How can Malaysian SMEs craft same-level membership program as Uniqlo, Cotton On or H&M?

By Kelie Wong · 24th April, 2024

How can Malaysian SMEs craft same-level membership program as Uniqlo, Cotton On or H&M? | EasyStore

Why do Malaysians continue to show loyalty to brands such as Uniqlo, Cotton On, or H&M? What exactly do these brands share in common?

Is it due to their extensive presence across the nation? Is it because of their store ambience? Is it the product quality they deliver? Certainly, the 1.15 million skilled Malaysian SMEs don't fall behind either.

Perhaps we could explore into what modern Malaysian consumers appreciate and anticipate from businesses today - particularly those operating online and in retail! 

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Personalisation Is The Secret To Loyalty 

According to a study by McKinsey, 71% of consumers anticipate companies to engage with them on a personalized level. 3 in 4 customers express a greater inclination to buy from brands that personalize their interactions. 

Furthermore, findings from the Q1 2022 Global Loyalty and Rewards Market Survey reveal that nearly 85% of consumers prefer patronizing stores that offer loyalty and rewards programs. Moreover, consumers demonstrate a willingness to travel to physical stores if they can accrue and redeem loyalty points.

The takeaway here is that we need to harness the power of personalization to drive long-term loyalty. Brands like Uniqlo and H&M invite customers to join their membership and download their Member apps, which, with permission, collect up to 18 data points. These data are then converted into insights to personalize experiences and product offerings, consequently fostering loyalty.

These strategies encapsulate what we term Unified Membership Program - membership that works seamlessly both online and in-store. 

And here's the thing, if you are one of the 1.15 million talented Malaysian SMEs, you can also achieve same level success as these international brands! 

Plotting Long-Term Objectives

Before embarking on your journey of creating a membership program, it's crucial to identify your specific objectives.

Considering that you are a business owner present across online channels and own a retail store, what does crafting this membership means for your business?

  • Maximum Rewards With Minimum Margin Impact: Frustrated by customers BARGAINING for discounts, demanding more and more? Implementing membership tiers, consistent tracking, transparent rewards, easy redemption, and community engagement can safeguarding your profit margins from endless negotiations. 

  • Profits Beyond Existing Retail Reach: Explore selling to customers across regions without the need for physical presence or incurring overhead costs by conducting market tests and collecting customer preferences in those areas.

  • Brand Building for Higher Purchase Value: Membership drives loyalty and trust, fostering word-of-mouth marketing. Branding lays the groundwork for word-of-mouth marketing, generating 2x sales compared to paid advertising. Membership programs also drive overall higher spending to achieve rewards.

  • Optimising Marketing Budget: Studies suggest that acquiring a new customer can cost five to seven times more than retaining an old one. Imagine if you could use those budgets to invest into improving your business or improving the rewards to make it even more attractive! 

Plotting down your objectives will help tailor your membership program to effectively meet your business goals.

Membership that works on-the-screen and in-store 

A successful membership program should meet the following criterias: 

  • Online and Offline Ready: Seamlessly integrate both online and offline channels to provide a unified customer experience. Regardless of their shopping preference, customers should access equal benefits and rewards, driving engagement and participation.

  • Member App: Enhance your membership program's effectiveness by investing in a dedicated app. Members can conveniently access their accounts, accumulate points, redeem rewards, and directly engage with your brand.

  • Customer-First Features: Elevate the member experience with features such as saved payment details, personalized recommendations, and in-app communication. These enhancements foster stronger connections between your brand and its customers.

  • Members-Only Rewards: Create a sense of exclusivity by offering members-only benefits. Joining the membership should convey a feeling of exclusiveness, encouraging customer participation.

4 Types of Membership Programs

When designing your membership program, consider the various types to determine which aligns best with your business model and customer preferences:

  • Points-Based Program: Members earn points for every purchase, which can be redeemed for discounts, vouchers, or free products. This program is purchase-driven, incentivizing frequent transactions. Here's an example of how HisBrew Coffee rewards customers with points for purchased which can be used to convert as discounts. 

  • Tier-Based Program: Members progress through different tiers based on their level of engagement or spending. Each tier unlocks progressively more valuable benefits and rewards, fostering loyalty and incentivizing continued patronage. Here's an example of Tier-Based Reward Program called Beauty Access crafted for skincare lovers by Valent Skin. 

  • Credit / Cashback Program: Reward customers with credits that can be deducted from their next purchases. Here's an example of how Sultera does it, they reward VIP members up to 23% cashback.

  • Subscription-Based Program: Members pay a recurring fee to access exclusive perks, discounts, and experiences. This program is awareness-driven, offering members ongoing value in exchange for their subscription.

Creating Your Unique Program

When crafting your membership program, consider the following key factors to ensure its success:

  • Program Type: Determine whether a points-based, tier-based, or subscription-based approach best aligns with your goals and customer preferences. Consider combining elements of each type for a comprehensive and inclusive program.

  • Duration and Renewal Criteria: Decide whether your program will be lifetime, quarterly, or yearly, and establish clear criteria for renewal. Transparency and consistency are essential to maintain member trust and satisfaction.

  • Features-Based Benefits: Offer a diverse range of benefits, such as better exchange rates, vouchers, lifetime discounts, exclusive support, and expedited delivery. Tailor these benefits to cater to the specific needs and preferences of your target audience.

  • Engagement Strategies: Make your membership program engaging and interactive by incorporating gamification elements, exclusive events, product launches, and lifestyle-driven content. Encourage members to actively participate and connect with your brand on a deeper level.

Here's how you can set up your membership program on EasyStore! 

Over 50,000 brands use EasyStore to unify their retail and ecommerce business.

Request a demo

Turn shoppers into superfans

To differentiate your membership program from competitors and capture the attention of your target audience, focus on creating unique and memorable experiences. 

By setting clear goals, leveraging technology, and prioritizing customer-centric experiences, you can design a program that not only drives sales and loyalty but also strengthens the bond between your brand and its customers. 

Embrace innovation, stay agile, and continually refine your program to ensure its long-term success in an ever-changing retail landscape! 

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