Reinventing Loyalty with Indonesia’s Leading Retailer – Erajaya’s Eraclub

A market leader in omnichannel smart retail, PT Erajaya Swasembada Tbk. (Erajaya), the conglomerate operates across 1100+ outlets in the country with 87 distribution centers and 65K+ third-party billed outlets specializing in all different types of mobile telecommunication devices. These include mobile phones and tablets, SIM Card(s), accessories, etc. In addition, the company also offers value-added services, such as mobile phones protection services and handset leasing services in Indonesia. Very few lifestyle retailers in Indonesia have been able to rise to the level of Erajaya’s e-commerce success and popularity today. The credit goes to the company’s consistent strides in digital transformation with a keen focus on building customer loyalty.

However, COVID-19 had altered the game for many brands and Erajaya was no exception. For its wide network of stores that make over billions in revenue, Erajaya needed one umbrella loyalty program that would address changing needs after COVID-19 pandemic. This is where they designed the Eraclub membership program that offered varied tiers of exclusive rewards and benefits to existing valued customers. The brand consistently innovated to communicate better with returning buyers to ensure higher retention and purchase over the long term, even during COVID-19 pandemic times.

Building online traction with Omnichannel Communication in challenging times

One key challenge that Erajaya wished to overcome with the introduction of Eraclub was essentially the massive reduction in store footfall after the onset of the pandemic. They needed to also differentiate themselves as a key lifestyle retailer that cares about connecting with consumers even better during a time of crisis. Thus, Erajaya entirely reinvented the wheel with the introduction of a club-based program that offered several price point benefits (let’s say Erajaya loyalty benefits!) along with a host of personalized discounts, gift cards, introductory offers and vouchers to consumers belonging to varied income groups.

On the basis of the search and purchase history data collected at a single source of truth, the brand orchestrated a deep customer experience strategy that meant partnering with a leading technology provider. This is where Capillary Technologies stepped in. Together, they lay down the foundation of Eraclub’s advanced communication that relies heavily on nurturing a long-term relationship with consumers over short-term profits. Eraclub (Erajaya’s loyalty programs for Indonesian customers) was established as the Erajaya Group loyalty coalition between all the different business verticals of the group. It is a program for omnichannel messaging across online and offline touchpoints that ensure that points are earned and redeemed across.

Deploying an Analytics-Driven Partnership with Capillary Technologies

Capillary Technologies helped set up the AI-powered customer engagement platform that was the very basis of Eraclub, and further implemented varied features to ensure that the customer journey was optimized. Erajaya utilized Capillary’s analytics platform to thoroughly evaluate customer behavior, using the rich insights to segment and target their customers more effectively. A deep segmentation and persona mapping helped in identifying commonly used social media platforms and interest groups that were key to allocating budgets for the right cohorts to be reached with personalized targeted offers and marketing messaging that was consistently engaging.

1. Introducing Experimental Features

The key marketing attribute that marked the design of Eraclub was diversified experimentation. Erajaya decided to introduce many different benefits across services through integrated rewards. They offered price discounts at hotels and restaurants, for instance, that elevated the customer experience. They also brought in lifestyle influencers to advocate the brand and give out customized coupon codes that increased trials. Moreover, the value or premium membership-based point-redemption was activated across services to ensure a seamless buying experience wherein the customer is not limited to any particular product category while selecting as per his own needs. While the basic membership activates – through free registration – cashbacks for every purchase along with a birthday gift, the premium model goes all out.

2. Building Multi-brand Loyalty

Next, attention was given to building multi-brand loyalty. Through this lever, customers were grouped based on their inclination towards the various brands offered at Erajaya. Whether the customer is loyal to a particular brand, switches often or regularly upgrades their products, the deep level of understanding of customers’ preferences helps Erajaya design unique campaigns and offers on the go. During public occasions of relevance or events, mass discounts were also activated. Erajaya’s contextual engagement campaigns – incorporating unique customer segments – were segregated under the following categories:

• Wider campaigns: Sent to a large population with the intention of building brand awareness
  
• Brand Preference campaigns: Sent to a selected population who prefer a specific brand over others
  
• Segmented campaigns: Targeting a very selected group of members with better-personalized messaging
  
• Behavior Preference campaigns: Sent to customers based on their needs and unique traits 

3. Delivering High-Value, Real-Time Rewards

Simplicity and accessibility were the two central themes of the brand’s loyalty program. The complete customer journey to register and earn the rewards had to be simple, quick, and yet remarkable enough to entice customers with an easy registration process. Erajaya and Capillary wanted to create a loyalty program that can be effortlessly implemented by the store staff for a better in-store experience. For this, they made sure to have an easy-to-use website layout, simple points accumulation and redemption, with comprehensible terms and conditions as well as the right point-earning structure based on the frequency of a customer’s store visit – motivating customers to use their points regularly. And their point activation strategy, as explained below, works beautifully.

Catching up with the speed of the digital era, the features of the loyalty program had to be real-time. Instant gratification is an important component of a rewarding experience. Erajaya wanted customers to be able to instantaneously track their rewards as they thrive on speed and convenience. The brand has designed the program in a way that the benefits offered were relevant to customers and ensured the reward matched the effort required to achieve it. Eraclub has two membership plans – a basic membership which is free of cost and a premium membership with an annual fee which can be paid at the retail stores or online. Key additional steps deployed to offer value to the customers included: 

• Flexibility to redeem points as flat discounts during transactions
• Reward catalog that includes offers from multiple partners providing extra benefits and deals to the customers
• Effective customer lifecycle management for the best customer journey

Growing at a monumental pace: The Eraclub Business Impact

Erajaya collaboration with Capillary Technologies outshined other players with Eraclub as a result. 75% of the sales contributed came from Eraclub members in 2021. A staggering 1.3 million new customers were engaged even during a global crisis. Total sales contributed by members is now consistently on the rise and the revenue growth is exponential as mentioned at the very start. If you too are looking for a lifestyle loyalty program to change the game for your retail business, get in touch with the experts at Capillary today.

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Mayang Ramadhani is a Customer Success expert focused on marketing solutions and product consulting with clients globally to drive revenue growth through customer engagement and retention. She is always eager to learn new things and deepen her knowledge of disruptive technologies, business innovations and marketing strategies.