CDP (customer data platform) is underlying all this, powered by aiRA (artificial intelligence framework).

Contact Capillary to learn more about Generative Loyalty and how it can enhance your brand’s loyalty solution!

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FAQs

1. What is Generative Loyalty?

Generative Loyalty is an advanced AI-driven framework that uses artificial intelligence (AI) and large language models (LLMs) to create hyper-personalized, dynamic, and adaptive loyalty programs. It continuously optimizes campaigns, incentives, and customer experiences in real-time to drive engagement and retention.

2. How does Generative Loyalty improve customer engagement?

Generative Loyalty enhances engagement by delivering tailored recommendations, dynamic rewards, and personalized experiences across multiple channels. By analyzing customer behaviors in real-time, it ensures interactions are timely, relevant, and valuable, fostering stronger brand connections.

3. Why is Generative Loyalty considered a game-changer in customer retention?

Generative Loyalty transforms static loyalty programs into dynamic ecosystems powered by AI. It uses predictive analytics and real-time insights to anticipate customer needs, ensuring personalized interactions that build trust, satisfaction, and long-term loyalty.

4. How can brands benefit from Generative Loyalty?

Brands can benefit from Generative Loyalty by:

Delivering hyper-personalized experiences.

Increasing ROI through real-time optimization of loyalty campaigns.

Building emotional connections with customers.

Reducing operational inefficiencies through AI automation.

5. How does Capillary’s platform power Generative Loyalty?

Capillary’s platform, powered by aiRA and tools like Loyalty+, Engage+, and Insights+, integrates Generative AI to deliver seamless, personalized, and efficient loyalty solutions. The platform’s real-time data analysis and multi-channel capabilities ensure that loyalty programs remain impactful and future-ready.

Why Omnichannel Strategies Work in the UAE: Driving Success for Modern Enterprises

Posted on December 4, 2024 by Capillary Marcom

The UAE and the Middle East offer unique opportunities and challenges for marketers navigating a dynamic, multi-cultural, and multilingual landscape. While countries like the UAE and Saudi Arabia share similarities in culture and habits, their differences—like variations in spoken Arabic—highlight the complexity of effectively reaching diverse audiences.

The media landscape is incredibly fragmented, with over 300 TV channels, 3,000 registered print titles, and countless blogs and digital platforms. For brands, crafting impactful omnichannel marketing strategies in the UAE becomes essential to breaking through the clutter and connecting with audiences. By leveraging omnichannel strategies in the UAE, brands can unify their messaging and provide a seamless experience across traditional and digital platforms in this vibrant region.

The Convergence & Contradiction

In the Middle East and North Africa (MENA) region, digital advertising expenditure has experienced significant growth, reaching approximately $5.5 billion in 2022—a 20% increase from the previous year. Projections indicate that this figure will more than quadruple to $25.5 billion by 2024, positioning MENA as the fourth-largest digital advertising market globally.

Despite this surge in digital ad spending, traditional media consumption remains robust. In 2024, the TV and Video market in MENA is projected to generate revenues of around $12.88 billion, with traditional TV and home video contributing approximately $8.08 billion.

This data underscores the importance for marketers to adopt integrated strategies that encompass both digital and traditional platforms to effectively engage the diverse MENA audience.

The UAE presents a unique opportunity for marketers, boasting a population of approximately 9.55 million, with an impressive internet penetration rate of 99%. Notably, the number of social media user identities exceeds the total population, indicating that many residents maintain multiple accounts across various platforms.

This dynamic audience engages across diverse traditional and digital channels, including television, newspapers, Facebook, Instagram, Google Ad Networks, Snapchat, and TikTok. The average daily time spent using the internet across all devices is 8 hours and 11 minutes, with social media accounting for 2 hours and 58 minutes of this usage. This high level of connectivity and engagement underscores the importance of integrated marketing strategies to effectively reach and resonate with consumers in the UAE.

Today’s consumers want more than points—they crave loyalty programs that truly connect. Ready to elevate your loyalty game? Download our eBook Goodbye to 80s Loyalty and discover how AI, insights, and memorable experiences can transform your approach!

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Why Implementing Omnichannel Strategies in The UAE Would Work

Omnichannel marketing is simply unifying multiple marketing channels in a way that creates a logical progression for your target audience to progress from one stage to the next. The various channels (SMS, Email, Ad Networks, Facebook, YouTube, Instagram, etc.) need to work together and provide context for the messages your customer receives as they move from one channel to another. The biggest advantage of omnichannel strategies is that it creates a win-win situation for both the consumer as well as the brand. From a brand’s perspective, it improves engagement/conversion rates at a higher ROI; for customers, it provides a connected brand experience regardless of the channel they choose to interact with the brand.

An omnichannel marketing strategy essentially stands at the crossroads that connects in-store retail, e-commerce, customer engagement & marketing.

There are several reasons why retailers and brands in the UAE are perfectly poised to leverage the benefits of an omnichannel strategy to improve brand loyalty.

Investments in AI and Big Data

Omnichannel marketing leverages AI and Big Data to improve personalization and improve ROI by automating the channel mix for every customer based on his/her response and conversion rates. The UAE government has been focused on investing heavily in AI and digital initiatives. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai recently approved the UAE’s action plan on artificial intelligence and digital economy.

In April 2022, the UAE launched its Digital Economy Strategy, aiming to double the digital economy’s contribution to GDP from 9.7% to 19.4% within ten years.

Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, released a comprehensive plan that focuses on providing tools and infrastructure to support the UAE’s leadership in digital transformation initiatives. The larger business community in the region shares a similar view in terms of technological adoption; a PwC report states that digital transformation is the key priority for 88% of Middle East retail CEOs.

Accelerated E-commerce Growth

The UAE’s e-commerce market is projected to reach an estimated market volume of $10.56 billion by 2029.

In 2024, smartphone shipments in the Middle East (excluding Turkey) reached 11.5 million units in Q2, marking a 20% year-on-year increase. This surge indicates a growing consumer preference for mobile commerce, with many users finding it both easy and convenient. As the region continues its digital transformation, the trend towards mobile shopping is expected to persist, reshaping the retail landscape.

Significant Millennial Population

Millennials, accounting for a substantial portion of the UAE population, are characterized by high digital savviness and significant spending potential. They are among the heaviest consumers of digital content, spending considerable time online daily across multiple channels. Video content networks, especially YouTube is an extremely popular channel within the millennial demographic and their shopping was influenced by YouTube videos/ads.

Surge in Social Media Usage

The UAE boasts a social media penetration rate exceeding 100%, indicating that many residents maintain multiple accounts across various platforms. YouTube leads with 8.65 million users, followed by Facebook with 7.77 million, and Instagram with 6.68 million. Among messaging apps, WhatsApp has the highest adoption rate with 7.77 million active users. A recent survey indicates that 92% of UAE consumers have altered their shopping habits, with a significant shift towards online purchases.

Marketers can leverage omnichannel marketing to create highly engaging, rich media content across multiple platforms to progressively nudge users to the next step in the purchase cycle.

Why Capillary is Your Ideal Partner for Omnichannel Success in the UAE

While omnichannel marketing is universally relevant and seeing rapid adoption across the globe, the United Arab Emirates is fortuitously placed to unleash the full potential of the technology.

Capillary Technologies is perfectly positioned to help enterprises succeed with omnichannel strategies in the UAE. Whether it’s engaging millennials through video content, enhancing mobile commerce, or tapping into the growing e-commerce market, Capillary is your partner in creating loyalty strategies that deliver measurable impact.

From driving personalized engagements to automating channel mixes and creating loyalty programs that truly resonate, Capillary empowers businesses to build lasting customer relationships in the region.

Ready to redefine omnichannel marketing and drive loyalty in the UAE?

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FAQs

What is omnichannel marketing?

Omnichannel marketing is the seamless integration of multiple channels to guide your target audience through a smooth and logical journey from one stage to the next.

Why would omnichannel strategies work for enterprises in the UAE?

Omnichannel marketing strategies would work for enterprises in the UAE due to various reasons like huge investments in AI and Big Data, a jump in E-commerce growth, a significant millennial population, and a surge in social media usage.

How can Capillary drive omnichannel strategies for enterprises in the UAE?

Capillary empowers enterprises with omnichannel strategies, personalized engagements, and impactful loyalty programs to build lasting customer relationships harnessing the power of AI, ML, and Generative Loyalty.

What Are Dark Stores in Grocery Ecommerce?

Posted on December 4, 2024 by Capillary Marcom

What is propelling the increasing usage of online grocery shopping and the propagation of dark stores? It’s simply the sheer convenience it offers to the modern day working class. Surveys find that up to 72% of customers prefer to buy groceries online due to either convenience or time constraints.

Globally, the grocery delivery market is set to achieve an incredible revenue of US$786.80 billion by the end of 2024. Furthermore, this market is anticipated to grow at a compound annual growth rate (CAGR) of 26.8% from 2023 to 2030.

Grocery ecommerce businesses need to consider several things in gearing themselves up for this fast-paced growth in the online grocery market. One of the main factors is naturally the supply-chain — where to store produce and how to quickly deliver them to the consumer. While partnering with brick-and-mortar retailers is certainly one way to go about it, the newer supply chain formats like dark stores offer a much more advanced model of fulfilling electronic grocery orders.

What Are Dark Stores?

Despite the slightly ominous name, dark stores are a great, positive concept forward. The reason behind the name is because shoppers never see the inside of a dark stores, it basically exists in the dark for them.

Dark stores were initiated in the UK and meant to serve a focused purpose – to offer click-and-collect fulfilment for online orders. As such, these stores do not exist in prime real-estate spots such as high streets or shopping malls. They are instead tucked away in relatively nondescript establishments strategically at locations with great road connectivity.

Inside, you have pickers scurrying to collect ordered items for online shoppers and send them off for delivery. Outside, you have vehicles shuttling in and out, picking one order after another for delivery to addresses in the earmarked pin codes.

If the store is highly mechanized, you may even see robots picking groceries and items, requiring, of course, higher inventory accuracy, but ensuring in return much greater efficiency.

Challenges Dark Stores Face in Grocery Ecommerce

Grocery has its own unique category level challenges, such as the need for a high number of SKUs and, of course, item perishability. Moreover, online grocery stores are much more dispensable, with the ‘good old’ street-side vendors and marts readily available and now also offering near-real-time doorstep delivery to their hyper-local customers.

All this means that the challenge in grocery eCommerce lies not in getting the online order alone, but in fulfilling the same and getting customers to keep coming back week after week, or day after day!

While everyone from heavily-funded startups to ecommerce mammoths like Amazon and Flipkart have taken a shot at hyperlocal commerce for grocery, none of them are yet to get it totally right. With brands like Spar and Reliance Smart investing in hypermarket ecommerce solutions and joining the fray, the segment has become even more competitive.

Here, dark stores come into the picture. Let’s see how they work especially well for groceries by addressing the following challenges:

The SKU Challenge

Someone needs a 6-loaves pack of gluten-free bread, and someone else needs a multi-grain, full-size pack of chemical-free and preservative-free home-made bread. When it comes to grocery, there could be as many SKUs for practically the same item as the number of consumers, simply because when it comes to food, everyone likes to have it their way.

By focusing on storage and click-and-collect functionality, dark stores can optimize SKU management in many ways. One, they save real-estate costs by steering clear of high traffic zones in the towns. Two, they can cater to multiple online grocery stores at once, so real-estate costs get shared. Three, they also save space because they do not have to bother about the shopping experience and display or in-store advertising.

Thus, dark stores can accommodate much more variety per item at a much lesser space cost. What’s more, the scope for better SKU management increases fulfillment accuracy and reduces mix-ups, which are otherwise commonplace in the delivery of groceries ordered online.

·The Perishability Challenge

There’s yogurt, there are pulses, and there’s the fresh spinach, all within the same order. Grocery involves items with all kinds of expiry windows. And they are all to be delivered together in their ideal states. Crackers mustn’t crack, liquids mustn’t spill, and what’s airtight must remain so.

It is not easy to achieve this at scale. Unless there are dedicated places and processes designed to serve this very purpose – to retain item freshness not just for the duration of its storage but also till it reaches the consumer’s plate! It requires impeccable inventory management, stock replenishment and order fulfilment – all of which needs to work seamlessly so that the window between off-the-store-fridge and in-the-home-fridge is as short as possible.

Dark stores come to rescue by dedicating the much-needed time, space, and visibility for stock managers and pickers to manage order fulfillment while maintaining desired freshness levels for all items in the order. Brands will also need to invest in omnichannel solutions that support hyperlocal capabilities like geo-fencing and localization.

The Fulfilment Window Challenge

Online grocery shoppers do not think beyond a few days. Orders happen not so much in foresight, as out of emergency. And delivery is expected the same day, at the most the very next day – adding to the speed challenge.

Consider a situation where online orders may flood in at midnight, and delivery may be expected in time for the next day’s breakfast preparation, i.e., in the wee hours of the morning. Quite obviously, the brick-and-mortar grocery retailers are a bad site for the fulfillment of such an order. Hence, another grocery eCommerce challenge, that dark stores can address much better.

Benefits Of Dark Stores

By addressing such challenges specific to grocery ecommerce, dark stores promise multiple benefits for the online storer as well as for the end consumers:

Easier to Serve Large Areas

Dark stores can serve multiple locations with high order density, unlike grocery retail stores, which come with space and volume limitations.

Greater Product Availability

Being dedicated to online order fulfillment, dark stores offer better visibility into stock availability and help e-tailers plan smarter.

Reduced Cost of Operations

Real-time visibility, space and time optimization, and efficient supply chain together make dark stores a much wiser choice from a financial angle, considering the volatility in the grocery market.

Better Customer Service

Whether it is 24×7 order fulfillment, picking accuracy, or living up to the quality promise, dark stores are in a much better position to make it possible.

Future Of Grocery Ecommerce

Indeed, there are numerous challenges with grocery ecommerce. The consumers depend highly on the neighborhood stores, they like to touch and feel products in the before purchase, and they think of shopping mostly when the next meal is due!

Yet, the overall picture looks good, given the market size and projected growth. While UK and USA lead the pack in terms of percentage of online grocery shoppers, with USA having 67% of their shoppers choosing to buy groceries online. Other emerging markets are gradually establishing themselves and catching up, for example China having the highest market revenue of 2024 at a staggering US$266.00bn and is forecasted to reach US$1.12 trillion in 2028.

Top Loyalty Programs in Saudi Arabia: 6 Picks Delivering Exceptional Value

Posted on December 4, 2024 by Summaya

Customer retention has become more important than ever before. While marketers are strategizing best practices, customer loyalty has become an integral part of their strategy. Indeed, loyalty is the best way as it enables brands to win customers’ hearts and improve the conscious consumer’s confidence in the retail landscape. However, loyalty is still an emerging concept in Saudi Arabia, probably due to the recent and gradual social liberalization in the kingdom.

With Saudi enterprises comprehending the importance of loyalty in their marketing strategies, we take a look at the top loyalty programs in Saudi Arabia that have been very successful in customer engagement and retention efforts.

Our Pick for the Top 6 Loyalty Programs in Saudi Arabia

1. Nuhdeek program by Nahdi Medical Company

Nahdi Medical Company is a leading chain of Saudi retail pharmacies, and its ‘Nuhdeek’ loyalty program fits all its goodness in a one-stop mobile application. Customers can register on to the loyalty program and experience a seamless purchase journey, beginning from an advanced pharmacy locator that helps customers locate the nearest store, upto a variety of convenient digital payment options. After offline store purchases, customers can easily upload a picture of their prescription to earn points. Customers can get 1 point for each 1 SAR spent, and after collecting 1000 points, they can be redeemed at any Nahdi pharmacy. The app also provides general medical information that customers are keen to know.

2. Iktissab loyalty program by Othaim market

Abdullah Al-Othaim markets have over 200 supermarkets, hypermarkets, wholesale outlets and convenient stores across the kingdom. The company’s Iktissab loyalty program aims to provide the best shopping services to customers, by rewarding discounts and offers by Othaim markets and other third-party rewards. Special offers and discounts can go upto 50% on products like smart phones, computers, food and bakeries. The best part about Iktissab card is that it can also be used with other partner brands, restaurants, international brand stores, and Saffori Land. Loyal customers enjoy special benefits during festival seasons.

3. Al Fursan program by Saudi airlines

Members of the AL Fursan program by Saudi Airlines get access to a world of benefits including free tickets, upgrades, global lounge access, additional luggage allowance and more. Apart from these premium rewards, customers can also earn and redeem miles on a network of other global airlines. They can also get offers on banks, hotels, car rentals and telecommunication brands that have partnered with Saudi Airlines. Their three tiered loyalty program namely – Alfursan Blue, Silver and Gold offers varied benefits across different tiers.

Interestingly, Saudi Airlines also has an exclusive family membership program that enables customers to earn more rewards by nominating upto 8 family members. Members can be the customer’s spouse, children of age 2 and above, parents, adopted children and home workers. Each of them will get a separate membership ID through which families can together enjoy the benefits of the program.

4. Jarir discount card by Jarir bookstore

In an age where buying books has slowed down across the world as online reading has picked up drastically, Jarir bookstore’s loyalty program has pushed more people to buy books and stationery. The Jarir Discount Card guarantees a 10% instant discount on all school and office supplies, arts and crafts supplies, books, and computer bags. The brand also offers great deals on other product ranges including its smartphone, laptop and tablet accessories collection. Offering convenience for customers, the card can be used both at the offline store and on their e-commerce platform.

5. Qitaf loyalty program by STC

STC’s Qitaf loyalty program aims to show gratitude to loyal customers, opening doors to a variety of exclusive and high-end personalized services. Customers can easily enroll through the mystc app and begin collecting points by paying their mobile bills through the app. STC has partnered with several restaurants, electronic stores, fashion and cosmetic stores, sports stores, travel and transportation services, petrol services, charity organizations and more to offer a wide range of benefits for their customers.

There are 4 tiers in this loyalty program namely Qitaf Classic, Tamayouz Gold, Tamayouz Platinum and Tamayouz Diamond. Differential benefits are provided based on the customer’s tier entitlement.

6. Tawasul program by Arabian Oud

While spreading sweet, timeless fragrances across the globe, the popular perfume brand Arabian Oud has a tiered loyalty program called the Tawasul program. Based on the customer’s annual purchase value, it categorizes customers into four tiers – bronze, silver, golden, and diamond. With a simple registration gateway, Arabian Oud offers reward and discount points that can be redeemed at any of their offline stores. Loyal customers are also privileged to get early access to offers, discounts, and other information before other customers.

Taking over the Kingdom’s loyalty space the Capillary way

From a basic earn-and-burn model to physical loyalty cards, Saudi Arabian brands have evidently evolved towards reward-rich digital programs. Brands are gradually maturing in the loyalty space, increasingly adopting advanced technologies to power their marketing strategies. But there’s more opportunities in the horizon – capturing customer data. In the coming years, we may see a transformed Saudi Arabian retail landscape, where customer data will be at the center of marketing, and brands will catapult accurate and comprehensive data and begin to unlock its true potential.

Looking to gear up for the untapped potential market of Saudi Arabia? Connect with our expert team today to find out more.

Enterprises have come a long way from basic earn-and-burn models and physical loyalty cards to embracing reward-rich digital programs. As they mature in the loyalty space, they’re increasingly turning to sophisticated technologies to supercharge their marketing strategies. The real game-changer on the horizon? Harnessing customer data. In the coming years, we expect to see a transformed Saudi retail landscape, with customer data taking center stage, enabling brands to leverage accurate and comprehensive insights to unlock its full potential.

Are you ready to tap into the vast potential of the Saudi market? Connect with Capillary Technologies today. Our expertise in driving successful loyalty strategies, powered by our robust AI-driven loyalty solutions, makes us the perfect partner to help you navigate and excel in this dynamic landscape. Let’s explore how we can transform your customer engagement together!

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FAQs

What are the top loyalty programs in Saudi Arabia?

Top loyalty programs in Saudi Arabia include the STC Qitaf, Al Rajhi Mokafaa, Saudi Arabian Airlines Alfursan, Jarir Bookstore Rewards, and Panda Rewards. These programs offer diverse benefits like points accumulation, discounts, and exclusive member offers.

How do loyalty programs in Saudi Arabia benefit customers?

Saudi loyalty programs give customers incentives such as points on purchases, discounts, exclusive promotions, and personalized offers. These benefits enhance the shopping experience and encourage repeat business.

What makes the STC Qitaf program stand out in Saudi Arabia?

The STC Qitaf program stands out due to its extensive partner network, allowing members to earn and redeem points across various sectors, including retail, travel, and dining. It also offers flexible redemption options and exclusive deals.

How do businesses in Saudi Arabia leverage loyalty programs?

Businesses in Saudi Arabia use loyalty programs to build stronger customer relationships, increase repeat sales, and gain insights into consumer behavior. These programs help businesses tailor their marketing strategies and improve customer retention.

How can Capillary Technologies improve Saudi loyalty programs?

Capillary Technologies provides advanced tools for creating and managing effective loyalty programs. Their solutions include personalized marketing, customer analytics, and seamless integration, helping Saudi businesses enhance customer engagement and loyalty.

Brand Loyalty: Must Know Holiday Season Marketing Trends & Strategies

Posted on December 3, 2024 by Bharat Menon

Tis the season! And marketers have more reasons to be merry this holiday season.

The holiday season with the likes of Cyber Monday, Black Friday, Christmas, and New Year is the Super Bowl of shopping—retailers gear up for a fiercely competitive landscape to win customer loyalty. But amidst the hustle, there’s an unparalleled opportunity to do more than just drive revenue—setting the stage to foster emotional and long-lasting relationships with your customers. It sets up the momentum to turn seasonal shoppers into brand evangelists.

The National Retail Federation forecasts a total holiday spending of between $979.5 billion to $989 billion in November and December, the stakes and the opportunities are higher than ever. So, what’s the secret sauce to fostering lasting connections during this festive frenzy? Loyalty Marketing

Holiday Season Market Trends To Watch Out For

1. The Research-First Shoppers

With a wealth of product reviews, unboxing videos, and price comparison tools at their fingertips, customers are doing their homework long before clicking that ‘add to cart.’ Strategic loyalty marketing efforts can help cut through the noise and secure that purchase. Remember, today’s holiday shoppers aren’t just shopping—they’re curating.

2. Meet Shoppers Where They Are

Around 33% of holiday shoppers prefer online shopping, with many starting their wish lists as early as three to four weeks in advance. The goal? Be present at every touchpoint, turning browsing into buying with loyalty marketing. Seamlessly bridging the online and in-store experience is crucial. Options like online shopping with in-store pickup or same-day delivery can cater to diverse shopping preferences while nurturing a memorable holiday shopping journey.

Retail Dive

3. The Rise of Self-Gifting

Let’s face it: we’ve all done it. You set out to buy a gift for your friends and family, only to add it for yourself to the cart. And you’re not alone—75% of shoppers admit to indulging in self-gifting at least once with 13% doing it regularly. This trend has strong ties to the wellness movement, as consumers seek little acts of self-care amid holiday chaos. For brands, this is the perfect time to leverage gift cards, exclusive ‘treat yourself’ offers, or bundles that encourage shoppers to snag something for themselves while they’re at it. Think of it as gifting with a side of indulgence.

4. Combatting Buyer’s Block: Simplify, Simplify, Simplify

The paradox of choice is real of holiday shoppers report feeling overwhelmed by too many options—Buyer’s Block, the holiday shopping equivalent of decision fatigue. Leverage loyalty platforms to curate tailored recommendations, simplify product discovery, and make purchasing decisions effortless to drive hyper-personalized experiences that cut through the noise. Think less chaos, more clarity, and a shopping experience that leaves customers feeling confident instead of stressed.

Accenture Research Report

Holiday Season Marketing Strategies To Implement Right Away

1. Refurbishing the In-Store Experience

Let’s face it—online shopping might be convenient, but it can never completely replace the magic of walking into a store during the holidays. Retailers are rediscovering the charm of the in-store experience, transforming their spaces into festive moods to captivate shoppers. In-store gift ideas like the Christmas Raffle prize, free refreshments, and a special corner for your kids to splurge in while you shop stress-free. All these could increase your overall store footfall and might as well ensure repeat purchases if you tie it up with the timely customer loyalty program.

2. Riding High with Robust Customer Loyalty Programs

The emotional quotient of people is quite high during the holiday season. A reason why, building emotional loyalty programs would give your brand the edge in comparison to your competitors. Loyalty programs have been the biggest indicator for brands to personalize messages and direct them to consumers at different touch points in their shopping journey to stay connected with the brand. Discounts are not the only tool we are talking about here! Building unique experiences like offering gift cards during the holiday season or creating a full-fledged holiday loyalty campaign could woo customers to not only redeem points but also earn more points that could be utilized even after the holiday season. Gamification elements like creating a holiday season wish list leaderboard in your brand’s loyalty app could also result in higher customer engagement.

3. Elevating E-Commerce Shopping with the In-Store Experience at Home

E-commerce has had a remarkable evolution, but how do you replicate the magic of in-store shopping for customers browsing online? By blending the best of both worlds. High-quality visuals, DIY product videos, and 360-degree views aren’t just nice-to-haves—they’re essentials for helping customers feel confident in their purchases.

But why stop there? Introducing features like chatbots that act as virtual shopping assistants or “buy online, pick up in-store” options can create seamless customer journeys. Educational content, like product comparisons or styling tips, can further shorten decision-making timelines while empowering shoppers. The goal? To bring the tactile, personalized experience of in-store shopping right to your customer’s home screen.

4. Launching a New Year campaign in January 2025

As a brand, marketers can start the New Year on a high note by creating a customer-centric marketing campaign right at the beginning of the year. People who spend more during the holiday season often hunt for economically-priced yet value-driven goods during the first quarter of the year. Introduce new products and services, communicate with the right messaging on the right channel, and stick to personalization while marketing your brand.

Brands that anticipate customer needs, embrace personalization, and meet shoppers where they are will not only thrive but also set the stage for long-term loyalty well beyond the holidays.

Takeaways

The holiday season is a time for giving, sharing, and creating magical moments for your customers. It’s the perfect opportunity for your enterprise to shine by crafting thoughtful marketing campaigns that not only drive sales but also foster lasting connections. With a well-planned and agile loyalty marketing strategy, you can turn festive cheer into customer delight and loyalty that lasts well beyond the holidays.

Unwrap your brand’s potential this season. Connect with our Loyalty Experts to plan a winning strategy and make this holiday season one to remember—for both your business and your customers. Happy holidays!

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FAQs

Why is the holiday season important for Retailers?

The holiday season sets the stage to foster emotional and long-lasting relationships with your customers. It sets up the momentum to turn seasonal shoppers into brand evangelists.

What are some of the Holiday Season Market trends to watch out for?

Strategic loyalty marketing to cater to well-informed shoppers

Omnichannel efforts to meet your shoppers where they are

Increasing trend of shoppers self-gifting

Tackling buyer’s block: make holiday purchases easy for your customers

How can Capillary drive your marketing efforts this Holiday Season?

By leveraging Capillary’s robust and comprehensive product suite—like Rewards+ for driving creative promotions and Loyalty+ for implementing hyper-personalized strategies—you can be confident in building loyalty that lasts beyond the holidays.

Related Blogs

Exploring 6 Retail Loyalty Campaigns in the US

Chinese New Year Special- Customer Engagement Gamification Ideas for Brands

Building Better Partnerships: Introduction To Channel Loyalty Programs

5 Must-Read Books on Customer Experience to Make Better Loyalty Programs

Posted on December 3, 2024 by Summaya

Customer experience is the foundation of brand loyalty. As businesses adapt to evolving consumer expectations, staying ahead requires continuous learning. Whether you’re a CX leader, a marketer, or a business owner, the right insights can transform how you engage customers.

We’ve curated a list of the best books on customer experience, service management, and loyalty strategies that will help you refine engagement, build trust, and create memorable interactions. These books provide practical frameworks and forward-thinking strategies, making them essential reads for 2025.

Fret not; we’ve rounded up five must-read books on customer experience. Read on to learn how to make better loyalty programs.

Best Books on Customer Experience & Loyalty to Elevate Engagement

Zendesk highlights that you should “put customers at the top to improve your bottom line.” Nearly 75% of business leaders reported a direct link between customer service and business performance. Here are some interesting facts and figures about customer experience:

93% will spend more on companies offering their preferred customer service options.
90% will spend more on businesses providing personalized customer experiences.

As such, driving better customer experiences is the top priority of 57% of companies in the next 12 months. What better way to achieve this objective than to offer loyalty programs as part of your strategies? They can help acquire new customers for your business and retain them for good.

We’ve scoured the literary world to bring you the top five books on the customer experience that will help you do just that. Read below.

1. CUSTOMER LOYALTY: How to Earn It, How to Keep It by Jill Griffin

As the name suggests, this book is a practical guide to winning and keeping customers for good. The book offers practical advice for businesses of all sizes, with case studies and examples.

Griffin stresses the value of understanding customer needs and preferences. She cites that companies should personalize the customer experience to meet those needs. She also provides guidance on measuring customer loyalty and using customer feedback to improve the customer experience.

Priyam Chawla, Marketing Manager at Jolly SEO, takes customer loyalty in a different light. “It is not just a result; it is a journey. Earning and keeping such loyalty requires relentlessly focusing on customer needs and desires. It’s a continuous process requiring passion and commitment to excellence in every interaction.”

2. THE NORDSTROM WAY TO CUSTOMER EXPERIENCE EXCELLENCE: Creating a Values-Driven Service Culture by Robert Spector and BreAnne O. Reeves

This book provides an in-depth look at the customer-centric culture of Nordstrom. Nordstrom is one of the world’s most successful retailers. It has set the standard for customer happiness amid the other department store competitors.

The authors highlight creating a values-driven organization that prioritizes customer service. It shows some examples from Nordstrom itself and even other companies. It also shares some valuable insights from industry experts.

Jerry Han, CMO at PrizeRebel, recommends fostering a customer-focused organization. “As a business leader, you should encourage your employees to put customers at the center of everything they do. Delivering exceptional customer experiences is not just a goal; it should be a way of life.”

3. UNCOMMON SERVICE: How to Win by Putting Customers at the Core of Your Business by Frances Frei and Anne Morriss

This book provides a framework for creating exceptional service experiences. The book suggests focusing on some revenue-generating tasks while spending less time and energy in other areas. That is because you can’t simply do exceptionally well in everything.

The authors argue, however, that businesses should prioritize customer service to succeed in today’s competitive marketplace. The book also provides examples of companies having implemented this unique strategy.

Tom Golubovich, Head of Marketing & Media Relations at Ninja Transfers, suggests being tactical in business strategies. “In a world where customers have more options than ever, delivering not the usual service is the key to winning loyalty. That will set your business apart from the rest and help you acquire and retain customers for the long term.”

4. CUSTOMER SATISFACTION IS WORTHLESS, CUSTOMER LOYALTY IS PRICELESS: How to Make Customers Love You, Keep Them Coming Back and Tell Everyone They Know by Jeffrey Gitomer

The author believes that customer loyalty is the key to long-term success. As such, Gitomer challenges us to go beyond customer satisfaction and aspire to achieve customer loyalty.

The book includes tips on winning customer loyalty through effective communication, follow-up, and problem resolution. Its Customer Service Self-Evaluation Test is one of the most effective tools in the book. It provides an honest review of your strengths and weaknesses in customer service.

Jesse Hanson, Content Manager at Online Solitaire, emphasized establishing long-term customer relationships. “Customer satisfaction is merely a baseline for success, but customer loyalty is the ultimate measure of greatness. It means going above and beyond the customers’ expectations to earn their loyalty.”

5. HUG YOUR HATERS: How to Embrace Complaints and Keep Your Customers by Jay Baer

This book offers a practical guide to managing customer complaints. Baer emphasizes the importance of responding promptly and empathetically to all complaints, regardless of the channel received.

The book includes case studies and examples from a variety of industries. It provides practical advice on how to turn unhappy customers into loyal advocates.

Amy De La Fuente, Director of Public Affairs at Bosco Legal Services, encourages the value of getting customer feedback. “Complaints are not curses; they are opportunities. It’s not something to be feared or avoided. Rather, it’s a chance to engage with your customers and turn their negative experiences into positive ones.”

Boosting Customer Experience and Earning Customer Loyalty

Creating loyalty programs that delight customers and drive sales revenue is crucial to running a successful business. The books featured in this list serve as invaluable guides, offering expert advice on everything from customer service management to building brand trust.

Whether you’re looking to enhance customer retention, improve engagement, or design a best-in-class loyalty program, these books provide the knowledge you need to stay ahead in 2025. Investing in continuous learning today will set your brand apart in the years to come.

Contact a Loyalty Expert

FAQs

1. What are the best books on customer experience to read in 2025?

Some of the best books on customer experience include The Effortless Experience by Matthew Dixon and The Power of Moments by Chip Heath. These books provide practical strategies to enhance customer interactions and build brand loyalty.

2. How can books on loyalty programs help improve customer retention?

Books on loyalty programs, like Customer Loyalty: How to Earn It, How to Keep It by Jill Griffin, offer insights into designing effective rewards and engagement strategies that strengthen long-term customer relationships.

3. What is the difference between customer service books and customer experience books?

Customer service books focus on resolving issues and improving direct interactions, while customer experience books provide a broader strategy for creating seamless, end-to-end brand engagements. Both are crucial for building strong customer loyalty.

4. Why should business leaders read books about customer engagement?

Books about customer engagement help business leaders understand consumer psychology, improve touchpoints, and craft more personalized experiences that lead to higher satisfaction and loyalty.

5. How do customer journey books help in improving loyalty programs?

Customer journey books provide frameworks for mapping the buyer’s path, identifying pain points, and optimizing engagement. This ensures that loyalty programs are aligned with customer needs, leading to higher participation and retention rates.

7 Emotional Loyalty Examples That Strengthened Brand Emotional Connection and Loyalty

Posted on December 3, 2024 by Bharat Menon

“Emotionally connected customers spend up to 2x or more with their preferred retailers”

– States a Motista reasearch paper.

These numbers tell that customers expect brands to know their preferences and understand what they want & when. However, collecting customer reviews and knowing their preferences isn’t that easy. Brands need to work hard on earning shoppers’ trust and making them feel valued by resolving their issues and listening to feedback continuously. The tone of interaction truly makes a difference in building brand emotional connection and loyalty.

It’s time to infuse human experience into your brand if you haven’t yet. Wondering how you can make it happen? At Capillary, we’ve worked with 250+ brands across the globe which has resulted in a lot of insights. Here, we share some of the best brand emotional loyalty campaigns that have successfully worked for brands.

Emotional Branding Examples that Did Wonders for Brands Globally

Dove – Self Esteem Project

One of the world’s most recognizable beauty brands, Dove, made its way into women’s hearts with its Self Esteem Project. With this project, the brand pledged to empower young people to boost their self-confidence by breaking beauty biases. Under the project, Dove has been helping parents, mentors, teachers, and young leaders deliver self-esteem education for over a decade now. And, with their constant efforts, they’ve reached more than 82 million people. In addition to their educate the customer & build an awareness campaign, the brand took initiatives to support regional customers as well.

Their #TheBeautyTestStopsWithMe movement in India, a sequel to their wildly successful #StopTheBeautyTest movement, reaches into the hearts of mothers and daughters all across the subcontinent. It stands stronger in support of the arranged marriage reality in India, where women face matrimonial rejection for their looks. Per the campaign, Dove urges mothers who’ve faced such rejections to share their stories, dubbed “Mothermonials”, and challenge society in order to break the cycle and not let their daughters be treated as commodities, valued only by their looks. The campaign is woven around the idea of women accepting the beauty within – no matter their size, shape, or color. It’s empowering the audience with the confidence to accept the real beauty and not just what’s on the surface.

TOMS Shoes- Helps people ‘Do good’

“When you buy TOMS, you help fund access to mental health resources for the millions of people who need them,” reads the Impact page on Toms.com. TOMS shoes has followed an impact model to contribute to the community via which it shares ⅓ of its profits for grassroots good. It includes cash grants and partnerships with community organizations to drive sustainable changes and build more inclusive and diverse communities.

TOMS Shoes is a perfect example of a brand that takes the right blend of rational & emotional approaches to bridge the gap between its shoppers & the brand. TOMS is a B Corporation-certified company that supports sustainable living with greener packaging, greater use of sustainable cotton, and reduced carbon footprints. The brand supports the community, raising mental health awareness, ending gun violence, and working strongly to become an anti-racist organization with its partners. You can explore more of their approach & initiatives here.

Levi’s – Eco consciousness

Levi’s, an American clothing brand, took the initiative to plant a tree for every download of the Levi’s app in April 2021. In partnership with an NGO – Tree Nation, they realized this mission to promote afforestation and biodiversity protection. Since the launch of this initiative, they’ve planted over 30,000 trees in Madagascar. Per their metrics, since then, trees have captured over 900 tonnes of CO2!

Motivated by the same, the brand is taking the journey of plantation ahead and inspiring consumers worldwide to join this mission with them. One of the crucial benefits of the plant-a-tree campaign is you can contribute to the global cause simply by becoming a member of Levi’s and downloading an app. This gives more power to customers and raises the belief of the brand is responsible toward the community.

Procter & Gamble (P&G)- Social responsibility through education and more

Some brands believe in growing as a community, and P&G is surely leading among them. Being a trusted choice of more than 5 billion people in nearly 70 countries, it is committed to being the world’s most socially responsible company. The brand supports environmental sustainability by carbon footprint reduction campaigns like protecting forests, ensuring eco-friendly packaging, and educating employees to integrate sustainability into business plans.

Their CSR program P&G Shiksha drove a huge community impact for more than 4.5 million students across 2000 schools. Moreover, P&G readily contributed to families that suffered Kerala floods in 2018, cyclone FANI & floods in western India in 2019. During the COVID pandemic, they continued supporting access to education for underprivileged children, despite schools being shutdown. Within the organization, the brand voices gender equality and diversity & inclusion, having a team of 145 nationalities.

Samsung – Good Vibes

An act of goodness is meant to get the audience’s attention and contribute to the community for the greater good. Samsung Good Vibes is one such app Samsung built to ease communication for deafblind people. It lets users send messages using Morse Code simply by tapping on the screen, which deafblind users can do by sensing the vibrations. Of course, the app is available for people with normal sight & hearing as well to ease communications within the community both ways.

Unlike typical emotional marketing examples, Samsung touched upon an entire idea to creatively use its services to help the community as well as widen the client base. Though it hasn’t gotten much adoption, the idea helped sensitize people and certainly created an emotional appeal.

Amul- Nostalgia and Humour

A household name in India and increasingly across the world, Amul is known for its humorous and sometimes satirical takes on current events. The Amil Girl, as the mascot is known, was created in 1966, and she’s played a key role in the ads that have been simple yet extremely powerful commentary on current events.

Amul’s consistent ad campaign over the past 25 years has created such a strong emotional bond that it can be termed an impactful loyalty campaign. There’s no direct selling, the ads are honest and humorous, and that is what clicks with the people. Whenever in a shop trying to decide which butter to buy, if there’s the Amul girl on the cover of one packet, customers are most likely to buy that packet.

Shells’ Doctor Strange Promo

Knowing your customers’ interests and blending your company’s offerings around it rightly can create miracles for any business. No one understood this better than Shell plc. They recognized their audience’s craze for Doctor Strange and surprised them by planning a giveaway campaign around. Doctor Strange Multiverse of Madness promo offered Doctor Strange merchandise (caps, backpacks, pin badges, movie gift cards), discount coupons & free movie tickets on using their services. The promo was roughly planned for a month before the movie, and of course, it was hugely successful. The idea unveiled the secret society of marvel fans and helped Shell in earning more brand fans & add new customers nationwide.

Brand Emotional Connection and Loyalty is a Game-Changer

It takes time to earn trust, get brand-loyal customers, and build an emotional connection. And, if you give your customers enough time, attention, and consistently improve shopper experiences, you will gradually find them turning brand loyal.

To build brand emotional connection and loyalty, you need not wait for your target audience to be your customers. You can consider emotions as one of the crucial marketing strategies even at the brand awareness stage like what BMW in the 1970s used in its slogan ‘The Ultimate Driving Machine’ which is now changed to ‘Sheer Driving Pleasure. Think about the strong emotions you can evoke among people and design a program around it.

Are you considering incorporating an emotional approach to tie a virtual knot with your customers? If your response is affirmative, our loyalty and engagement experts are here to brainstorm the best path forward.

What are emotional loyalty campaigns?

Emotional loyalty campaigns focus on creating a deep connection between a brand and its customers. These campaigns, like the emotional branding examples shared above, go beyond transactional rewards to foster trust, love, and commitment towards the brand.

What benefits do brands that use emotional branding get?

Brands that use emotional branding benefit from building more robust and resilient customer relationships. Customers who feel a brand emotional connection are more likely to be loyal, advocate for the brand, and make repeat purchases.

What are some successful emotional branding examples?

Examples include Dove’s Real Beauty campaign, Apple’s community-building initiatives, and Nike’s motivational messaging. These emotional marketing examples effectively enhance customer emotional loyalty by creating connections at a deeper level.

What challenges arise in creating brand emotional connection and loyalty?

Challenges include accurately understanding customer emotions, creating authentic and impactful messaging, and maintaining consistent meaningful engagement. Brands must also ensure that their emotional loyalty campaigns resonate across different customer segments.

Top 5 Loyalty Programs in the Changing Malaysian Loyalty Landscape

Posted on December 2, 2024 by Gitanjali Mittal

In Malaysia, like the rest of the world, the significance of customer data in shaping loyalty programs was quickly recognized by brands. With events like the pandemic and recession throwing a wrench into traditional loyalty programs, forcing enterprises to come up with creative strategies to keep their customers engaged, with Malaysians gravitating towards the attractive discounts offered by online retailers, temporarily overshadowing traditional loyalty campaigns. However, as the allure of constant discounts faded post-pandemic, loyalty programs in Malaysia saw a resurgence, highlighting the strong preference Malaysians have for meaningful loyalty engagements.

As the country showed remarkable resilience in the face of adversity, brands responded by crafting more unique and personalized loyalty programs. In this blog, we’ll explore five pioneering loyalty programs in Malaysia that have successfully evolved to stay relevant and competitive in these changing times.

5 Trend Defining Loyalty Programs in Malaysia

1. Grab Malaysia

Grab proudly features itself as an ‘everyday everything app’ by Malaysians to provide value in varied verticals like food delivery and transport among others. Its loyalty program, GrabRewards’ prime feature is that they regard every Grab wallet payment as an opportunity to earn points. GrabRewards has adapted well to the changing times and customer behavior by making its program relevant to all user categories through a seamless tier system. By deploying personalized communication of tier benefits, users are driven to upgrade to higher tiers to experience enhanced benefits.

While driving users to spend more, Grab was also mindful to ensure that its rewards and incentives are made accessible to its users through low entry points, which in turn, drives higher adoption. The brand was also quick to react to customer sentiments by offering an extension of points validity with as low as 1 point earning to ensure customers kept all of their points active.

2. FoodPanda

FoodPanda is one of the largest food delivery platforms in Malaysia with extensive B2C offers. FoodPanda features Panda League, a popular loyalty program operating in the B2B space. Panda League is a unique rewards program that uses innovative and gamified methods to incentivize delivery agents for each order they fulfill. It enables delivery agents to redeem exclusive merchandise on a monthly basis. Such initiatives lift the spirit of delivery agents and motivate them to achieve more.

Panda League segregates the delivery partners into five tiers, Diamond, Platinum, Gold, Silver, and Bronze with varied privileges. The icing on the cake of the Panda League rewards program is that at the end of each quarter, the points would be collated and the outstanding delivery agent would receive grand prizes like motorbikes, gadgets, and more.

3. Super Dining

Super Alliance by Super Dining is the official loyalty app for the leading group of Japanese restaurants and food specialty stores in Malaysia. Super Dining allows the earning of loyalty points across its brand of Japanese restaurants in Malaysia. Customers need to display their mobile-based QR identifier during the course of payment to earn points seamlessly. The program offers a variety of offers and cross-brand voucher redemption. This encourages its customers to transact across its brands while using a single currency. To avoid queuing at the restaurant, the app offers table booking via their loyalty app which is a noteworthy feature, especially in pandemic times.

4. AirAsia BIG Rewards Program

The AirAsia BIG Rewards Program started off as an airline loyalty program and has expanded since then as a comprehensive super app that allows customers to earn points from various partners. It averages 500,000 sign-ups per month. Some key highlights of the AirAsia Rewards Program are as follows.

Exclusive partner promotions and offers: Leverage AirAsia BIG Rewards points across utilities like travel expenditures (via BigPay), lifestyle, points conversion across banks/loyalty programs, leisure activities, and AirAsia credit cards.
AirAsia xchange: The AirAsia xchange prides itself as ‘world’s first airline points exchange feature’ that allows it to convert AirAsia BIG Rewards points to partner points.

The AirAsia BIG Rewards Program is on a mission to democratize loyalty campaigns and make them a one-stop destination to leverage loyalty points ranging from flights to a variety of deals. Having won several prestigious rewards, the AirAsia BIG Rewards Program is a jewel in the crown of Malaysian loyalty programs.

5. MyTOWNKL Loyalty App

MyTOWN, a popular Malaysian mall with international brands and restaurants, cinemas, and leisure activities, is a landmark destination for adults and children alike.

In a unique category featuring mall loyalty, the MyTOWNKL app drives the MyTOWN loyalty program. The MyTOWNKL app makes shopping convenient for customers by updating them about the latest deals, events, and redeeming their rewards. The benefits of MyTOWN loyalty include –

Earning common currency points from various mall tenants, which encourages affinity to the mall.
App-driven facility featuring QR identifier to earn and burn points for vouchers.
Seamless earn process across merchants to issue points with the MyTOWN app instead of carrying out extensive PoS integrations.
Personalized engagement and latest information about mall events or major notices.

All new Landscape of the Malaysian Loyalty Programs

We have just scraped the tip of the iceberg in our exposition of renowned loyalty programs in Malaysia. Although mid-sized loyalty programs are currently in vogue in Malaysia, the stage is set for conglomerates to drive bigger loyalty engagements. Malaysia presents an ideal landscape, due to its progressive economy, for large companies to showcase their presence and drive robust loyalty campaigns.

We have attempted to kindle your interest with a few instances focusing on Malaysian loyalty. Although we have strived to keep the discussion as a checklist, we ultimately aim to share the best practices adopted by some of the loyalty programs in Malaysia. In a nutshell, adoption is far from overtaking acceptance of loyalty programs in Malaysia. Looking forward to leveraging the full potential of loyalty software for your brand in Malaysia? Connect with our expert team today to find out more about our loyalty solutions.

Schedule A Call

FAQs

What are the leading loyalty programs in Malaysia?

Leading loyalty programs in Malaysia include BonusLink, B Infinite, PETRONAS Mesra, AirAsia BIG, and Watsons VIP Card. These programs have adapted to the post-pandemic environment by offering more digital and contactless options for earning and redeeming rewards.

What makes PETRONAS Mesra a preferred loyalty program in Malaysia?

PETRONAS Mesra is favored for its extensive network of petrol stations, where members can earn points on fuel and non-fuel purchases. The program offers exclusive promotions, convenient point redemption, and value-added services.

How do Malaysian businesses benefit from loyalty programs?

Loyalty programs help Malaysian businesses retain customers, boost sales, and gather insights into consumer preferences. By leveraging these programs, businesses can tailor their marketing efforts, increase customer satisfaction, and drive brand loyalty.

Can Capillary Technologies support the evolution of loyalty programs in Malaysia?

Yes, Capillary Technologies offers robust loyalty solutions to enhance loyalty programs in Malaysia. Their platform supports digital transformation, personalized marketing, and data-driven insights, helping businesses adapt to post-pandemic challenges and opportunities.

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Top APAC Loyalty Trends 2025: How Brands Can Stay Ahead

Posted on December 1, 2024 by Anjali Pillai

Now more than ever, people buy most from brands that drive the highest affinity through digital media. And there is no region more mobile-friendly and digitally agile than the APAC region. 92% of shoppers in the SEA countries agree that they would be more enticed by loyalty programs while making purchase decisions. Marked by a permanent shift in lifestyle choices, Indian, Chinese, and Japanese consumers are particularly more loyal towards brands that generously and consistently reward them due to long-term retention strategies.

Over the past two years alone, there’s been a proliferation of loyalty-driven brand success stories from the overall landscape. Covering a diverse set of Asian loyalty programs, let’s dive headfirst into 5 APAC loyalty trends that promise ever-lasting value.

5 APAC Loyalty Trends That Will Reshape the Region

1. GENERATIVE LOYALTY FOR ENHANCED CUSTOMER EXPERIENCE

According to an Adobe survey, APAC consumers exhibit an unparalleled level of enthusiasm when it comes to the potential of Generative AI to enhance products and services, surpassing the interest of consumers in other regions like the US and Europe by nearly threefold. This unique regional fervor for AI-driven solutions presents a golden opportunity for brands to harness the power of generative loyalty. At its core, generative loyalty leverages artificial intelligence and loyalty software to create personalized and dynamic customer experiences. Check out Capillary’s robust Loyalty+.

Brands will reap a lot of benefits by jumping onto the AI bandwagon for their loyalty program. Firstly, they can employ AI-driven chatbots and virtual assistants to provide real-time assistance and personalized recommendations, making shopping experiences more convenient and tailored to individual preferences. Secondly, brands can utilize predictive analytics to anticipate customer needs and offer proactive solutions, thus fostering a sense of anticipation and satisfaction among their clientele.

Capillary’s AI-powered loyalty software is already helping several APAC brands get the most out of their loyalty programs, bringing in substantial revenue for the brands. Read more about how Capillary was able to drive sales for these brands here.

2. PAID OR SUBSCRIPTION-BASED LOYALTY

With the ultimate retail takeover of e-commerce, paid or subscription-based loyalty continued to rule the roost. McKinsey reported that 42% of consumers are bound to buy again once they pay the initial fee, and 50% are likely to be more loyal to the brand over competitors. In fact, paid loyalty programs have become not only fundamental determiners but also key competitive differentiators for the strongest brand-consumer relationships.

Across the APAC region, Amazon Prime is the biggest success story in terms of paid loyalty for offering a whole host of benefits with a single, one-time yearly subscription. Beauty brands like Sephora and popular fashion-retail brands like H&M also championed the paid membership with exclusive insider access and customized discounts.

3. GAMIFICATION

Gamification is riding high and is here to stay for long. To make loyalty programs more interesting and engaging at once, Shopee – a leading e-commerce platform in the SEA region and Taiwan – launched an exclusive tier-based rewards system that offers its shoppers customized vouchers for all their needs. Based on the total number of orders completed every 6 months, each customer achieves a unique loyalty tier on the gamified Shopee app. Each tier implies earning a virtual card simultaneously – Classic, Silver, Gold, and Platinum.

While all Shopee users start off with the classic tier, they can be upgraded to earn privileged customer vouchers easily as they continue to shop more. The first 10 completed orders mean moving on to the Silver tier, and so on.

The exclusive vouchers are spread over exciting brand deals, normal everyday essentials as well as cashbacks and discounts on overseas deals. Through its holistic, cycle-based approach, loyal customers are allowed to assess their purchases as per the rewards they generate and, thereby, continue to remain engaged but in an informed manner. This is a win-win situation for the brand and its customers, generating a long-term relationship that’s fulfilling.

4. EXPERIENTIALLY EXCLUSIVE LOYALTY

The airline giant, Emirates, is running its most successful premium subscription model that gives members access to free upgrades and generous discounts on tickets among other benefits. These include exclusive experiences such as the Emirates business lounge access, extra baggage allowance, and electronic passes which customers can avail to make their traveling more luxurious and at ease.

This program is called Skywards+ and it can be paid for through an annual fee-based subscription. The premium model offers the cash+miles option for availing earned credits on the next flight, while also opening lounge access across 10 countries across the world. If you’re a frequent flyer on Emirates who books paid tickets, the 20% bonus Skywards miles will add up, as will the 20% bonus Tier Miles for the most expensive subscription.

Crafting unique rewarding experiences that address the varying socio-cultural nuances of consumers is another major trend that’s taken the region by storm. Indonesia’s innovative telecom device distributor, Erajaya, recognized the value of offering different devices and plans for its customer base by designing an experience-based rewards ecosystem. With the introduction of Era Club, they disrupted the sector through an award-winning loyalty program that builds loyalty one customer at a time through multi-tier points earned and redeemed for different devices and their accessories.

Beyond persona-based personalization, this also looks into the differences in mobile preferences based on culture trends that are required to craft unique purchase experiences. The focus is on optimizing the end-to-end customer experience (CX) through a points-based mechanism that facilitates not only the ease of choice but also experiential satisfaction – driving brand loyalty significantly.

5. INSTANT GRATIFICATION

This is probably the most lasting trend to ever come about in the space of loyalty. All consumers in India for instance are constantly looking for instant rewards at their easy disposal. A standout loyalty program in the country is the Landmark Rewards Program. It offers all its customers the luxury of instantly redeeming a range of rewards such as flat savings across the apparel category the brand caters to. This award-winning program is a huge success for the brand as it also offers cardless rewards that can be redeemed across 250+ locations with exclusive offers pouring in at all times of the year. After an effortless and easy sign-up, customers are encouraged to spend to earn more benefits, explicitly tagging the program as ‘Earn and Spend’.

Often a cultural day of large-scale significance can also drive loyalty. In China, for instance, most food and beverage retailers offer samples of their products for free during festive occasions like the Chinese New Year. The special treatment through instant gratification meted out as free gifts allows for seamless and long-lasting connection with existing and new consumers. This is actually expected a lot more in China due to high cultural standards and demands from brands. To commemorate their members using the concept of a topical day, the Chinese Watson’s loyalty program celebrates every 5th day of the month with a special Member’s Day campaign when points are worth 5 times more than usual. This keeps consumers coming back long after the program ends.

Driving Loyalty Trends for Enterprises in the APAC Region with Capillary

The above APAC loyalty trends indicate how brands are evolving to enhance customer loyalty and drive engagement. With Asia Pacific customer trends shifting towards personalized rewards, digital transformation, and AI-powered loyalty software, companies must rethink their strategies to meet growing consumer expectations.

This is where Capillary steps in. With over 15 years of expertise in loyalty and customer engagement, Capillary’s comprehensive loyalty suite is designed to help enterprises across industries tap into emerging loyalty trends and craft next-gen loyalty programs. Our AI-powered loyalty program software is built to drive personalization at scale, maximize customer lifetime value, and create seamless omnichannel experiences.

Enterprises across retail, travel, hospitality, F&B, and CPG in APAC trust Capillary to future-proof their loyalty programs and enhance customer engagement strategies. Get in touch with our experts to explore how our loyalty software can help you implement these APAC loyalty trends and drive sustainable growth.

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FAQs

1. What are the key loyalty trends shaping customer engagement in APAC?

Some of the biggest APAC loyalty trends include AI-driven personalization, paid membership programs, gamification, instant rewards, and experiential loyalty. The region is seeing an increasing shift towards digital-first, real-time engagement models powered by loyalty program software.

2. How can brands in APAC leverage AI to enhance their loyalty programs?

AI enables hyper-personalization, predictive analytics, and real-time engagement. Brands can use AI-powered loyalty software to deliver customized rewards, automate communications, and enhance customer experience across multiple channels.

3. What makes Asia Pacific customer trends unique compared to other regions?

Consumers in APAC are mobile-first, digitally engaged, and highly receptive to innovative loyalty experiences. Unlike Western markets, where loyalty is often transactional, APAC consumers prefer experience-driven and community-centric loyalty models.

4. How does Capillary’s loyalty program software help enterprises in APAC stay ahead?

Capillary’s AI-powered, omnichannel loyalty platform enables brands to design flexible and scalable loyalty programs that align with regional trends. From instant gratification to gamification and real-time engagement, Capillary helps enterprises build future-ready loyalty strategies.

5. How can businesses measure the success of their loyalty programs?

Success can be measured using KPIs like customer retention rate, repeat purchase rate, average order value (AOV), and customer lifetime value (CLV). With Capillary’s data-driven insights and analytics, brands can track real-time engagement, campaign performance, and ROI from loyalty initiatives.

What is a Grocery Store Loyalty Program?

The Best Grocery Loyalty Programs in APAC and MEA

1. Lulu Happiness Program – UAE

2. New World Club Card – New Zealand

3. Amazon Fresh – India

4. Cold Storage’s Yuu Rewards Club – Singapore

5. Everyday Rewards (previously Woolworths Rewards) – Australia

The Growing Impact of Grocery Loyalty Programs in APAC and MEA

FAQs

1. What makes a grocery loyalty program successful in APAC?

2. How can grocery stores in the Middle East enhance customer loyalty?

3. Which grocery loyalty programs lead in customer engagement in the UAE?

4. What are the key elements of a strong loyalty program for grocery retailers in India?

5. How do loyalty programs benefit grocery retailers in Singapore?

Generative Loyalty: New AI-Driven Loyalty Paradigm

Why is Generative Loyalty a Game-Changer?

Generative Loyalty Ecosystems

How AI & Generative Loyalty Impact the Industry

Holistic AI-Powered Loyalty Solution

Powerful Features of Generative Loyalty

aiRA Chatbot & Nudge Framework

AskAira: An AI Assistant for Marketers

aiRA’s Capabilities

Preparing for a Generative Loyalty Future

FAQs

1. What is Generative Loyalty?

2. How does Generative Loyalty improve customer engagement?

3. Why is Generative Loyalty considered a game-changer in customer retention?

4. How can brands benefit from Generative Loyalty?

5. How does Capillary’s platform power Generative Loyalty?

The Convergence & Contradiction

Why Implementing Omnichannel Strategies in The UAE Would Work

Investments in AI and Big Data

Accelerated E-commerce Growth

Significant Millennial Population

Surge in Social Media Usage

Why Capillary is Your Ideal Partner for Omnichannel Success in the UAE

FAQs

What is omnichannel marketing?

Why would omnichannel strategies work for enterprises in the UAE?

How can Capillary drive omnichannel strategies for enterprises in the UAE?

What Are Dark Stores?

Challenges Dark Stores Face in Grocery Ecommerce

The SKU Challenge

·The Perishability Challenge

The Fulfilment Window Challenge

Benefits Of Dark Stores

Easier to Serve Large Areas

Dark stores can serve multiple locations with high order density, unlike grocery retail stores, which come with space and volume limitations.

Greater Product Availability

Reduced Cost of Operations

Real-time visibility, space and time optimization, and efficient supply chain together make dark stores a much wiser choice from a financial angle, considering the volatility in the grocery market.

Better Customer Service

Whether it is 24×7 order fulfillment, picking accuracy, or living up to the quality promise, dark stores are in a much better position to make it possible.

Future Of Grocery Ecommerce

Our Pick for the Top 6 Loyalty Programs in Saudi Arabia

1. Nuhdeek program by Nahdi Medical Company

2. Iktissab loyalty program by Othaim market

3. Al Fursan program by Saudi airlines

4. Jarir discount card by Jarir bookstore

5. Qitaf loyalty program by STC

6. Tawasul program by Arabian Oud

Taking over the Kingdom’s loyalty space the Capillary way

FAQs

What are the top loyalty programs in Saudi Arabia?

How do loyalty programs in Saudi Arabia benefit customers?

What makes the STC Qitaf program stand out in Saudi Arabia?

How do businesses in Saudi Arabia leverage loyalty programs?

How can Capillary Technologies improve Saudi loyalty programs?

Holiday Season Market Trends To Watch Out For

1. The Research-First Shoppers

2. Meet Shoppers Where They Are

Retail Dive

3. The Rise of Self-Gifting

4. Combatting Buyer’s Block: Simplify, Simplify, Simplify

Accenture Research Report

Holiday Season Marketing Strategies To Implement Right Away

1. Refurbishing the In-Store Experience

2. Riding High with Robust Customer Loyalty Programs

3. Elevating E-Commerce Shopping with the In-Store Experience at Home