This blog was updated on 26 May 2025, for more information connect with our team: https://www.easystore.co/contact 

How Malaysian SMEs Can Build a Loyalty Program Like Uniqlo, Cotton On, or H&M

Why do Malaysians stay loyal to brands like Uniqlo, Cotton On, or H&M? What do these brands have in common?

Is it their nationwide presence? Their store ambience? The quality of their products? 

Surely, Malaysia’s 1.15 million skilled SMEs are just as capable.

Perhaps it's time we explore what today’s Malaysian consumers truly value—especially from brands that sell both online and offline.

Personalisation Is the Secret to Loyalty

According to McKinsey, 71% of consumers expect businesses to offer personalized interactions. In fact, 3 out of 4 customers are more likely to buy from brands that personalize their approach.

The Q1 2022 Global Loyalty and Rewards Market Survey supports this further: nearly 85% of consumers prefer shopping at stores that offer loyalty programs. Many are even willing to travel to physical stores just to earn and redeem loyalty points.

The key takeaway? 

Personalisation builds long-term loyalty. Brands like Uniqlo and H&M invite customers to join their membership programs and download their member apps, which—when granted permission—collect up to 18 data points. 

These insights are used to personalize offers and experiences, which then translate into lasting loyalty.

This is the core of a Unified Membership Program—a system that functions seamlessly across both online and offline channels.

And if you're one of Malaysia's 1.15 million SMEs, you can absolutely implement the same strategies used by global brands!

Define Your Long-Term Objectives

Before you build your membership program, define what success looks like for your business.

If you're running both online channels and a retail store, here's how a well-structured membership program can support you:

1. Protect Profit Margins Without Endless Discounts:

Frustrated by customers constantly asking for discounts? 

A tiered membership program offers tracked rewards, exclusive benefits, and transparent systems that protect your margins while keeping customers happy.

2. Reach Customers Beyond Your Retail Area:

No need to open new outlets—test new markets and capture customer preferences in different regions through online sales and reward-based incentives.

3. Build Brand Value and Drive Higher Spending:

Loyalty builds trust, which fuels word-of-mouth marketing—still twice as effective as paid ads. Membership programs encourage customers to spend more to unlock greater rewards.

4. Make the Most of Your Marketing Budget:

Acquiring a new customer can cost up to 7x more than retaining an existing one. 

Instead of spending heavily on acquisition, reinvest in your program to keep current customers engaged and coming back. Clarifying your objectives helps ensure your program is tailored to real business goals.

Example: HisBrew Coffee offers point-based rewards that convert to discounts.