- Design industry shaping loyalty programs
- Integrate easily and go live quicker
- Deliver hyper-personalized consumer experiences
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Did you know that there is an incredible way to make your new customers behave like they have been buying your product for 10 years?
Yes, you read it right! Your brand can attain this from refining customer experiences through an accessible and well-crafted rewards program. In this guide, we’ll explore the key strategies for building a successful rewards program in Indonesia, from understanding local customer preferences to designing compelling incentives. Whether you’re launching a new program or optimizing an existing one, these insights will help you craft a rewards experience that keeps customers coming back.
The Indonesian retail market continues to expand, driven by a growing middle class and evolving consumer behavior. According to recent projections, the sector is expected to grow at a CAGR of 4.7% from 2024 to 2030, highlighting a steady yet competitive landscape. With consumers increasingly blending digital and in-store shopping experiences, brands must adapt by creating seamless, engaging interactions that foster long-term relationships.
In this evolving retail environment, customer rewards programs play a crucial role in building brand loyalty and differentiation. By offering personalized incentives, brands can strengthen customer engagement, drive repeat purchases, and establish a solid foothold in Indonesia’s dynamic retail sector.
To develop an effective rewards program in Indonesia, it’s crucial to understand the evolving consumer landscape. Recent trends highlight key factors influencing purchasing behaviors:
A significant portion of Indonesian consumers are becoming more cautious with their spending. According to a report by NielsenIQ, the proportion of consumers adopting a more cautious approach increased from 34% in 2023 to 41% in 2024. This shift underscores the importance of offering value-driven rewards that resonate with budget-conscious shoppers.
The rise of e-commerce has transformed shopping habits, with more consumers embracing online platforms. Cashback programs have gained popularity, driven by the demand for instant gratification and the convenience of digital transactions. Spending through cashback programs is projected to grow by 16.3% annually, reflecting a shift towards digital incentives.
There’s an increasing interest in health and well-being among Indonesian consumers. Many are seeking functional foods and beverages that offer specific health benefits, such as improved sleep, gut health, and immunity. This trend presents an opportunity for rewards programs to incorporate health-related incentives, appealing to the health-conscious segment.
While consumers are open to experimenting with new products, they are also becoming more selective about their brand choices. With a plethora of options and frequent promotions, shoppers are willing to switch brands if better value is offered elsewhere. This behavior highlights the need for personalized and meaningful rewards to foster brand loyalty.
By aligning rewards programs with these consumer preferences, brands can effectively engage Indonesian consumers and take the first step in fostering long-term loyalty.
Now that we’ve explored Indonesian consumer preferences, the next step is designing a rewards program that effectively aligns with their behaviors and expectations. A successful program should drive engagement, encourage repeat purchases, and provide tangible value while staying adaptable to the country’s evolving retail landscape. Here are a few strategies to help brands create a high-impact customer rewards program in Indonesia:
Indonesian shoppers love a good deal. But today, it’s not just about offering random discounts. Customers want rewards they can actually use and get quickly. Instant cashback, personalized vouchers, and app-based coupons can help create an immediate sense of value. A simple, clear redemption process will also make customers more likely to engage with the program.
Indonesian shoppers are becoming more digitally savvy, but many still prefer shopping in physical stores. A great rewards program in Indonesia should work both online and offline, whether through app notifications, QR-based vouchers, or WhatsApp offers. The easier it is for customers to earn and redeem rewards, the better the engagement.
Not all customers shop the same way, so offering tiered rewards is a great way to motivate different customer groups. Regular shoppers could get exclusive discounts, while high-spending members might enjoy early access to sales or free delivery. When customers feel like they’re getting special treatment, they’re more likely to stick with your brand.
A one-size-fits-all rewards program doesn’t work anymore. Indonesian shoppers are getting more selective, and generic discounts won’t keep them engaged. Instead, brands should use customer data to personalize rewards such as birthday discounts, location-based offers, or recommendations based on past purchases. AI-driven insights can help make rewards feel more relevant and valuable.
Indonesian consumers love interactive experiences, and gamification is a great way to make a rewards program more engaging. Features like “spin-the-wheel” discounts, milestone-based challenges, or limited-time surprise rewards can make earning rewards feel exciting. A fun, interactive program encourages customers to keep coming back and can even drive higher online and offline footfall.
A study of other top programs in Indonesia can also be a good hygiene check while developing the right rewards programs. Here are success stories from two brands who have emerged as leaders in enhancing their brand experience with their rewards programs.
The Erajaya group has an interesting rewards program called the Era Club program to personalize interaction with customers, understand customer behavior patterns, and reward the customers with the right offers. Their program is a tiered membership, with points and discounts provided on selected products, which is an integrated loyalty for offline and online platforms. They also give personalized instant offers based on customer preferences.
This well-developed program helped the company get more than 1.3 million new member registrations, 75% loyalty sales contributed by members.
Learn About: Capillary’s Partnership with Erajaya
Kanmo Retail Group, on the other hand, launched their Kanmo Circle program, which also provided tiered memberships. The company focused on special birthday discounts and points redemptions. Kanmo ran campaigns with personalized offers based on customers’ historical purchase data. The group achieved 94% loyalty sales contributed by members with 140,000 new members.
At Capillary, we have helped 100+ create robust loyalty programs with the consumer needs in mind. Our products can directly help increase sales and conversion with its AI-powered CRM software and rewards programs.
As Indonesia’s retail market continues to expand in 2025, fueled by increasing digital adoption and rising household consumption. In this landscape, a well-structured rewards program is a strategic asset for driving deeper engagement, increasing customer lifetime value, and differentiating your brand. By personalizing rewards, leveraging omnichannel experiences, and integrating gamification, businesses can create a compelling customer rewards program that keeps consumers coming back.
A lot of other companies in Indonesia are also in the same space, and while developing a customer rewards strategy is important, execution is what truly makes a difference. The ability to gather the right consumer insights and turn them into meaningful rewards is what separates a good program from a great one. Talk to our loyalty experts today, and figure out the next step in elevating your brand’s loyalty program in Indonesia.
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